COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS A Competitiveness Compas...

EUROPEAN COMMISSION COMMUNICATION FROM THE COMMISSION Brussels, 29.1.2025 COM(2025) 30 final TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS A Competitiveness Compass for the EU EN EN A Competitiveness Compass for the EU Europe has many economic strengths, but must act now to regain its competitiveness and secure its prosperity. The EU has all the assets to lead in the global economy of tomorrow. It has unrivalled talents and a skilful workforce, a large pool of private capital, a continental size Single Market, a stable and predictable legal environment, rule of law and a unique social market economy. In recent years, Europe has shown a remarkable ability to respond to a succession of crises. It has withstood the pandemic and the energy shock provoked by Russia’s energy blackmail. It has made tangible progress on its twin digital and green transition and introduced new policies and new funding instruments to sustain recovery and increase economic growth. The EU must urgently tackle longstanding barriers and structural weaknesses that hold it back. For over two decades, Europe has not kept pace with other major economies, due to a persistent gap in productivity growth. The EU has fallen behind the US in advanced technologies, while China has caught up in many sectors, and is winning the race for leadership in certain new growth areas. The root cause is a...