From the European Competitiveness Compass published on 29/1 and the EU Commission’s work programme 2025 published on 11/2:
To become more prosperous, competitive and resilient, EU citizens and businesses must be protected from unfair competition, obstacles to accessing capital, high energy costs and the imminent danger of climate change.
Europe must act in unison and play to its strengths and quickly harness its own pathway to innovation-based productivity growth towards a climate-neutral future.
⭕ Close the innovation gap
Innovation must be at the heart of European renewal.
The Draghi report shows that productivity growth is the result of a combination of two forces: disruptive innovation brought about by new, dynamic start-ups challenging incumbents; and efficiency gains in mature traditional industries applying these innovations.
A dedicated EU Start-up and Scale-up Strategy will be created to close the innovation gap.
⭕ Digitalise to lift Europe’s productivity growth
Digitalisation and diffusion of advanced technologies across the European economy are the second necessary ingredient to lift Europe’s productivity growth.
Overall, 70% of the new value created in the global economy in the next 10 years will be digitally enabled.
Digitalisation will also go hand in hand with simplification to reduce the reporting burden.
We will accelerate our path to a digital regulatory environment, and will propose to remove inefficient requirements for paper formats.
⭕ Promote clean tech and new circular business models to meet the objective of becoming a decarbonised economy by 2050
The EU needs to develop lead markets and policies to reward early movers.
Energy intensive sectors (steel, metals, chemicals…) are among the most vulnerable in this phase of the transition. These industries are also the backbone of the European manufacturing system, and produce inputs vital for whole value chains.
To accompany their transition, tailor-made action plans will be presented following the Clean Industrial Deal.
Resource efficiency and boosting circular use of materials helps decarbonisation, competitiveness and economic security.
The European remanufacturing market’s circular potential is projected to create 500,000 new jobs by 2030.
A Circular Economy Act proposal will serve to catalyse investment in recycling capacity. This will be accompanied by the roll-out of Eco-design requirements on important product groups.
⭕ The security environment is a precondition for EU firms’ economic success and competitiveness
In a global economic system fractured by geopolitical competition and trade tensions, the EU must integrate more tightly security and open strategic autonomy considerations in its economic policies.
The Single Market is critical to build continental size in a world of giants. It is today the home market for 23 million companies, providing goods and services to almost 450 million Europeans.
Removing remaining intra-EU barriers and expanding the Single Market will help competitiveness, by providing bigger markets, lowering energy prices and enhancing access.
Security and resilience can also become a driver for competitiveness and innovation.
⭕ Supporting people, strengthening our societies and our social model
Europe’s unique and highly treasured social model constitutes both a societal cornerstone and a competitive edge.
However, recent crises have challenged it by impacting the cost of living, housing and inequalities. This is further exacerbated by the rapid technological shifts, demographic change and sectoral transitions now under way.
A key focus of this Commission will therefore be to strengthen social fairness.
By safeguarding our social model and ensuring fairness in a transforming economy, we can drive prosperity, seizing the opportunities offered by the green and digital transitions.
The European Competitiveness Compass can be downloaded here >>>
The EU Commission’s Work programme 2025 can be downloaded here >>>