EU employers hail “Competitiveness Compass” as a timely step to reignite Europe’s economic engine

29 January 2025 - The Employers' Group of the European Economic and Social Committee welcomes the European Commission's Competitiveness Compass as a critical and timely step to reignite Europe’s economic engine.

"Competitiveness is finally on the EU political agenda," said Stefano Mallia, President of the EESC Employers' Group. "If the Green Deal defined the last legislative term, the Competitiveness Compass now charts the EU’s course for the next five years, ensuring that all policies align to enhance competitiveness."

EU employers have long advocated for an overarching competitiveness agenda, and they welcome the articulation of the Compass on three pillars - closing the innovation and productivity gap, marrying decarbonization with competitiveness, and reducing dependencies to secure supply chains. These are critical to ensuring that Europe can compete globally, attract and retain talent, and foster breakthrough innovations.

"The ultimate success of the Competitiveness Compass hinges on the development of concrete measures, actionable roadmaps, and their timely implementation," said Mallia. "Key initiatives such as the Omnibus Simplification Package, the Clean Industrial Deal, and the Horizontal Strategy to deepen the Single Market will play a decisive role in determining its success. Nonetheless, as we have emphasised before, rebranded strategies and catchy titles alone cannot shield us from the challenges ahead."

For example, simplifying the regulatory framework is the first and most urgent step. Reducing burdensome bureaucracy and promoting speed and flexibility are essential. For too long, European businesses have struggled with overcomplexity and sluggish decision-making.

"Bureaucratic burden reduction has been promised again and again and we are still waiting for the Commission to deliver on its promises, for instance with regard to the reporting obligations," said Sandra Parthie, EESC Section President for the Single Market, Production and Consumption. Parthie also underlined that we need a meaningful implementation of the competitiveness check, so that new legislative and regulatory measures support, rather than hinder, business growth and competitiveness.

The Employers’ Group also supports the EU emphasis on fostering innovation through a robust Capital Markets Union and addressing structural barriers to unlock Europe's potential in deep tech, clean energy, and advanced manufacturing, while creating a fertile ecosystem for start-ups and scale-ups.

"The EU has achieved much and remains a cornerstone of economic strength. As businesses adapt to new challenges, so must the Union, with all its 27 member states. However, without an urgent shift in gear, the EU risks losing its position as an economic powerhouse, an investment destination, and a manufacturing centre," claimed Mallia, calling for bold, joint and swift action to translate the Commission's vision into tangible outcomes.

European businesses are and will remain part of the solution. The EESC Employers' Group is ready to work with the Commission and all stakeholders to ensure that this renewed focus on competitiveness delivers real and lasting benefits for all Europeans.

Note to the editor:

The EESC Employers' Group released this week its priorities for the current mandate (2024-2029) "Unlocking competitiveness for shared prosperity".

For more information, please contact:

Daniela Vincenti, Communication Adviser

daniela.vincenti@eesc.europa.eu

+32 497 412095