Without tailored regional strategies Europe cannot enhance its global competitiveness, local leaders say

To remain a leading global economic power and enhance its competitiveness, the EU needs a unified EU industrial policy but also investment tailored according to the needs and potential of local contexts. This is the key message of the opinion led by Martijn van Gruijthuijsen, adopted during the plenary session of the European Committee of the Regions (CoR) on 21 November.

CoR members in the opinion stressed that, while the United States and China have committed to robust industrial strategies, the EU has yet to deliver a unified industrial policy that meets global challenges. As drawn up in the reports of former Italian Prime Ministers Mario Draghi and Enrico Letta on the Single Market and future of EU competitiveness, CoR members highlighted the importance of shaping future EU policy around core values of prosperity, democracy, equality, and sustainability. By embedding these values in a common EU strategy, Europe can increase its resilience and ensure that all regions benefit from growth and unity. They underlined that without a common effort from the EU, the entire bloc risks falling further behind.

CoR members stressed that, to respond to these challenges, Europe has to become a global leader in crucial technologies and industries. They welcomed Draghi's vision of strengthening the EU's role in strategic technologies and building up capacities in defence and resilience. In the opinion, local and regional leaders called on the EU to ensure Europe's technology remains secure and competitive, urging greater protection against unfair practices from outside the Union.

Regions and cities are key to achieving Europe's goals, and CoR members stressed the need for flexible, locally adaptable policies. They called for a renewed focus on transformative innovation with a technology-neutral approach, enabling regions to adopt advanced practices at their own pace. This approach will support regions leading in innovation while providing structural help to those that need more time, fostering regional specialisation. Local leaders also urged reducing administrative burdens on businesses and advocated for systematic EU regulatory assessments at each Commission mandate's start, aligning with recommendations from the Draghi report.

Local and regional authorities called for increased investment in research and development and an "active subsidiarity" approach to ensure that EU policies fit local contexts. They stressed that a more integrated Single Market, accessible to businesses of all sizes, is crucial for sustained EU economic growth. Reflecting the Letta and Draghi reports, the CoR urges the EU to make the Single Market more accessible for SMEs, not just large companies, by reducing trade obstacles and removing entry barriers for startups and scaleups. A unified approach leveraging each Member State's strengths will boost Europe's global competitiveness and build a resilient, prosperous economy.

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Rapporteur Martijn VAN GRUIJTHUIJSEN (NL/Renew), Regional Minister of the province of North Brabant: "The future of Europe's competitiveness lies in our ability to innovate, lead in critical technologies, share brainpower and make sure all regions can thrive. This is not just an opportunity, but a necessity. The time to act is now. By doing so, Europe can secure its place as a global leader in the 21st century."

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Since its creation over 30 years ago, the Single Market has been central to EU integration and economic development, serving as one of the EU's most significant achievements. The Single Market is now the largest combined marketplace in the world. By removing restrictions on cross-border goods and services, the Single Market has driven prosperity and economic growth across Member States, contributing an estimated 8-9% to the EU's GDP.

In April 2024, Enrico Letta, former Italian Prime Minister, published his report on the 'Future of the Single Market', highlighting the need to tackle remaining unjustified obstacles to cross-border economic activities, to promote interregional cooperation, also across Member States and to help SMEs better navigate the Single Market.

In September 2024, Mario Draghi, former Italian Prime Minister, published his report on the future of European competitiveness, in which he calls for a "radical change" to prepare the EU for the green, digital and security challenges of a "new world" and presented the goal to strengthen the EU's external competitiveness. The findings of the report contribute to the Commission's work on a New Competitiveness Deal and to the development of the new Clean Industrial Deal for competitive industries and quality jobs, which will be presented in the first 100 days of the new Commission mandate.