The significance of investment for an economy’s production potential, labour productivity and a country’s international competitiveness are all key issues. On balance, I believe there is no doubt that sufficient investment is a basic prerequisite for mastering the labour market problems in Europe.
Of course this is not to say that changes in the pool of available  1  BIS Review 38/2000  labour, such as improving job-seekers’ professional qualifications, are not necessary as well. And certainly the relative factor prices must also contribute to solving the problem. In this connection the future problems of an ageing population should also be borne in mind.