Good afternoon,
Today we discussed the Competitiveness Compass. I want to start by emphasizing the strengths of the European Union. We have a strong industrial base and a well-educated workforce. We possess a large internal market and are the second-largest economy. However, Europe is also held back by weaknesses. Our business models relied on cheap labor from China and energy from Russia. Those days are over. Europe lags behind the US and China in productivity growth. We must address these weaknesses to remain competitive.
That is why I asked Mario Draghi to write a report on the EUs competitiveness. The report provides clear recommendations. The Competitiveness Compass, which we agreed on today, translates this report into concrete actions. It focuses on three pillars: boosting innovation, a joint roadmap for decarbonization and competitiveness, and strengthening our resilience and economic security. These pillars are supported by key factors such as simplification and lowering barriers to the internal market.
In terms of innovation, we need to increase our productivity. Europe has impressive research results but only exploits a third commercially. This must change. We will introduce a broad AI strategy and encourage technological adoption. We also focus on improving access to capital for start-ups.
The second pillar is the transition to a net-zero economy. The EU remains committed to the Green Deal goals. We must provide predictability for clean tech investors. We are already world leaders in wind turbines and other technologies but must maintain this position.
The third pillar is strengthening our economic resilience. We have trade agreements with 76 countries and are the largest trading partner for many. We are introducing a new generation of trade deals to secure raw materials and clean technologies.
Finally, we must implement simplification and reduce administrative burdens for businesses. Developing skills is crucial. We have a strong labor market but a shortage of skilled workers. We will launch a Skills Union to upskill Europes workforce.
This is an overview of the Competitiveness Compass. We have a plan and a roadmap. What matters now is speed and unity. The world is not waiting, so we must accelerate.