A New Paradigm for EU Competitiveness
Mario Draghi, a distinguished European economist and former president of the European Central Bank and an Italian case, has repeatedly shaped key policies that have influenced the European economy. His latest initiative is Report on the Future of European Competitiveness(EU competitiveness: Looking ahead), which he presented to the European Parliament in September 2024.
The report is aimed at European legislators, businessmen and the general public, with the aim of highlighting the strategies that Europe needs to implement to maintain its competitiveness in a world where technological change and geopolitical shifts bring many new challenges, and Europe is increasingly lagging behind in addressing them.
In his report, Mario Draghi first clearly highlights the problems facing the European economy. These include slowing growth, high energy costs, technological backwardness and dependence on foreign suppliers of key raw materials.
Despite all the challenges, Mario Draghi believes that Europe can remain competitive, but only if it adopts comprehensive reforms that will stimulate innovation, cut red tape and accelerate digitalisation and independence and the green transition. Otherwise, Europe will slowly but steadily lose competitive advantages on the global stage. Many of its recommendations are consistent with the proposed amendments contained in the Programme of the Slovenian Technology Forum.
Innovation breakthrough and growth of the high-tech sector: Mario Draghi warns that Europe lags far behind the US and China in terms of innovation, which affects its long-term competitiveness. In 2021, European companies spent about 270 billion euros less on research and development (R&D) than American companies. This is why Europe needs more high-tech companies and better commercialisation of scientific innovation.
Among the main recommendations are a single regulatory environment, increasing public funding for innovation and improving the innovation ecosystem. For the latter, he says that Europe must promote new technologies and technology start-ups that move from research laboratories to the economy. Among other things, Draghi proposes the introduction of a special legal status for innovative companies, which would simplify procedures and facilitate the innovation transition and growth and development in the EU single market.
Investing actively in human resources: Mario Draghi warns that a properly educated workforce is key to a successful digital transformation and green transition. Technological progress must be accompanied by the competence of the workers who will develop and use these technologies. Therefore, greater investment in education and reduction of brain drain are essential. In addition to investing in education, the need to facilitate procedures for the recruitment of highly qualified foreigners is underlined, which is key to strengthening European competitiveness and closing the knowledge and skills gap.
“Technologies are only as good as the people who design, produce and manage them.” — Mario Draghi
Increase in public and private investment: Even more significant and ambitious is the proposal, if not the call, that in order to achieve the objectives of the digital transformation and the green transition, and to strengthen European competitiveness, it is necessary to increase investment by around €750-800 billion per year. This would increase the share of investment in GDP by 5 percent, at a level not seen in Europe since the 1960s and 1970s. Specific measures include a single European capital market, which will allow a better flow of private capital to innovative and sustainable projects.
The new freedom of the European common market
Enrico Letta, former Italian Prime Minister and now President of the Jacques Delors Institute, is the second in line invited by the European Council and the European Commission to draw up their views and recommendations on the Common European Market. His report entitled”Much more than a market” highlights three pillars: speed, security and solidarity. They will strengthen the single market, ensuring a sustainable, sustainable future and prosperity for EU citizens.
In the report, Lett's proposal for a new, fifth freedom of the new single market stands out. He says that the fundamental four freedoms - the free movement of people, goods, services and capital that were in force in the 20th century - no longer reflect the evolving dynamics of the market, which is increasingly shaped by digitalization, innovation and the uncertainties associated with climate change and its impact on society.
He mentions that the distinctions between products and services are less and less, the two categories are increasingly intertwined if we just think about all aspects of digital development, opportunities, but also the dangers of the circular economy.
It therefore mentions a new, fifth freedom for the new European common market, namely the freedom to strengthen research, innovation and education in the single market, which would greatly accelerate developments in the fields of research and development, the use of data, competences, artificial intelligence, quantum computing, biotechnology, biorobotics and space.
All these areas could benefit greatly from the inclusion of the fifth freedom in the framework of the single market, the freedom to explore, study and create for the benefit of humanity without disciplinary or artificial boundaries and restrictions. This is linked to the freedom to contribute to solving societal challenges such as climate change and biodiversity loss and their impact on the planet, people and cultural heritage.
https://www.consilium.europa.eu/media/ny3j24sm/much-more-than-a-market-report-by-enrico-letta.pdf
EU Inc. — the new 28th virtual EU Member State
Of particular interest is the idea of establishing within the EU 28th virtual EU Member State(i.e. 28thregime), under which small and medium-sized enterprises and start-ups could set up their new businesses and thus operate more easily throughout the Union, i.e. EU Inc. following the example of Delaware.
It was also interesting to hear the presentation of the candidate for the new Commissioner for Startups, Science and Innovation, who mentioned as one of the priorities the creation of the so-called new regime — the 28th virtual EU Member State.
This initiative is also supported by eu/acc, which is a decentralised community movement to accelerate progress in Europe through innovation, technology and a European positive mindset. At the Slovenian Technology Forum, we established contacts with them some time ago, because we share and support such ideas and proposals and would really like to see them implemented in practice.
It does not take many words to conclude, each for himself and all together we must get down to work, because in the end only the results count.
You can learn more about our program download here.
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