This paper documents two gaps in Europe’s growth performance since 2008 and 2009. The first refers to the slower output, investment and productivity growth rate compared to the pre-crisis period. The second refers to the performance gap relative to the United States. Weak productivity growth is a major factor slowing the speed of recovery in Europe. This slowdown has broadened from the services sector to manufacturing, which has been a traditional stronghold for productivity in Europe. There is a need to accelerate investment in the most important assets for productivity recovery.