The European Commission’s Competitiveness Compass, published on 29 January, sets out an ambitious vision to reignite Europe’s economic dynamism. Ceemet welcomes the recognition that Europe must avoid a “slow agony” of economic decline and instead foster an environment where innovation, clean technologies, and industrial strength can thrive. At no point in recent years has competitiveness been so high on the agenda of European policymakers, which shows the urgency of the situation. The success of this strategy will depend on whether it translates into real, effective policies that enable European industry to compete globally.
Ceemet acknowledges the inclusion of key priorities long advocated for by the Metal, Engineering and Technology-based (MET) sectors, including:
- Energy policy and infrastructure: A reliable and affordable energy supply remains critical for industry competitiveness. European companies cannot thrive under unstable and high energy prices.
- Better regulation and simplification: The commitment to reduce reporting obligations by 25% (35% for SMEs) and to assess the competitiveness impacts of regulations is a positive step forward. MET industries welcome the Commission’s goal of reducing at least 37.5 billion euros of recurring costs until the end of the mandate—a cost that could be redirected by industries into investment, innovation, employment, and workforce development.
- Skills and workforce development: Tech & Industry Employers are positive about the upcoming initiative on the Union of Skills. We welcome the focus on upskilling and re-skilling as well as on STEM education that aligns with the needs of our sector. Indeed, the EU STEM Education Strategic Plan should serve to improve STEM skills and promote STEM careers at all levels. Moreover, we also welcome the European Strategy for Vocational Education and Training, which should serve to boost the excellence of VET systems as well as its attractiveness as a first-class training choice that leads to quality employment. For us, well-functioning VET systems are an indispensable tool to deliver the right skill sets that our companies need to cope with major technological changes and facilitate the transition to a green economy. MET industries are impacted by labour and skill shortages, which have been a persistent and unsolved issue for companies for many years. Today, these shortages continue to be a major obstacle hindering the competitiveness of our companies. In this regard, we consider the Union of Skills to be a very positive development on the roadmap of addressing labour market and skill shortages.
- Single Market efficiency: Removing barriers and ensuring full interoperability of digital tools will help businesses operate more effectively across borders. We are very excited about upcoming initiatives, such as the implementation of e-declaration.
Key priority areas for MET industries
While the Commission acknowledges many challenges facing European industry, Ceemet urges further action on key areas:
- Targeted investment, not just broad promises: European industry requires a realistic industrial strategy that accounts for regional and sectoral differences. Investment strategies should be shaped in close dialogue with social partners to ensure fairness and effectiveness. Competitiveness requires both public and private investment. To convince struggling businesses to make long-term investments despite economic uncertainty and rising costs, it’s of the utmost importance that the European Commission shows readiness for significant public investment.
- Avoiding over-prescriptive regulation: While simplification is mentioned, too many legislative burdens still hinder companies’ ability to adapt and grow. A true “Think small first” principle should be embedded in EU decision-making.
- Energy affordability: The lack of infrastructure and coherent energy pricing strategies continues to weigh heavily on European manufacturers and will continue to do so, considering geopolitical developments across the Atlantic and in the East. Without credible energy policies, European industries’ competitiveness will remain out of reach.
- A fair approach to decarbonisation: The Green Deal’s tight deadlines put undue pressure on energy-intensive industries. A balanced approach that allows companies to transition without jeopardising their competitiveness is crucial.
The European manufacturing sector remains committed to innovation and sustainability but cannot operate effectively in an environment that prioritises regulatory complexity over economic viability and limitless social conditionality without consideration of economic sustainability. The Competitiveness Compass provides a framework, but its implementation will be the real test.
Ceemet is hopeful that the European Commission will turn the ambitions pinned down in the Compass into tangible actions that support our industries in leading Europe’s economic future.