6 September 2023 - The Employers' Group of the European Economic and Social Committee urged EU policymakers to put competitiveness at the centre of the EU agenda and deliver an overarching Competitiveness Agenda.

"In a world shaped by constant transformation […] Europe’s competitiveness must be front and centre in the spotlight, now and in the next institutional cycle," Stefano Mallia, President of the Employers' Group said during the Group's annual flagship event titled Leading the way: A Competitiveness Agenda for a Stronger Europe.
Stressing that old certainties are no longer valid in the face of climate change and AI, Mallia insisted that there is no space for complacency.
"EU businesses are burdened by significant administrative obstacles that hinder their ability to invest and effectively undergo the green and digital transition – he added. These obstacles include onerous, unrealistic and overlapping reporting requirements, cumbersome permitting and licensing procedures as well as administrative complexity, lack of clarity in policies and guidelines, and other administrative barriers."
European Commission Executive Vice-President Valdis Dombrovskis reassured participants that the EU executive had heard the call and started moving in that direction, particularly in the wake of the US Inflation Reduction Act. He mentioned the recent proposals of the Green Deal Industrial plan and Net Zero Industry Act, temporary state aid measures and administrative simplification or skills agenda. "It's quite a complex endeavour, but we know that we need to be consistent in keeping competitiveness in mind when we pursue different policies," he said, adding that Europe is lagging behind when it comes to productivity and growth.
Europe's share of the global economy has been declining for quite some time - from 25% in 1990 to 15% in 2020 and in 2050 it is predicted to be less than 10%. Europe is falling behind on eight of ten transversal technologies, putting European companies at a disadvantage.
Speakers at the event, included also business leaders and members of the European Parliament.
European companies underperform in comparison to their counterparts in other major regions: they are growing more slowly, creating lower returns, and investing less in R&D," reminded Mallia. "We need to critically examine why we continue to lag behind on innovation, when it is innovation that will establish whether we will survive the global storm ahead."
Employers told MEPs, who are about to embark in the last lap of this legislature, that we can still turn the tide.
"We need to overcome the national egotism of some Member States," said Sandra Parthie, Employers' Group member and chair of the EESC Internal Market, Production and Consumption. "Businesses are much more advanced as they seek the comparative advantage across borders. They do not act nationally. The real way to competitiveness is the way of the Single Market, which has not been fully implemented yet," she insisted.
Parthie called on the next European Commission to focus on enforcement of the regulations that are already in place and not before we start adding on new rules and new ideas. "Get us the single market which is indeed the key instrument that will deliver a competitive Europe that can stand up in the world," she ended.
Employers have repeatedly called to focus on three actions:

• Have competitive access to resources: Energy, raw materials, labour, capital, and data must be available under competitive conditions for businesses to thrive.
• Have open markets with equal rules: Businesses of all sizes, sectors, and locations need access to markets with a level playing field in the EU and globally.
• Have business-friendly regulation and taxation: This means that we need a policy framework that supports entrepreneurship and innovation, investment, and trade to once again make

Europe the number one location for investment.
Professor Dr. Michael Hüther from the German Economic Institute (IW) called for a Delors 2.0 plan. The idea is that demanding "more Europe" as a response to crises is not enough to achieve real change that, as in the spirit of the Delors Plan of 1989, realises a new vision of Europe. "Before investments can show their full impact at the European level and further political integration can be considered, requirements must be met in order to make Europe more attractive as a location for investment and to stimulate private and public investments," he said, hinting at the fact that Brussels is recognizing the pressure to act. "However, this does not ensure the EU's resilience in the Global Power Competition."
EU Employers warned policymakers that they will not lower the guard. "As business leaders, it falls upon us to play an active role in shaping this path. Our role is pivotal in providing businesses with the necessary conditions to function as engines for growth and prosperity," ended Mallia.

On 18-19 September 2023 the Sustainable Development Goal (SDG) Summit will take place in New York. It aims to mark the beginning of a new phase of accelerated progress towards achieving the SDGs, with high-level political commitment and guidance on transformative and accelerated actions leading up to 2030.

EESC took a stand for civil society engagement
In preparation for this significant summit, this year's High-Level Political Forum on Sustainable Development (HLPF) at the UN Headquarters in New York (17-19 July 2023) was particularly important in preparing and supporting the mid-term review of the implementation of the SDGs and the 2023 SDG Summit. The HLPF convenes annually and brings together governments, UN agencies, major groups, civil society organisations and other stakeholders.
It was a privilege and an honour for me to be part of the EESC delegation to this year's HLPF mission. As an official advisory body representing Europe's organised civil society, the EESC has been actively engaging in the HLPF for years to advocate the views of European citizens and promote sustainable development policies to be aligned with the EU's priorities. A particularly important initiative this time was the official presentation of the first EU Voluntary Review (EUVR), a self-assessment and reporting mechanism on the implementation of the SDGs in EU policies in recent years. EU Commissioners Paolo Gentiloni and Jutta Urpilainen were present and made sure Europe's voice was heard.
Against this background, the purpose of the EESC's participation was to be equally active in presenting the first EUVR, particularly by jointly organising a side event with the Commission on "Delivering the SDGs: Revitalised partnership with the EU", and to extend and strengthen the EESC network's with civil society players and youth organisations.
The EESC did indeed play a significant role in the EUVR process, which was also acknowledged by the two Commissioners. It has been tasked with providing the views of civil society through an in-depth analysis of the SDGs, assessing the achievements and challenges of EU policies in attaining each goal. The EESC engaged in a broad consultation process involving stakeholders at all levels, ensuring the active participation of civil society organisations. The full contribution has been included as an annex to the EUVR.
The programme for the EESC delegation was of the highest quality. The highlight was, of course, a meeting with António Guterres, UN Secretary-General. The short meeting, also attended by the Committee of the Regions' president and members, was an opportunity for the EESC delegation to highlight the EESC's commitment to the 2030 Agenda, calling for the involvement of civil society to accelerate the implementation of the SDGs and allow organisations to play a convening role.
Of particular interest was a meeting with Guy Ryder, Under-Secretary-General for Policy at the UN (former Secretary-General of the ILO), who plays a crucial role in advancing the UN's core values and principles, promoting international cooperation and driving the implementation of key UN frameworks, such as the SDGs and the Paris Agreement on climate change.
It was alarming to hear Mr Ryder describe the current challenges of multilateralism in the face of the Russian aggression and the war in Ukraine and the outdated and poorly functioning mechanisms in place, such as the Security Council and the current global financial architecture.
Globally, only 12% of the SDGs are on track. It is critical to reform the international financial system, and debt distress and debt relief in many developing countries need to be urgently addressed to achieve real global progress on the SDGs. Mr Ryder highlighted three important events that will follow up on this issue: the SDG Summit in September 2023, the Summit of the Future in 2024 and the World Social Summit in 2025.
The key message coming out of our mission is: Europe can and must play an important and constructive role in reinforcing or even saving the multilateral system, which is under serious threat.
The "European way of life" is something the world envies us for and which is worth defending on a global scale. An intact civil society is key to functioning democracies and therefore the EESC's particular institutional role is deeply embedded and clearly recognised. Building personal and institutional networks outside the "Brussels bubble" with civil society organisations and their representative organisations from other parts of the world is an important and unique opportunity to further gain visibility and strengthen our credibility. by Antje Gerstein, member of the EESC Employers' Group

As the dust settles on the last State of the Union address by European Commission President Ursula von der Leyen before the end of her mandate, one thing is clear: Competitiveness is back on the agenda after years of neglect. The Commission has finally realised that the Europe framed by our founding fathers must answer the new call of history.

This call features a successful industrial green and digital transition that allows EU companies to compete and lead in the world, and deliver prosperity at home and abroad. I agree with President von der Leyen, it’s time to make business easier in Europe. We need to do #Whateverittakes to allow European companies to do business. Asking Mario Draghi to prepare a report on the future of European competitiveness is indeed good news.
But it will take more than a report to regain a competitive edge. Europe's share of the global economy has been declining for quite some time - from 25% in 1990 to 15% in 2020 and in 2050 it is predicted to be less than 10%. We are falling behind on eight of ten transversal technologies, putting Europe at a clear disadvantage.
For instance, the top ten major companies investing in quantum computing are in the United States or China, not in Europe. In artificial intelligence (AI), investment by US corporations is six times that of their European counterparts.
From the top 10 countries which have published the most impactful AI research, we only find 2 EU member states, Germany in 4th and France in 8th place. Of the top 100 cited papers on AI, we find that in 2022, Germany was the source of 4 papers whilst France was the source of 2 such research papers. Compare this with 68 in the US and 27 in China.
Europe has a lot of catching up to do.
Speaking in the European Parliament, von der Leyen promised to launch an anti-subsidy investigation into electric vehicles coming from China. Of the estimated 10 million all-electric cars sold worldwide last year, 6 million were manufactured by Chinese producers. This is an industry where traditionally it was China that was looking towards us a leader in the field. Von der Leyen's promise is therefore a welcome step, but it's too little, too late.
Take the other competitive disadvantages: Europe has some of the most productive retailers but has no online retail platform to match the size of leading US and Chinese online retailers. Europe has strength in software, too, but is not leveraging its position to establish a world-leading business-to-business software company.
The reality is that compared to our competitors, EU businesses are burdened by significant administrative obstacles that hinder their ability to invest and effectively undergo the green and digital transition.
The announced legislative proposal towards reducing reporting obligations at the European level by 25% goes in the right direction, but will it be enough? My answer is that the incoming EU legislative pipeline is still loaded and companies have reached legislative saturation point. Also, the EU SME envoy directly reporting to von der Leyen is a welcome step, but we need to clarify exactly how that is going to accelerate change.
The latest economic data show that the EU economy is growing but slower than expected as the Commission revised its growth forecast for 2023 to 0,8% from the 1% projected in May, blaming weak consumption resulting from high and still increasing consumer prices.
These are facts. This implies that we need to accelerate more than said the reduction of fiscal and administrative burdens on companies. Europe has become a champion of regulation which is hindering our indigenous enterprises whilst at the same time discouraging inward investment. Von der Leyen cited that the number of clean steel factories in the EU has grown from zero to 38. Yes, but just taking into account recently enacted legislation and legislation which is in the pipeline, the EU steel industry will have to deal with 148 new legislative initiatives, 89 of which come from the Green Deal. That's a Herculean task! This trend is unmistakably mirrored in the reality that European companies underperform in comparison to their counterparts in other major regions: they are growing more slowly, creating lower returns, and investing less in R&D.
In the coming days, EU employers will ask for clarifications on many of the initiatives mentioned by President von der Leyen. Many are at the core of our work, such as the delivery of a competitiveness check by an independent board, the fast-track permitting on wind energy, the sectorial dialogues in view of supporting business models for transition, the Social Partners Summit at Val Duchesse, and last but not least the Draghi's report on competitiveness, which must also integrate a look at the Single Market, totally missing from von der Leyen's speech. But considering this legislature will switch to campaign mode at the beginning of 2024 for the European elections, allow me to be a bit pessimistic, despite the positive tone of this landmark speech. Time is short.
To regain competitiveness we need political will, now. We urgently need to bridge the gap between rhetoric and reality. Time is not on our side. by Stefano Mallia, President of the EESC Employers' Group