EU Competitiveness Compass: Commission must firmly orientate its compass towards competitiveness
“It is high time for the European Commission to firmly orientate its political compass towards competitiveness. Companies urgently expect clear measures for accelerating innovation, reducing bureaucracy and lowering energy prices in Europe. Only from a position of strength will Europe be able to face the USA and China on an equal footing in this dynamic geopolitical situation.
According to a study commissioned by the BDI, 76 per cent of companies in Germany are concerned about their dependence on Chinese key digital technologies. The European Commission must limit its regulatory zeal regarding digital policies and invest in targeted key digital technologies such as microelectronics and AI. Consequently, the new EU Digital Commissioner plans to focus on improving structural market conditions, accelerating the expansion and strengthening the resilience of digital infrastructures.
Reducing bureaucracy offers growth opportunities at zero cost. Instead of ever more detailed regulations, bans and case-by-case interventions – an expression of a deep mistrust of entrepreneurial activity – market-based framework conditions and entrepreneurial incentives must be strengthened. The omnibus legislation announced by the European Commission, must not only reduce reporting obligations, but also substantially amend the Corporate Sustainability Reporting Directive, the EU Supply Chain Act and the Taxonomy Regulation. Further relief initiatives must follow.
In Europe, industry pays two to three times as much for electricity and three to five times as much for gas as in the USA. An affordable and stable energy supply is essential for the competitiveness of European industry. Necessary short-term measures include a reliable EU state aid framework that enables and supports the necessary relief measures. In the long term, an efficient expansion of the European internal energy market is key to sustainably reduce costs.”
The BDI's comprehensive statement on the Draghi report can be found here Publication.
