Brussels, 30th of January 2025 - The European Commission has introduced the Competitiveness Compass, a new strategic framework aimed at reinforcing Europe's economic position in key industries and technological leadership. Building on Mario Draghi’s September 2024 report on competitiveness, the initiative outlines priority areas to boost innovation, accelerate industrial decarbonization, and reduce economic dependencies on external markets.
This initiative is based on three key priorities:
1. Closing the Innovation Gap
The EU is focusing on enhancing research, development, and technology adoption across industries, with a strong push for AI, quantum computing, biotechnology, and advanced materials. Measures will include support for startups and scale-ups, as well as policy incentives to drive industrial innovation.
2. A Joint Roadmap for Decarbonization and Competitiveness
The Clean Industrial Deal will integrate sustainability and economic policies, ensuring that industries move toward lower emissions while remaining competitive. This includes access to affordable clean energy and streamlined regulations to support businesses transitioning to sustainable operations.
3. Reducing Dependencies and Enhancing Security
The strategy also prioritizes economic security and resilience, with a focus on reducing reliance on critical materials and technologies from external suppliers. New policies will strengthen Europe’s defense industrial capabilities and improve supply chain stability in key sectors.
The European Commission has identified five structural factors that will support Europe’s competitive edge:
1. Simplification of regulations and administrative burdens on firms.
2. A stronger Single Market to remove trade and business barriers.
3. Improved financing access for companies, particularly SMEs.
4. Investment in skills development to match the needs of emerging industries.
5. Better coordination between EU and national policies for consistency in implementation.
Further Reading and Official Documents
For more details on the Competitiveness Compass, you can explore the following resources: