Yesterday, the EU officially launched its Competitiveness Compass, which establishes competitiveness as one of the EU’s overarching principles for action. Europe can only match its continent-sized competitors if EU and national policies are aligned around the same objectives and reinforce each other.
“Europe has everything it needs to succeed in the race to the top. But, at the same time, we must fix our weaknesses to regain competitiveness. The Competitiveness Compass transforms the excellent recommendations of the Draghi report into a roadmap. So now we have a plan. We have the political will. What matters is speed and unity. The world is not waiting for us. All Member States agree on this. So, let's turn this consensus into action.” Ursula von der Leyen, President of the European Commission
The Compass is composed of three transformational imperatives to boost competitiveness and five horizontal enablers necessary to underpin competitiveness across all sectors.
The three pillars
1. Closing the innovation gap
The first pillar is about driving productivity through innovation. The Commission will work to create a new dynamism for Europe’s industrial structure.
How?
- Facilitate the establishment of start-ups and conditions for scaling up
- Create a deeper and efficient venture capital market
- Ease mobility and retention of talent
- Invest in state-of-the-art infrastructures
- Boost innovation and research
2. A joint roadmap for decarbonisation and competitiveness
This pillar is about integrating decarbonisation policies with industrial, competition, economic and trade policies. They are a powerful driver of growth when they are well integrated.
How?
- Integrate decarbonisation policies with industrial, economic, and trade policies
- Facilitate access to affordable energy
- Strengthen the business case for a clean transition
- Invest in state-of-the-art infrastructures
- Promote competitiveness of clean tech manufacturers
3. Reducing excessive dependencies and increasing security
This pillar is about integrating more tightly security and open strategic autonomy considerations in the EU economic policies. The security environment is a precondition for EU firms’ economic success and competitiveness.
How?
- Develop policies, partnerships, and investments to ensure economic security, resilience, and strategic interests
- Strengthen defence industrial capabilities and support by pan-European cooperation
- Improve preparedness
Horizontal enablers
The three pillars are complemented by five horizontal enablers, which are essential to underpin competitiveness across all sectors:
- Simplification
- Removing barriers in the Single Market
- Financing
- Skills and quality jobs
- Better coordination
Source: EU Commission Press corner
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