The European Commission unveils today a major strategic document, the “competitiveness compass“, aimed at guiding the economy of the European Union for the next five years. In a gloomy economic context marked by weak domestic and external demand, high energy prices, and growth prospects far below those of the United States and China, this plan aims to be ambitious. As businesses and trade unions carefully scrutinize its pages, what are the main orientations? And what can we realistically expect from it for the economic future of the old continent?
A strategy to revitalize the European economy
Four months after the Draghi report, which already laid the groundwork for an economic renewal, the “competitiveness compass” stands out as the “North Star“ of the new Commission led by Ursula von der Leyen. Despite leaks that preceded its publication, this official document confirms several trends already anticipated. Firstly, emphasis is placed on a massive deregulation, euphemized under terms such as “reducing administrative burdens” or “bureaucratic simplification”. For the Commission, easing the regulatory burden on businesses is crucial to boost productivity and innovation. At the same time, there is also discussion of bridging the innovation gap, developing a joint strategy for decarbonization and competitiveness, addressing skills and labor shortages, and of course, simplifying procedures.
But what does this simplification actually mean? Concerns persist regarding the possible repercussions on transparency and diligence. The document mentions an “omnibus package” that could impact these areas. For trade unions, vigilance is essential. They fear that this plan, as well as the proposal for “28th framework” regimes, may hinder workers’ rights.
The controversial agreement on regulation
One of the most debated aspects of the compass is undoubtedly the question of unification, particularly in the financial markets sector. Brussels insists on centralized supervision, a proposal that divides opinion. Member states fear it may give a disproportionate advantage to France, where the financial watchdog, ESMA, is based. Moreover, the harmonization of insolvency laws is mentioned to promote cross-border investment, but bureaucratic obstacles and national interests hinder this ambition.
Towards an assumed European preference
In a world where the United States and China adopt protectionist measures, the idea of a “European preference” in public procurement seems logical. However, this could place the EU in a situation of non-compliance with WTO rules. Legally, the challenge is significant, but it reflects a growing awareness of the need for strategic autonomy. The Commission, through this document, seems to consider an adaptation to international trade rules, although the details remain to be specified.
Between expectations and criticism: reactions to the report
Businesses are expected to welcome this compass, particularly the commitment to reduce reporting obligations by 25% and by 35% for SMEs. This unprecedented simplification has long been a demand from the business world. On the other hand, trade unions remain cautious. For them, simplification should not rhyme with regression of social rights. However, the document advocates for the creation of quality jobs and the preservation of the European social model, a difficult balance to maintain.
The Commission defends itself against criticisms highlighting the inaction of recent months. Ursula von der Leyen argues for a thoughtful approach, claiming that the time invested in the development of this document and the future “clean industrial deal” will pay off. She relies on a clear roadmap to energize the European economy. Only time will tell if this bet was justified.
In conclusion, the “competitiveness compass” aims to reposition Europe on the global economic stage. Facing immense challenges and varied expectations, this document represents both a promise and a commitment to European citizens. As the Commission prepares to unveil concrete policies, all eyes remain on Brussels, awaiting tangible actions that will turn these ambitions into palpable economic realities.
