The EU has a problem. In recent years, the Union has been badly behind the United States in economic growth, productivity and innovation, and China is also breathing in the neck.
According to companies, one of the most important reasons why the EU has been on the back is an ever-increasing regulatory burden: two out of three companies believe that the continuous increase in EU regulation is a central obstacle to long-term investments.
In particular, green and digital transition regulations made in recent years have been criticized.
The Commission has heard companies’ concerns.
At the heart of the 27-page competitiveness compass released on Wednesday is the reduction of regulation. It is intended to be done so that companies’ costs are concretely reduced.
Although the regulation is to be simplified, the Commission is still assured that the competitiveness compass is still heading for sustainable growth and well -being.
In addition to cutting regulation, it will be better coordinated.
Each commissioner will continue to have a regular dialogue with stakeholders and companies to understand the problems of enforcement.
The Commission has already announced that companies’ reporting obligations will be reduced by 25 % from larger companies and by 35 % from small and medium -sized companies. Now, the promise is tightened so that all administrative costs for companies must be reduced by 25-35 %.
The Commission will also introduce a new category between SMEs and large companies, which, like SMEs, are subject to mild regulation.
Simplification of regulation begins in February with a so-called Omnibus composition proposal, which focuses on eliminating the sustainability reporting of companies with the green transition.
The Commission also intends to create a digital wallet for companies to make it smoother with public administration.
Wide market
Improving competitiveness is essentially about streamlining the functioning of the internal market. 27 There are still boundaries between the Member State, which are challenging and expensive for companies operating in the EU.
The competitiveness compass states that the Commission intends to ensure that the enforcement of legislation in Member States is more harmonized.
One concrete action is also proposed by the EU General Legislative Framework (28. Regime), which companies could comply with if they wish, instead of the legislation of 27 different Member States.
Energy is also central to strengthening the competitiveness of companies.
Due to the Russian offensive war and the green transition, European companies are now paying much more for the energy they use than US and Chinese companies.
In order to smoothing energy prices, the Commission’s medicine is the implementation of the Energy Union, which will be presented in late February.
Innovation gap
At the heart of the Commission’s compass is the reachable of the innovation shaft, especially in the United States.
The technology sector is the most important thing for the gap, as 70 % of the new value of the economy over the next 10 years is created by strengthening digitalisation.
In particular, the strengthening of artificial intelligence projects is important for the competitiveness of the EU.
The goal is for the traditional industry to be able to introduce more artificial intelligence.
In order to strengthen strategic key sectors, the Commission is proposing a new competitiveness coordination, so that Member States operate in accordance with common goals, for example in digital and artificial intelligence sectors.
Funding for new competitiveness editions is to be obtained from both the public and private sector.
Private funding is to be triggered, for example, by reforming capital and financial markets.
The compass suggests that the various financial equipment related to the competitiveness of companies is brought together and to speed up the financing decisions of the companies.
As the actions are in a hurry, the Commission’s goal is to use existing financial instruments to strengthen the competitiveness of strategic sectors, as well as EU budget cohesion money.
The EU’s multi -year financial framework, starting in 2028, is becoming a new competitiveness fund that focuses on strengthening the competitiveness of strategic sectors.
A new debt instrument to strengthen competitiveness in the Commission’s compass is not directly presented.
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Competitiveness compass
The competitiveness compass is a wide strategy paper that guides the Commission’s work for the next five years.
Compass visits how the EU achieves sustainable growth and well -being, but is kept at the center of the companies’ competitiveness.
The compass sets the practical frames how and on what schedule in different sectors, such as industry and technology, will work to improve competitiveness.
There are three key pillars in the competitiveness compass:
1. Current of the innovation shaft.
2. Road map for low carbon and competitiveness.
3. Financial safety, where strategic addictions and global cooperation are central.
In addition to three pillars, the Commission emphasizes the streamlining of the internal market, strengthening capital markets and getting skilled workers in Europe.