EESC CORNER: EUROPE'S COMPETITIVENESS AT A CROSSROADS: MARIO DRAGHI'S VISION AND THE URGENT NEED FOR ACTION

EESC CORNER: EUROPE’S COMPETITIVENESS AT A CROSSROADS: MARIO DRAGHI’S VISION AND THE URGENT NEED FOR ACTION

In September, Mario Draghi, former President of the European Central Bank, published his long-awaited report on his personal vision for the future of European competitiveness, which will play an important role in shaping future EU policies and strategies. Among other things, he emphasizes that raising the EU’s competitiveness is necessary to reignite productivity and sustain growth in this changing world. Europe has the foundations to be a highly competitive economy, including the Single Market of 440 million consumers and 23 million companies, accounting for around 17% of global GDP. However, slowing growth in the EU, driven by weakening productivity growth, calls into question Europe’s ability to fulfil its ambitions. It is clear that the EU is lagging behind its global competitors and must act quickly to regain its competitive edge, among other things.

Together with other representatives of employers gathered in the Employers´ Group of the European Economic and Social Committee, we have been asking for a competitiveness agenda for years. The Employers´ Group welcomes Mario Draghi´s report on the future of EU´s competitiveness while emphasizing that now we need an action plan for a „radical change“ and political will as there is no time to waste.

Competitiveness was also the focus of my speech during the summer plenary debate of the European Economic and Social Committee, which focused on the priorities of the Hungarian Presidency of the Council of the European Union. During the debate with János Bóka, Minister of European Union Affairs of Hungary, I emphasized that now is the time to give life and substance to the new European Competitiveness Deal.

To do so, I highlighted three priority areas for action where employers count on the EU institutions to work together to do the following tasks.

First, to ensure that there is less, better and simpler regulation within a well-integrated Single Market. Among others, we need to step up burden reduction and use the momentum to develop a comprehensive Single Market strategy.

Second, to strongly support rules-based trade and strengthen the EU´s open strategic autonomy. In other words, we need to become more resilient without turning our backs on the world.

Third, to develop an ambitious industrial strategy to complement the Green Deal and help the EU decarbonize without deindustrialisation. The right investment conditions, faster permitting and lower energy costs will be among key factors to securing our competitive and resilient future.