Brussels (Brussels Morning Newspaper) – European Commission President Ursula von der Leyen said that European Union members must work together quickly to set a strategy in place to assist the coalition compete against global economic powerhouses like the U.S. and China.
Von der Leyen introduced the EU’s so-called Competitiveness Compass. It is a 26-page document outlining policy reforms and the latest pieces of legislation the EU Commission intends to table over the next five years to promote the region’s economy and attract investment.
Europe has everything it needs to succeed in the race to the top. But, at the same time, we must fix our weaknesses to regain competitiveness,
von der Leyen expressed on January 29, 2025, as the EU executive revealed a long-awaited proposal to promote the region’s industry.
She further stated the plan turns policy recommendations created by ex-Italian Prime Minister and European Central Bank President Mario Draghi into an actionable road map.
So now we have a plan,
she stated.
We have the political will. What matters is speed and unity. The world is not waiting for us. All Member States agree on this. So, let’s turn this consensus into action.
How does the Compass address Europe’s economic weaknesses?
In addition, the reduction in bureaucratic barriers for businesses is a central theme of the Compass. The EU wishes to simplify regulations by harmonizing EU and national rules with, particularly, sustainability legislation that has been heavily criticized as overly complex.
There is a plea to move to an innovation-driven economic model. It emphasizes that Europe needs to become more productive and increase investment in research and development, especially in technology sectors in which it has fallen behind others, such as the U.S. and China.
The Compass also proposes creating a platform for the joint purchase of critical raw materials, aiming to reduce reliance on external suppliers, particularly from China. This is part of a broader strategy to bolster Europe’s industrial base and ensure supply chain security.
