EU launches Competitiveness Compass to boost business growth
The European Commission will unveil its Competitiveness Compass on Wednesday, outlining plans to support business growth and innovation. While climate policy has been a priority in recent years, the EU is now looking to streamline regulations and reduce administrative burdens, while stressing that economic growth is necessary to achieve sustainability goals.
The shift comes in response to changes in the global economy, including the re-election of Donald Trump in the US and the growing influence of China. The Commission wants to ensure that European companies remain competitive amid evolving trade policies.
Regulatory simplification
A key aspect of the initiative is regulatory simplification, with a focus on aligning EU and national rules. Sustainability legislation introduced in recent years will be among the first to be reviewed.
Commission president Ursula von der Leyen plans to consolidate several pieces of legislation into a single "omnibus" regulation by February to simplify compliance requirements for businesses.
Recent adjustments to EU policies reflect this broader approach. The Commission has postponed an anti-deforestation law and withdrawn a proposal to reduce the use of pesticides in agriculture. While some member states support these changes, others may argue for maintaining stricter environmental rules.
Discussions are also expected on new competition rules, particularly on mergers and state aid. Some governments favour increased financial support for businesses, possibly through EU funding. The Commission has stressed the need for a coordinated strategy, warning that a fragmented approach could affect economic stability.
© BELGA PHOTO BENOIT DOPPAGNE
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