France at a standstill. America in an AI frenzy. Productivity over austerity - what Europe must learn from the USA.

In recent weeks, I've written a lot about productivity as a business imperative in times of AI and economic instability - not efficiency through cutting costs, but greater impact with what I have.

Yesterday: Vote of no confidence in France. A planned government austerity program - aimed in part at reducing the €44 billion deficit - has failed. The third government in 18 months falls. French public debt stands at over 110% of GDP.

The consequence: investors are beginning to view France's creditworthiness as critically as Italy's. A symptom of a deeper European challenge.

Because when the eurozone's second-largest country stumbles, it affects confidence in the euro and the entire economic stability of the EU.

Change of perspective: A few weeks ago, I read a commentary in the FT Weekend by Gillian Tett that stuck with me. Donald Trump's economic circle is betting big on one thing:

AI as a productivity booster - to increase growth, reduce inflation, and keep debt sustainable.

The FT article cites a key scenario: if productivity increases by just 0.5 percentage points per year, the US debt ratio could be stabilized by 2050 - without austerity.

Of course, that's optimistic. But it shows: Productivity is economic policy. And a strategic business imperative.

Particularly striking: The Draghi Report shows that Europe is already up to 15% behind US productivity today - especially in knowledge-intensive, digital fields.

What does this mean for us as European business leaders? Productivity isn't a "nice to have," but a strategic imperative and narrative for economic stability - one that inspires courage, emphasizes innovation, and sees the future as something we can shape.

That's the economic difference between the USA and Europe: economic optimism about the future vs. defensive reflexes.

At DAYONE, we measure the business quality of our work by whether we succeed in embedding productivity as an active guiding principle in strategy, design, and organizational consulting. Not just in thinking - but in real, concrete decisions and implementations.

Imperative and narrative aren't ends in themselves. They're a mindset. For everyone shaping the economy: policymakers, companies, leaders, and teams.