The article examines total factor productivity (TFP) growth in 30 European economies from 1994 to 2005. Western Europe shows a slowdown in TFP growth after 2000, while New Europe has higher TFP growth and less deceleration. Central and Eastern European economies have high TFP growth and acceleration in the second half of the sample. Product market regulation in Western Europe may negatively impact TFP growth and hinder convergence.