Europe's bid to improve its competitive advantage is hampered by underutilization of its productive potential, as gleaned from its high unemployment rate, and the dissociation of economic growth and employment, where economic development is no longer accompanied by rise in employment. The Competitiveness Advisory Group addresses these issues in its work program and identifies sectors showing the greatest potential for enhancing competitive edge, among which are infrastructure, trade and investment. It also urges the implementation of key policy programs. The Group's proceedings and the main themes of its first two semi-annual reports (June and December 1995) are discussed.

JEL: F00