{"id":13014,"date":"2025-02-12T10:20:58","date_gmt":"2025-02-12T10:20:58","guid":{"rendered":"https:\/\/axevera.com\/?p=13014"},"modified":"2025-02-12T10:21:00","modified_gmt":"2025-02-12T10:21:00","slug":"the-eu-competitiveness-compass-a-plan-for-the-future","status":"publish","type":"post","link":"https:\/\/axevera.com\/en\/2025\/02\/12\/the-eu-competitiveness-compass-a-plan-for-the-future\/","title":{"rendered":"The EU Competitiveness Compass: A Plan for the Future"},"content":{"rendered":"\n

The European Union finds itself at a crucial crossroads for its strategic development. In recent years, it has experienced a significant economic and industrial slowdown, highlighting its lag behind the United States and China, the current leaders in technological innovation.<\/p>\n\n\n\n

To regain a position of global leadership, the new competitiveness model proposed by the European Commission is based on three fundamental pillars: bridging the innovation gap, combining decarbonization and competitiveness, and reducing strategic dependencies to ensure economic security. The Competitiveness Compass translates the Draghi report<\/strong> into a concrete strategic plan for the future of European citizens, with the goal of making the EU an attractive environment for investment, an advanced production hub, and a model of sustainable development.<\/p>\n\n\n

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Why is it necessary to rethink the European economic model?<\/strong><\/p>\n\n\n\n

The EU has a vast consumer base, a high level of private savings, a wealth of talent and professionals, and a single European market that fosters growth and development. However, after enduring a pandemic crisis and the energy shock triggered by Russia\u2019s invasion of Ukraine, the system has revealed its vulnerabilities and the urgent need to reduce the productivity growth gap compared to other global economic powers.<\/p>\n\n\n\n

The lack of innovation<\/strong> negatively impacts the European industrial system, preventing the development of companies capable of shaping the technological and industrial future of the continent. High energy costs, excessive bureaucracy, and dependence on global supply chains make EU member states increasingly reliant on dominant global trade players such as the United States and China.<\/p>\n\n\n\n

How can the EU move toward growth and competitiveness?<\/strong><\/p>\n\n\n\n

1. Bridging the innovation gap<\/strong><\/p>\n\n\n\n

One of the main obstacles to European competitiveness is the lag in innovation compared to other global powers. Although the EU has a strong research and development sector, too few innovative ideas are transformed into marketable products. Currently, only one-third of patents registered in European universities find practical applications. Moreover, startups struggle to grow due to regulatory fragmentation and a shortage of venture capital. The EU attracts only five percent of global venture capital funds, compared to fifty-two percent in the United States and forty percent in China.<\/p>\n\n\n\n

To address this challenge, the Commission has announced an EU Strategy for Startups and Scale-Ups<\/strong>, aimed at removing obstacles to the growth of emerging businesses and improving access to financing. Additionally, a 28th regulatory regime<\/strong> will be introduced to provide a unified legal framework for innovative companies across the EU, eliminating the need to navigate twenty-seven different legal systems and simplifying tax, corporate, and labor regulations. Finally, through the new TechEU Program, the Commission will invest in key technologies such as artificial intelligence, quantum computing, and biotechnology to strengthen European industry.<\/p>\n\n\n\n

2. Combining decarbonization and competitiveness<\/strong><\/p>\n\n\n\n

The green transition<\/strong> presents an opportunity for economic growth but requires strategic alignment between industrial, energy, and trade policies. The EU has committed to achieving climate neutrality<\/strong> by 2050, with an intermediate goal of reducing emissions by ninety percent by 2040. However, high energy costs and dependence on fossil fuel imports threaten the competitiveness of European businesses.<\/p>\n\n\n\n

To mitigate these risks, the Commission has developed an Affordable Energy Action Plan<\/strong>, which will help reduce costs by increasing the use of renewable energy and improving the integration of the European energy market. At the same time, the Clean Industrial Deal<\/strong> will support the transformation of energy-intensive industries, such as steel and chemicals, by encouraging the adoption of low-emission technologies. Another key element will be the promotion of the circular economy. Currently, the European reuse market is valued at approximately thirty-one billion euros but could reach one hundred billion euros by 2030, creating over five hundred thousand new jobs. To stimulate this growth, the EU will introduce a Circular Economy Act<\/strong> to increase investment<\/p>\n\n\n\n

3. Reducing strategic dependencies and strengthening economic security<\/strong><\/p>\n\n\n\n

In an increasingly unstable geopolitical context, the EU must safeguard its economic security by reducing its reliance on external suppliers for critical raw materials and advanced technologies. Europe is currently vulnerable to supply chain disruptions, particularly in the semiconductor, rare earth, and essential pharmaceutical sectors.<\/p>\n\n\n\n

To counter these vulnerabilities, the Commission has launched a Joint Procurement Platform for Critical Raw Materials<\/strong>, which will allow member states to coordinate supply procurement and mitigate the risks of shortages. Additionally, the Critical Medicines Act<\/strong> will strengthen domestic production of essential medicines to reduce dependence on non-EU suppliers. Finally, the defense sector will play a central role in the EU\u2019s economic security strategy. The EU remains fragmented across multiple national defense systems, with insufficient investment in military research and development. To address this issue, a European Defence White Paper<\/strong> will be published, outlining the necessary actions to create a unified defense market and stimulate technological innovation in the military sector.<\/p>\n\n\n\n

4. How Was the Initiative Received in the Czech Republic?<\/strong><\/p>\n\n\n\n

The European business community played a significant role in shaping the Competitiveness Compass, with contributions from various organizations, including the Czech Chamber of Commerce<\/strong>.<\/p>\n\n\n\n

Among the key demands put forward by the Czech Chamber of Commerce are:<\/p>\n\n\n\n