New economic ‘compass’ helps EU steer competitiveness challenges

THE European Union “competitiveness compass”, launched last week, might be dismissed as a political gimmick. However, European Commission President Ursula von der Leyen has dubbed the tool as Europe’s economic “North Star” not just for her new team’s first 100 days in office, but also for the next five years.

The reason is the growing recognition that the EU faces an increasing competitiveness challenge vis-a-vis other key world powers, especially the US, with growing pressure to be perceived to put deregulation before decarbonisation in a more business-friendly Brussels.

Indeed, competitiveness is not only the No 1 economic problem facing the bloc, but may even be an existential threat, as former European Central Bank president Mario Draghi highlighted last year in his landmark report.

So, the new compass is a strategy to enhance the bloc’s economic dynamism, which aims to streamline regulations, foster innovation and prioritise European enterprises in public procurement. It outlines key legislative initiatives, including the announcement of the Clean Industrial Deal which will be unveiled on Feb 26.

The compass therefore provides a clearer view of the post-Green Deal regulatory environment from 2025 to 2029. The strategy’s measures, from regulatory simplification to industrial policy shifts, will directly impact investment conditions, supply chain dynamics and market access.

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Publish date : 2025-02-03 13:00:00

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