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The book is the president of the European Central Bank and the head of the European Commission
Competitiveness is essential for the future of Europe. We need faster economic growth and higher production to protect the quality of life for Europeans – from their functions and their entered their security and well -being.
For this reason, Europe should behave. Our competitiveness is in danger. While a global revolution in artificial intelligence is revealed, the European Union can find itself on the margin. Our traditional manufacturing heroes lose their share in the global market. Geopolitical transformations converted dependence to weaknesses and firmly install our companies with high -price prices.
Europe must find its place in this new world. The horizons of our continent are better than it may seem. The European Union has strengths that can build on it – and has a plan to fix weaknesses.
Europe has strong economic basics. We have institutions governed by the rule of law, and an independent central bank committed to price stability. Inflation is 2 percent to the European Central Bank, allowing low borrowing costs. Public debts and deficits are less than other major economies.
Europe also has the ingredients to catch up with the technological race. The European Union turns into nearly a number of STEM graduates per million, such as the United States. This talent produces many ideas: Europe's share of global patents is close to those in the United States. We have money to finance them, as families provide about 1.3 trillion euros every year.
We have an opportunity to lower energy prices in a permanent way. The shift to low -cost clean energy sources on the right road: by 2030, more than 40 percent of our energy consumption will come from renewable energy sources. We are in a good position to become a global center for creating clean technology, especially since some countries are heading in a different direction.
While others must reduce their dependencies by building local power, the European Union can choose from a wider set of options due to its unique position in global trade. We are the highest commercial partner for more than 70 countries and we continue to conclude new agreements, the last of which is with 400 million Latin Americans. In a deal with the European Union, what you see is what you get.
But these strengths are meaningless if Europe stumbles its weaknesses. We need a deep change on three fronts.
First, we need to make the European Union easier for innovative companies to grow. A third of the university patents are only marketed in Europe, while companies that are trying to expand in our unified market face many internal barriers. Despite our savings, entrepreneurs lack the capital of risk, because capital markets are still very fragmented.
Second, we need to make Europe a better place to invest. Two of every three companies in the European Union say that the organization is a major obstacle to investment, while only 14 percent of them use artificial intelligence. Companies are still facing long permits procedures, arduous reporting requirements and divergent enforcement of digital rules.
Third, we need to make business in Europe cheaper, especially with regard to energy costs. While the transformation into renewable energy sources creates good jobs and enhances energy security and independence, it also comes with an increase in stress and greater energy loss by reducing. To get the benefits of carbon removal to appear in corporate bills, we need huge investments in networks, storage and the most intelligent market design.
Europe got the message. The European Commission presented this week with a competitive compass, which determines ambitious proposals to address these shortcomings. From now on, the European Union will not only seek to reduce the barriers facing companies, but also to ensure that they have the resources they need to prosper here – whether it is funding, account, energy or skills.
For example, the committee will suggest the so -called “twenty -eighth system” for innovative companies, allowing it to benefit from one legal framework through the European Union for the aspects of the Companies and Sonance Law, Labor and Tax Law. The savings and investment union plan will be launched, which will ensure that innovative companies can find the financial support they need.
The European Union will also give companies access to a network of leading giant computers in the world. This will help develop new advanced technologies and spread artificial intelligence faster among the inserted heroes. The European Central Bank will also play its role by keeping Europe at the forefront of digital payment technologies, including through the digital euro project.
In parallel, the organizational burden will be reduced through an unprecedented simplification effort, starting next month. This will include a long -term simplification of legislation on reporting sustainable financing and due deception. Energy prices will be reduced through a set of measures to integrate markets, increase the contracted energy and reduce taxes.
This is only a snapshot of what awaits us. Companies and families want to see work – a wave of procedures to come. We can no longer dispel our strengths with the obstacles imposed by it. There is a lot at stake. We are ready to do everything necessary to return Europe to the right track.
