Synopsis
Brussels, Jan 30 (NationPress) The European Commission has introduced the Competitiveness Compass, a strategic plan aimed at revitalizing the EU's economic strength and fostering technological innovation to compete effectively with the US and China.Key Takeaways
- Competitiveness Compass aims to enhance EU's economic edge.
- Focus on innovation, decarbonisation, and security.
- Proposal for annual investment of €750-800 billion.
- Initiatives for AI and advanced technologies.
- Strategies to support startups and SMEs.
Brussels, Jan 30 (NationPress) The European Commission has unveiled the Competitiveness Compass, a strategic framework designed to enhance the economic prowess of the European Union (EU) and foster technological leadership as it aims to bridge the competitive gap with the US and China.
Recognizing a two-decade delay in productivity growth relative to other key economies, the Compass is centered on enhancing innovation, promoting decarbonisation, and reinforcing security, as stated by the Commission.
“Europe possesses all the necessary resources to excel in the competitive landscape. However, we must also address our vulnerabilities to restore our competitiveness,” remarked Ursula von der Leyen, President of the European Commission.
The Compass builds upon a strategic report published last year by Mario Draghi, the former Italian Prime Minister and ex-President of the European Central Bank (ECB), which advocates for an extra annual investment ranging from 750 billion euros (approximately $779 billion) to 800 billion euros to mitigate Europe’s declining competitiveness, as reported by Xinhua.
To expedite the growth and integration of AI, the Commission plans to introduce initiatives like “AI Gigafactories” and “Apply AI”, as detailed in the Compass. It also pledges to take decisive actions in advanced materials, quantum tech, biotech, robotics, and space technologies.
A distinct report released by the Commission highlighted the EU's persistent challenges in scaling its business operations. This report lays the groundwork for the Competitiveness Compass.
In this context, the Compass delineates a strategy to eliminate obstacles that hinder startup expansion, alongside proposed legislative reforms aimed at simplifying regulations.
Moreover, it mentions the forthcoming Clean Industrial Deal to promote decarbonisation, initiatives for affordable energy to decrease expenses, and targeted strategies for high-risk sectors such as steel, metals, and chemicals.
To lessen dependencies, the EU intends to prioritize domestic firms in critical sectors and technologies under revised public procurement guidelines.
To bolster competitiveness further, the Compass aims to reduce the administrative load for companies by at least 25 percent and by 35 percent for SMEs.
It also proposes actions to diminish the barriers affecting the EU Single Market, which has faced regulatory fragmentation challenges for decades, and to progress the European Savings and Investments Union project to improve the EU's financial competitiveness, despite its gradual advancement over the years.
