EU institutions are seeking ideas on how to rebuild the competitiveness of European industry. Among the key actions, experts include simplification of regulations and increased investment in digitization and green technologies. These principles underpin the recently published Competitiveness Compass, one of the first initiatives of the new European Commission, which is set to determine strategic directions for the coming years. Soon, the Commission will also present another initiative – the Clean Industrial Deal, aimed at supporting European companies in achieving climate neutrality without weakening their position on the global market.
“Europe is at a very difficult moment in terms of competitiveness because we have high labor and energy costs, which make it harder for us to compete on the global market, unlike China and the United States,” says Dr. Sonia Buchholtz, Director of Transformation Financing and Industry programs at the Energy Forum think tank.
The European Union is losing the global race with the USA and China, according to a recent report commissioned by the European Commission by Mario Draghi, former president of the European Central Bank. Factors contributing to this include low innovation compared to the US and China, particularly in advanced technologies such as artificial intelligence, challenges associated with the combination of decarbonization and maintaining industrial competitiveness, and high energy costs that significantly burden European companies, especially compared to competitors across the Atlantic.
Among the solutions to the problems of European industry, experts consistently mention structural reforms, smarter regulations and a focus on innovation. Draghi’s report points to the need for a radical increase in investment expenditure by an additional 750-800 billion euros per year, especially in the area of digitization and green technologies.
Reviving the EU economy and improving its competitiveness vis-Ã -vis the US and China is a priority for the new European Commission, which began work in December last year. Ursula von der Leyen, re-elected for a second term as EC President, has already announced that Europe will continue to adhere to the goals of the Green Deal and will not abandon action to protect the climate, but the transformation is to be carried out more “skillfully” than before.
In February, the Commission is to present another initiative – the Clean Industrial Deal, which is to support European companies in achieving climate neutrality without weakening their position on the global market.
“This will only be a signal to start work. The final shape is expected to be given only at the end of this year. This is definitely an opportunity for countries like Poland, with a specific developmental position and certain difficulties, but also certain specific conditions, to show their role and take care of their place when intergovernmental negotiations on the shape of this document will take place”, says Dr. Sonia Buchholtz.
