United in the prosperity and competitiveness: the new priorities of the European Commission
On 18th July, the European Union embarked on a renewed five-year journey under the leadership of Ursula von der Leyen, ushering in a significant and hopeful era. In her address to the Members of the European Parliament, President von der Leyen underscored the theme of "hope" – hope for the future, hope for the next generations, and hope for all of Europe. She acknowledged the current climate of anxiety and uncertainty, recognizing the genuine concerns Europeans have about various instabilities and insecurities. Having acknowledged the perception of a Europe as overly bureaucratic for its citizens, President von der Leyen highlighted the urgency to play out some measures to ease procedures for SMEs. This new strategy will address the bureaucratic challenges faced by SMEs, which are crucial for local job creation. The plan emphasizes coherence, and simplification, proposing new legislation to streamline and consolidate existing laws, reducing regulatory complexity across Member States, and lowering the costs of failure for innovators. A new competitiveness check will ensure future legislation supports small businesses by minimizing administrative burdens while maintaining high standards. These reforms aim to foster a more dynamic and competitive business environment in Europe.
According to this vision, Europe needs to become faster, simpler, more focused, and more united. She called for a Union that supports its people and businesses, acts where it adds value, and mobilises together with clear goals and a collective mission. This mission encompasses EU institutions, national and regional governments, the private sector, social partners, citizens, and civil society.
The new priorities of the European Commission
The political guidelines for the next European Commission mandate emphasize the importance of defence and security, sustainable prosperity and competitiveness, democracy and social fairness, and global leadership while delivering tangible results within Europe. With the new Clean Industrial Plan, which should be implemented in the first 100 days of the new mandate, Europe’s sustainable prosperity and competitiveness will be the keys to tackling the challenges that European companies must face in a turbulent global environment characterised by unfair competition, high energy prices, skills and labour shortages, and difficulties in accessing capital.
Acknowledging the accelerating pace of the climate crisis, President von der Leyen stressed the urgent need to decarbonise and industrialise the economy simultaneously. "We must focus on implementing the existing legal framework for 2030 – in the simplest, fairest and most cost-efficient way," she stated. To this end, a new Clean Industrial Deal will focuse on competitive industries and quality jobs.
The new Clean Industrial Deal
The plan includes:
- Supporting Companies: Simplifying regulations, investing in infrastructure, and ensuring access to cheap, sustainable, and secure energy supplies and raw materials.
- Industrial Decarbonisation Accelerator Act: Assisting industries and companies through the transition.
- Clean Trade and Investment Partnerships: Securing the supply of raw materials, clean energy, and clean technology from global sources.
Europe must lead by example in international climate negotiations and step-up green diplomacy to engage more effectively with non-EU countries on external aspects of EU policies. The Clean Industrial Deal aims to enable greater investment in clean and strategic technologies, as well as in energy-intensive industries. A new European Competitiveness Fund will be part of a reinforced budget in the next multiannual financial framework. This fund will invest in strategic technologies, ensuring that Europe remains at the forefront of technological development and manufacturing. The investment capacity will leverage and de-risk private investments to achieve common goals.
No competitiveness without high-skilled people
There is no competitiveness without high-skilled people. Therefore one of the key priorities of the new mandate concerns the necessity for a radical change in ambition and action across all skill levels and types of training and education. Recognising the importance of people's careers and prospects for competitiveness, it has been announced the establishment of a Union of Skills. This initiative will focus on investment, adult and lifelong learning, skill retention, and the recognition of different types of training to enable people to work across the Union.
The plan includes:
- Improving Basic Skills: Addressing the decline in performance and the lack of qualified teachers in STEM fields through a STEM Education Strategic Plan. This initiative aims to increase the participation of girls and women in STEM education and careers.
- Promoting Vocational Education and Training (VET): Proposing a European Strategy for Vocational Education and Training to boost the number of people with secondary VET degrees, preparing them for the workforce and meeting companies' needs.
The new era under the re-elected President Ursula von der Leyen’s leadership promises a more unified, efficient, and dynamic Europe. By focusing on sustainable prosperity, competitiveness, and joint action, Europe aims to navigate through this period of anxiety and uncertainty, providing hope for a brighter future for all its citizens.