The European Commission has presented the Competitiveness Compass for the EU, a strategy aimed at strengthening the EU’s economic position and closing the productivity gap with other economies.
The Competitiveness Compass defines competitiveness as a core principle guiding the EU’s actions. The Compass aims at two main objectives. Firstly, it seeks to identify the necessary policy adjustments for Europe to accelerate progress. Secondly, it aims to develop new ways of working together to increase the speed and quality of decision-making, simplify frameworks and rules, and overcome fragmentation.
Three priority areas of intervention have been outlined:
- Innovation: the EU aims to boost growth by supporting start-ups and scaling up tech products and technologies. Specific initiatives will be introduced for artificial intelligence, advanced materials, biotechnology, robotics, and space technologies. A strategy for start-ups and scale-ups will remove regulatory barriers; while a new European legal framework will simplify rules on corporate, bankruptcy, and tax law.
- Decarbonization and competitiveness: the strategy addresses the high energy costs through a Clean Industry Deal to position the EU as a hub for sustainable production. An Affordable Energy Action Plan will be introduced, alongside regulations to accelerate permits for the industrial transition, with a focus on key sectors such as steel, metallurgy, and chemicals.
- Security and reduction of dependencies: to reduce dependencies and keep diversifying the supply chains, the Compass refers to a Clean Trade and Investment Partnerships to help secure supply of raw materials, clean energy and sustainable transport fuels.
Five cross-cutting actions for success:
- Simplification of the regulatory environment, reducing bureaucracy for businesses;
- Fully exploit benefits of scale offered by the Single Market, by modernizing rules to eliminate regulatory barriers and speed up access to EU funding;
- Establishing a EU of savings and investments to facilitate venture capital and financial flows;
- Promoting skills and quality jobs while ensuring social fairness;
- Improve policies coordination between the EU and Member States.
Through the Competitiveness Compass, built on the recommendations of the Draghi report, the Commission set out its vision to make the EU’s economy more competitive and to build a favorable business environment where companies can thrive.
For more information, you can access the communication from the Commission here: link.
