9T49BELTE In 2006, 17 of the world’s 50 most valuable companies were European. Today, the number stands at 7 according to this article in The Economist. Only Nestlé is a global leader in its sector.

There are main four reasons that Europe had lagged behind:

  1. Concentrated on old industries
  2. Focused on the emerging markets
  3. Companies in the rest of the world continued to consolidate
  4. European managers’ less aggressive attitude towards shareholder value

Of course, it is much more complicated than this, both from political and economic points of view, well worth a read if you have a few moments over the bank holiday.

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