Competition's Double-Edged Sword

In Europe, aggressive competition and the breakup of oligopolistic markets have led to significantly lower costs in several sectors, such as aviation and telecommunications. However, this competitive environment has had unintended consequences, resulting in lower profit margins for businesses. As price gouging decreases, companies find themselves with less capital for investment. Consequently, Europe faces challenges in sustaining robust investment levels, highlighting a complex balance between market efficiency and economic growth.