Europe is falling behind on competitiveness and needs to address the shortcomings of its single market urgently, but in a way that benefits both business and Europeans.

The EESC January plenary held a debate on European competitiveness and the future of the internal market. The EESC opinion at the centre of this debate was requested by the Belgian Presidency of the EU, which has pledged to use its six months to focus on competitiveness and the single market. The opinion will also help shape Enrico Letta's high-level report on the future of the single market, set to be presented to the European Council in March.

In it, the EESC stresses that the internal market needs to rise to the challenges of a very different world to the one for which it was created back in the 1990s. As a result, the EU is facing multiple pressures: maintaining a level playing field while subsidising its industries to help finance the green transition; keeping jobs in Europe while ensuring EU businesses stay competitive; and securing raw materials while upholding labour and environmental standards.

Rapporteur Sandra Parthie said: "The single market has helped make the EU one of the most powerful trading blocs in the world – but this powerful position is about to be eroded. What we propose in our opinion is to focus on the development of a European industrial policy that is not the sum of 27 national industrial policies, but rather a truly European view of our industrial potential".

Speaking at the debate, Markus Beyrer, Director General of Business Europe, said: "We have an issue with competitiveness. We are falling behind our global competitors, and the single market is one of the tools available to us to remedy this. The goal is to produce the margin we need to feed the European model as we know it, including the social aspects".

Ludovic Voet, Confederal Secretary of the European Trade Union Confederation (ETUC), stressed that the European social contract is the basis of the single market and that contract needs to be reinforced, saying: "In our competitive system, businesses have to pay fair salaries, offer good jobs and not harm the environment. Europe has to keep the momentum for a just green transition".

The EESC opinion includes a proposal to appoint a commissioner for services of general economic interest (SGEI) in the next Commission, with a five-year plan to develop secure, good-quality and sustainable SGEI. These account for 25% of EU GDP and 20% of total employment, and cover key sectors such as transport, energy, communications, access to water and sanitation. However, they are also very important in healthcare and social services. (dm)