Skip to main content
European Commission logo
enen
European Commission

EU competitiveness

What the EU does

Humanoid robotics and AI research and development - Italian Institute of Technology

Growing challenges such as climate change, artificial intelligence and geopolitical tensions are changing the world we live in. In order to thrive in this new landscape, we need to ensure that Europe is a place where growth and innovation can continue to be fostered.  

To ensure that European businesses can thrive in the global marketplace and to deliver sustainable prosperity for all people in the EU, the Commission is placing competitiveness at the heart of its economic agenda.

The Commission’s work in this area is guided by the Draghi report and the competitiveness compass.

Expected outcomes

€470 billion
additional funding that European companies could raise from a more integrated capital market
€37.5 billion
potential annual savings for EU companies if we achieve our simplification goals
500,000
projected new jobs in the European circular economy by 2030

Areas of action

Union of skills

Our plan to plug the labour and skills gaps that are holding back European growth.

Simplification

Reducing the administrative burden on EU companies to make doing business easier and faster.

Key achievements

  • The EU provides a stable and secure framework for companies developing digital technologies, through measures such as the Data and Data Governance Acts, the Cyber Resilience Act and the AI Act.
  • More than one-fifth of the world’s clean technologies are developed in the EU, and Europe is a world leader in the development of wind turbines, electrolysers and low-carbon fuels.
  • The EU has the largest and fastest growing network of trade agreements in the world, covering 76 countries. We are the number one trading partner for 72 countries, representing 38% of world GDP. In 2022, the value of EU trade through free trade agreements with global partners surpassed €2 trillion for the first time.
  • The Commission has set ambitious targets to reduce reporting requirements by at least 25% for all companies and at least 35% for SMEs, and eventually expand these reductions to all types of administrative burden This is part of an unprecedented EU simplification effort, which aims to encourage business dynamism and attract additional investment to Europe.
  • The EU boasts a large pool of skilled workers, strong education and training systems, and a robust welfare state. Today more than 216.5 million people, or over 75% of the population, are employed, more than at any other time in the EU’s history. 

In focus

Boosting the European car sector

The European car industry is a vital sector of our economy. However, it faces many challenges, including new technologies, increasing competition and a changing geopolitical context. 

To address these challenges, the Commission has designed a new action plan for the sector. The plan will help ensure a thriving car industry that creates jobs, drives growth, and protects the environment for generations to come.

Learn more

Related links