On 9 September 2024, Mario Draghi, former European Central Bank President, published his report on “The future of European competitiveness”. This report highlights several challenges and proposes a number of solutions which align with what the MET industries have been advocating for many years. It focuses on the need for innovation and digitalisation combined with a sustainable economy.
Addressing the EU’s Investment and Regulatory Gaps to Ensure Global Competitiveness
The recent report highlights a growing disparity in research and innovation investment within the EU, especially when compared to our main competitors in an increasingly globalized world. This investment gap is partly due to the regulatory burden that companies are facing. European firms are hampered by complex regulations that diminish their capacity to optimize their productivity and competitiveness.
Those challenges are directly impacting the MET industries for many years but despite those difficulties, MET industries have continued to invest, striving to operate within the various constraints imposed on them, such as transition deadlines for digitalization and environmental sustainability. However, they are struggling each day to maintain their competitiveness, moreover, as also recognised in the Draghi report they are confronted with huge difficulties to find workers with the right skills.
It is therefore important, as called for by the Draghi report, to support companies facing decarbonisation in the EU automotive industries. One way forward is an industrial action plan with a set of measures on innovation, investments and skilling of the workforce.
Tackling skills and labour shortages
There is indeed another equally pressing issue that cannot be overlooked and that has been mentioned in the recently published report: the labour and skills shortage across Europe. Driven in part by a growing demographic deficit, this shortage is placing significant strain on the European economy. Without the necessary workforce to meet market demands, even the most innovative companies will struggle to maintain their competitive edge. We therefore fully support Mr Draghi’s recommendation to adopt “a European strategy to address skills gaps – focused on all stages of education”.
Cooperate closer with social partners
To achieve those ambitions, and particularly the digital and green transition in this economy transformation, the Draghi report insists that policymakers should change their approach to better implement their policies and adjust them to the real need of the companies. According to him, “more effective and proactive citizens’ involvement and social dialogue, combining trade unions, employers and civil society actors, will be central in building the consensus needed to drive the changes.” Indeed, social dialogue is crucial and Ceemet stands ready to work closer with the EU institutions to build a better industrial plan.
In conclusion, while addressing investment and regulatory gaps is essential for the future of European business competitiveness, tackling the labour and skills shortage must also be a priority. Only through a holistic approach can the EU hope to secure long-term success in the global economy.
