This study is prepared by the Center for European Studies of Primakov National Research Institute of World Economy and International Relations. It observes the problems of competitiveness and the challenges faced by European countries and the European Union as a whole in contemporary global economy. The first part of the book presents the general position of the EU in the world economy, examines industrial competitiveness and describes the role of State in its ensuring. The second part is dedicated to national competitiveness of European countries in the European Single Market. The publication is intended for Agencies developing Russia's economic policy, as well as for researchers, higher education professors, postgraduates, students, and anyone interested in the current trends in the world economy and international relations.