The European Union is stepping up efforts to boost its competitiveness by cutting bureaucratic hurdles, lowering energy costs and increasing investments in key sectors such as artificial intelligence (AI) and technology to better compete with China and the US.
On Wednesday, the European Commission released a policy document titled A Competitiveness Compass for the EU outlining a five-year strategic framework for economic growth.
The bloc aims to position itself as a global hub for technological innovation, new services and clean energy production 鈥� an 鈥渆conomic powerhouse.鈥� It plans to close the gap with its rivals by fostering high-tech entrepreneurship and addressing barriers hindering the growth of emerging technologies.
The commission will introduce the 鈥淎pply AI Strategy鈥� to integrate AI into key sectors and strengthen Europe鈥檚 competitive edge.
鈥淓urope needs to be at the forefront of innovation in tech sectors that will matter in tomorrow鈥檚 economy 鈥� such as AI, semiconductors and quantum technologies, advanced materials, biotechnologies, clean energy technologies, robotics, space technologies, connected and autonomous mobility, and others 鈥� to enhance technological sovereignty and competitiveness,鈥� the document says.
To ease business operations, the EU will simplify company, labor, tax and insolvency laws while reducing corporate costs. It will also address high and volatile energy prices by prioritizing access to clean and affordable energy.
The bloc will implement a competition-driven approach to decarbonization through the Clean Industrial Deal, aiming to become a leading center for clean technology manufacturing and circular business models.
The Affordable Energy Action Plan will outline steps to lower energy costs, while the planned Industrial Decarbonization Accelerator Act will fast-track permits for energy-intensive industries transitioning to clean energy. Additional action plans will target key sectors such as steel, metals and chemicals.
To reduce economic dependencies, the EU will pursue new trade and investment agreements to secure global supplies of raw materials, clean energy, sustainable fuels and green technologies.
The commission also pledged to simplify regulations, modernize the Single Market鈥檚 governance framework and remove trade barriers within the bloc.
Additionally, the EU will establish the European Savings and Investments Union to finance competitiveness by introducing new savings and investment products, providing venture capital incentives and facilitating cross-border investments.
EU funding will be allocated more strategically, with a focus on skills development and high-quality employment. The commission will coordinate with member states to implement these objectives, identify critical cross-border projects and direct investments efficiently.
- 鈥楧ays of relying on cheap Chinese labor and Russian energy are gone鈥�
Speaking at a press conference in Brussels on Wednesday, European Commission President Ursula von der Leyen acknowledged that Europe continues to 鈥渓ag behind the US and China鈥� and is 鈥渉eld back by weaknesses.鈥�
鈥淚n a nutshell, over the last 20 to 25 years, our business model has basically relied on cheap labor from China, presumably cheap energy from Russia, and partially outsourced security and security investments. Those days are gone,鈥� she said.
鈥淲e must fix our weaknesses to regain competitiveness,鈥� she added.
Von der Leyen emphasized that the Competitiveness Compass will serve as the EU鈥檚 roadmap for strengthening economic security, reducing dependencies and boosting global competitiveness.
She also announced that the commission will launch an AI strategy this year to accelerate AI adoption across key industries.
Reporting by Ata Ufuk Seker in Brussels
Writing by Emir Yildirim
Anadolu Agency
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