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After years of crisis, the European economy is expanding robustly, and GDP growth is projected to remain strong in 2018 and 2019. With an expansion underway, attention needs to shift to Europe's long-term challenges. Wellbeing disparities, the UK vote to exit the European Union, low potential growth, an ageing population and continuous technological developments are all important challenges. To further strengthen the confidence of all its citizens, the European Union needs to focus on policies that support a stronger and more inclusive growth. A reformed EU budget could enhance growth and make it more inclusive by stepping up investment in R&D, better targeted cohesion and agriculture spending to more effectively address regional divides, and increased funding to support less qualified youth. To spur long term growth and sustained improvements in living standards, the EU needs to revive the single market project, by removing remaining barriers in services, energy, digital and transport. Deepening the single market and faster adoption of digital technologies will create new jobs but put at risk others. The EU should better help lagging regions catch up and support those who lose out from globalisation and are displaced by technological change.

SPECIAL FEATURE: STRONGER AND MORE INTEGRATED EUROPE