Brussels, 02/12/2004 (Agence Europe) - In its most recent report on European competitiveness, the European Commission estimated the public sector, the largest employer in many European countries (32% of jobs in Sweden, the highest level in an EU country, as opposed to 11% in Germany and the Netherlands, which share the lowest levels), was in general inefficient and that the current level of production in the EU public sector could be done more cheaply. The Commission also estimates, without empirically establishing it, a direct link, between size and productivity in the public sector. The smallest public sectors in Ireland and Luxembourg are more efficient in terms of productivity, compared to those of France and Belgium, which are highly developed but under-productive. The Commission highlights that only efficient public administrations benefit the economy as a whole. The Commission's empirical researchers suggest that privatisation and sub-contractors can be beneficial in efficiency, profitability and investment.