Competitiveness in Europe, the expected measures

The European Commission will present its Competitiveness Compass next Wednesday (29 January): a roadmap, based on Mario Draghi’s report which outlines the main measures to relaunch the economic competitiveness of the Union. The measures, grouped into three main pillars and accompanied by horizontal actions, aim to bridge the innovation gap to promote the decarbonisation and to reduce strategic dependencies.

Below is the chronology of the key provisions indicated in the draft which the AGI has reviewed: The Omnibus proposal for simplification is scheduled for 26 February: an intervention to simplify EU regulation, reducing the burdens on businesses and SMEs.

The objective is to reduce administrative burdens by 25% for businesses and by 35% for SMEs. Among the new features, a new definition of “small mid-caps” which will allow 31 thousand companies to benefit from simplified rules.

First Quarter 2025

• Clean Industrial Deal e Affordable Energy Action Plan: two initiatives to lower energy costs, improve access to renewable sources and promote the electrification of European industries. Tools will be introduced to incentivize long-term contracts and new tariff methodologies to reduce system costs.
• Strategic Dialogue on Automotive: The strategic dialogue with the European automotive sector will begin on 30 January to address the challenges of transition, access to raw materials and global competitiveness. The comparison will lay the foundations for an industrial plan for the sector.
• Union of Skills: a plan to fill skills gaps in strategic sectors, focusing on continuous training, skilled migration and improving cross-border recognition of skills.
• White Paper on European Defence: a strategic document to improve coordination between Member States in the defense sector, strengthening European industrial capacity and technological innovation.
• Preparedness Union Strategy: a plan to strengthen the EU’s resilience against future crises, with close public-private collaboration to prevent critical disruptions in supply chains. – Vision for agriculture and food: a plan to ensure long-term competitiveness and sustainability within planetary limits for the agricultural and food sectors, ensuring thriving rural areas, food security and resilience.

Second Quarter 2025

• Start-up and Scale-up Strategy: the plan aims to overcome the obstacles that slow down the birth and growth of European start-ups, improving access to financing, collaborations between universities and industry and the mobility of talent.
• Eu Quantum Strategy: an initiative to consolidate European leadership in quantum technologies, such as secure computing and communications. Joint programs will be created between Member States and the private sector.
• New State Aid Framework: a review of state aid rules to allow more targeted interventions in key sectors for the green transition and to support industrial competitiveness.
• Water Resilience Strategy: a series of measures to improve the management and sustainability of water resources, crucial for addressing the impacts of climate change.
• European Savings and Investment Union: a plan to mobilize private capital and direct it towards strategic and innovative investments, also addressing the fragmentation of the European financial market. A Single Market Strategy is also planned. Furthermore, the establishment of a platform for the joint purchase of critical raw materials is also planned – between the second and third quarters.

Third Quarter 2025

• European Strategy for Research and Technology Infrastructures: a platform that will support the construction of high-level research infrastructures, also accessible to SMEs and start-ups, to stimulate large-scale innovation.
• Apply AI Strategy e Data Union Strategy: actions to promote the use of artificial intelligence in industry and facilitate the sharing of public and private data. Tools are key to accelerating digitalization and supporting new business models.
• Sustainable Transport Investment Pact: strategic investments to develop sustainable transport infrastructure, with a focus on low-emission fuels and charging systems.
• Space Act: a law to boost the European space sector, harmonizing regulations between member states and attracting investments to support the growth of a key sector for the future.

Fourth Quarter 2025

• AI Continent Initiative: Artificial intelligence factories (‘mega AI factories’) will be established to improve the EU’s computational capacity and support start-ups and research.
• European Biotech Act: a regulatory framework that will stimulate innovation in biotechnology, with applications ranging from healthcare to sustainable agriculture.
• Chemicals Industry Package: a package to improve the competitiveness of the chemical industry, addressing complex regulations and supporting the green transition.
• Digital Networks Act: Measures to improve digital connectivity in Europe, with a focus on 6G and network infrastructure integration.
• Quality Jobs Roadmap: a plan to improve working conditions, encourage gender equality and reduce the employment gap in strategic sectors.

Scheduled for 2026

• Circular Economy Act: a plan to create a single market for recycled materials, reducing dependence on virgin raw materials and stimulating the circular economy.
• Advanced Materials Act: a strategy to promote innovative advanced materials, crucial for the EU’s industrial and technological future.
• European Climate Adaptation Plan: A series of measures to strengthen climate and infrastructure resilience, addressing extreme events such as floods and droughts.
• Revision of Public Procurement: a review of the Public Procurement Directive to protect strategic supply chains and simplify the rules for innovative start-ups.
• 82nd Business Regime: it will simplify applicable rules and reduce costs, including aspects of insolvency, employment law and tax law.