Europe’s competitiveness is dependent on a quilt solution

The poor competitiveness of Europe in relation to the United States and China has been talked throughout last fall since the Italian Mario Draghi published his report. In the past, the EU has been overwhelming for years of excessive administrative burden and bureaucracy.

At the end of January, the Commission published its proposal on what it intends to solve the problem. The Commission published a competitiveness strategy, a so -called competitive compass with several suggestions.

One of the Commission’s objectives is to reduce the administrative costs of companies, including simplifying sustainability reporting, diligence obligations, and definitions of endurance, which have been decided last season as part of the Green Growth Program.

The Commission also wants to improve the functioning of the internal market, for example by monitoring that Member States do not cover EU laws with extra regulation of national level.

The Commission also wants to create a so-called 28. Regimi, or EU-level general legislative framework that applies throughout the EU and whose principles can comply with the companies instead of adapting to each of the 27 Member States. Creating a framework for corporate, bankruptcy, labor and tax law is very difficult, but it can be an effective way to promote the internal market.

In addition, the Commission wants to promote investment in low -carbon technology and the achievement of EU climate targets, and build electricity networks, for example, to calculate electricity prices.

However, the Commission does not propose a new EU -level fund or new co -debt.

Instead, the Commission wants to promote the activities of the European capital market. It is a very important goal that has been made in the past – without much success. The European Investment Bank can do its part, but its resources are limited.

In addition, the Commission’s idea is that the EU budget, especially cohesi money, could be directed to new projects, such as critical technologies.

The Commission also speaks for the “flexible and supportive” state aid policy. This should mean that Member States will continue to compete for the green transition through state subsidies.

In order to prevent the State aid competition from being quite wild, the Commission proposes coordination of state reforms and investments.

The Commission’s package is building Dragh’s proposals, but does not propose new EU financial packages. With its proposals, the Commission will deceive the start -up negotiations on the EU budget for 2028-2034.

Earlier in February, EU leaders agreed tentatively from the fact that new co -debt for the EU’s defense could be taken.

Thus, the end result seems to be a typical EU patchwork solution: still criticized state subsidies, some new co-debt and the re-channel for the EU budget money.

Balancing between political realities can bring reconciliation, but it remains to be seen whether it brings competitiveness to the EU. Hopefully even bureaucracy can be eliminated.