Three economists set out "Constitution of Innovation" to restore EU's competitiveness

Three major academics have set out steps to restore Europe's competitiveness and economic growth in what they call a "Constitution of Innovation".

The paper, written by Luis Garicano of the London School of Economics, Bengt Holmström of Massachussetts of Technologly and Nicolas Petit of the European University Institute, call for six measures to bring back economic dynamism in Europe and protect its social model.

The measures are: eliminating the use of directives in favour of regulations; creating specialised commercial courts; applying the principle of "federalised field peremption"; introducing a 28^th regime for businesses; relying on existing EU institutions; and reforming legislative practice.

The authors argue that the EU has stifled economic growth by adding layers of overlapping and sometimes contradictory regulation at European and national level instead of allowing businesses to offer goods and services across the single market.

They write: "In recent decades, the Union and its Member States have confused regulation with progress and bureaucracy with integration."

The…