European Commission competitiveness compass
- The competitiveness compass will steer EU competitiveness policy for the 2024–2029 mandate and implements recommendations from Mario Draghi’s report.
- It targets three core areas—innovation; decarbonisation and competitiveness; and security and resilience—with measures such as ‘Apply AI’, ‘AI gigafactories’ and action plans for advanced materials, quantum, biotech, robotics and space.
- Decarbonisation measures include an affordable energy action plan, a Clean Industrial Deal, an industrial decarbonisation accelerator to extend accelerated permitting, and action plans for energy‑intensive sectors including steel, metals and chemicals.
- Cross‑cutting actions will simplify regulation, reduce single‑market barriers, establish a European savings and investment union, promote skills via a union of skills, introduce a competitiveness coordination tool, and pursue Clean Trade and Investment Partnerships plus a European preference in procurement for critical sectors.
Objective
The European Commission has published a competitiveness compass to translate the recommendations of Mario Draghi’s report into concrete actions guiding EU competitiveness work over the next five years. The compass aims to maintain the EU’s social and market strengths while ensuring Europe becomes the place where future technologies and clean products are invented, manufactured and marketed, all while pursuing climate neutrality.
Core areas and initiatives
The framework focuses on three pillars: innovation; decarbonisation and competitiveness; and security and resilience. Innovation measures include industrial AI initiatives (‘Apply AI’, ‘AI gigafactories’), an EU start‑up and scale‑up strategy, and action plans for advanced materials, quantum, biotech, robotics and space to close the innovation gap and spread technology adoption across businesses.
Decarbonisation and trade
To address energy cost volatility and support a competitiveness‑driven transition, the Commission proposes an affordable energy action plan, a forthcoming Clean Industrial Deal, an industrial decarbonisation accelerator to extend accelerated permitting for sectors in transition, and targeted action plans for energy‑intensive sectors such as steel, metals and chemicals. The compass also outlines Clean Trade and Investment Partnerships to secure supplies of raw materials, clean energy, sustainable transport fuels and clean tech.
Cross‑cutting measures and mandate
Five cross‑cutting activities underpin the plan: drastic simplification of regulatory burdens; a horizontal single market strategy; a European savings and investment union; a union of skills to promote quality jobs; and a competitiveness coordination tool to better align EU and national policies. The compass is the Commission’s first major initiative of the 2024–2029 mandate.
Source: European Commission