Concerning the overall business environment, there is evidence that Europe is in a less favourable position than its main competitors. Surveys among European businessmen suggest that this holds in particular for the tax system, labour regulations and the administrative burden.
The average marginal tax rate on labour in the euro area is high and hovers around 15 percent points above the rate in the US 6 . Labour regulations such as employment protection legislation hinder job-to-job mobility in Europe.