The European Union has announced a Plan with which in five years it seeks to boost competitiveness and innovation in the regionalthough always with present sustainability. The President of the European Commission, Ursula von der Leyenhas been in charge of presenting the plan, which they have called Competitiveness Compasswhich establishes a route so that the EU is the point where they develop and manufacture products and services, while becoming the first continent to become climatic neutral.
From the commission they have recognized that in the last two decades the EU has been left behind with respect to other of the world’s main economies, which have blamed a gap in productivity growth.
In addition, they have assured that the region has everything you need to reverse the trend, which goes from talented and trained professionals, to capital and social infrastructure, through the particularity that the single market gives it, which they also seek to boost. Of course, to achieve this they point out that they have to act urgently, and address obstacles and weaknesses.
The three base pillars to boost competitiveness
According to the Draghi report, there are three pillars that the EU has to use as a basis for promoting competitiveness: Close the innovation gap, design a joint roadmap for decarbonization and competitiveness, and reduce dependencies and increase security.
To move forward in the first, the Commission wants to develop an attractive space for innovative startups, boost industrial leadership in high growth sectors using avant -garde technologies and promote the dissemination of technologies in SMEs and consolidated companies.
Among the measures proposed by the European Commission in this regard is the creation of «Gigafactories of AI»in addition to initiatives focused on the application of artificial intelligence to promote the development and adoption of AI at an industrial level in key sectors, which they have called Apply AI. On the table they will put, as confirmed, action plans dedicated to advanced materials, quantum computing, biotechnology, robotics and space technology.
The Commission will enable a specific strategy for startups and its escalation in the EU, which will address the obstacles that are newly created companies to advance and climb. It will also lead to the implementation of a specific legal regime, which will simplify the applicable norms in each case, including relevant aspects of corporate laws, those dedicated to insolvency, work and taxes. In short, they seek that innovative companies can benefit from a single set of standards to invest and operate anywhere in the single market.
As for decarbonization without penalty of competitiveness, the commission has identified that one of the greatest challenges faced by companies are the high and volatile energy prices, and the plan addresses the aspects in which they can intervene for Facilitate access to clean and affordable energy.
Among the measures destined to achieve this is Clean Industrial Dealan agreement that will establish an approach to decarbonization with competitiveness as a motor, designed for the EU to become an attractive area for manufacturing, and to promote clean technology and circular business models. Another affordable clean energy plan, which they have called Affordable Energy Action Planwill focus on reducing prices and energy costs.
A third decarbonization acceleration plan, the Industrial Decarbonisation Accelerator Actwill expand rapid obtaining from licenses to sectors and transition. In addition, competitiveness compass provides custom action plans for intensive sectors in terms of energy, such as steel, metals and chemicals.
Regarding the reduction of excessive units, the EU will support agreements to achieve it, thanks to the network of commercial agreements that it has with 76 countries. But to increase diversification in supply chains, a package of investment and trade agreements will be launched, which seeks to ensure the supply of raw materials, clean energy, sustainable fuels for transport and clean technologies .
Complementary areas of action to the pillars
These three pillars will have as complement another five areas of action: Simplification, reduction of barriers for the single market, financing of competitiveness, impulse of quality skills and jobs, and improvement in policy coordination nationally and the EU.
The EU wants to drastically reduce administrative and regulatory loads. It also leads to getting the procedures to access EU funds easier, fast and light. In addition, they intend to do the same with the administrative decision making by the EU. The objective of the plan is to reduce a minimum of 25% of administrative charges for companies, which in the case of SMEs will be 35%.
The impulse to the single market goes through a modernization of its governance framework, through a strategy that eliminates internal barriers and avoids the creation of new ones. In addition, the Commission has promised to make the processes of establishing faster and more accessible standards. Above all, for startups and SMEs.
On the other hand, the Commission will create what it has called the European Union of Savings and Investments, which will be intended to create new investment and savings products, offer incentives for risk capital and ensure that investments are distributed without barriers to the EU. There will also be an EU budget with a new approach, focused on facilitating access to EU funds in line with the priorities of the region.
In addition, an initiative will be launched for the development of a skill group, focused on investment in training, adult and continuous training, in the creation of skills that serve for the future, talent retention, mobility fair and the attraction and integration of talent from third countries.
All these plans and initiatives, this, would have many problems to be launched if coordination between countries and the EU is not improved in terms of policies to be adopted. Therefore, the Commission plans to launch an entity dedicated to the coordination of competitiveness, which will work for the member states to ensure that the EU objective policies are implemented at the national level, as well as to identify the projects that may be of interest to the EU, and to facilitate that related reforms and investments are carried out.
Besides, A competitiveness fund will be launched that will replace the various financial instruments of the EU that have similar objectives, and that will offer financial support to the implementation of actions that the Competitiveness Coordination Entity is responsible.
