Keynote remarks by Commissioner Dombrovskis at the Franco–German Aviation Evening

Good evening. Thank you for the invitation to join you this evening.

The importance of Europes aviation sector cannot be overstated.

It binds us together and connects us with the world.

The EU has long recognised its strategic and symbolic importance.

Indeed, one of the EUs major achievements over the past 30 years has been building – piece-by-piece – the single EU aviation market.

It is the worlds largest and most successful example of regional market integration and liberalisation in air transport.

This has allowed competition to flourish, providing travellers with better connectivity and lower fares.

In doing so, it has facilitated the free movement of people and goods throughout the continent, in line with the foundational aspirations of the European Union.

In concrete terms, aviation is a strong driver of economic growth, supporting close to five million jobs and contributes €300 billion to European GDP.

So, the aviation sector is truly a pillar of Europes connectivity, competitiveness, and autonomy — and a cornerstone of European integration.

But of course, the sector has faced significant challenges – or turbulence – in recent years.

We all remember the images of empty airports and grounded aircraft during the darkest days of the COVID-19 pandemic, with the number of flights in Europe decreasing by 55% in 2020 alone.

Today, while recovering from the impact of the pandemic, it continues to face strong headwinds.

Some of these challenges are unique to the aviation sector, while others are shared by all European industries and businesses.

They include stiff international competition, high levels of uncertainty, and the need to decarbonise.

On top of these, security threats are also affecting our aviation sector.

Indeed, just this weekend, we witnessed a series of cyberattacks disrupting operations at some of Europes major airports, resulting in delays and cancellations.

So, the challenges facing the aviation sector are manifold and immediate.

This evening, I would like to speak about the European Commissions efforts to help our businesses navigate this profoundly challenging period by enhancing Europes competitiveness, with a specific focus on our simplification agenda.

For decades now, the European economy has been failing to make the full use of its assets to maximise prosperity and growth.

This is most evident in our failure to keep pace with international competitors such as the US and China when it comes to productivity growth and innovation.

Our foundational economic assets – including the Single Market, the rule of law, strong institutions and a highly educated workforce – have enabled the EU to navigate a series of economic shocks and crises in recent years.

However, with persistent global trade tensions, shifting alliances, revolutionary technological changes and a war continuing to rage on our continent, we are witnessing a transition to a new world in which Europe must quickly find its place.

Todays turbulent world therefore provides the strongest possible incentive for action.

The European Commission has already made a good start in implementing our broader competitiveness strategy – the “Competitiveness Compass” – across the three pillars identified by the Draghi Report, namely closing the innovation gap, making decarbonisation a growth driver, and reducing dependencies on the outside world.

Simplification is a crucial element of the Compass.

Indeed, the European Commission has identified easing the regulatory burdens we place on our businesses as a central pillar of our broader drive to improve Europes competitiveness.

I am sure you are all, by now, familiar with the general objectives of our simplification agenda.

I am confident that everyone in this room welcomes efforts to tackle regulatory incoherence, unnecessary complexity in legislation and over-reporting.

In doing so, we will facilitate businesses redirecting their time, energy, and resources away from paperwork and towards innovation, investment, and growth.

This is especially true for those industries and sectors most exposed to global competition, such as the aviation sector.

We simply cannot expect European businesses to compete effectively with the rest of the world when they face bureaucratic burdens and costs at home that their international competitors do not have to deal with.

We must level the playing field.

Now that I have spoken about what our simplification agenda is, it is also important to make clear what it is not.

Simplification does not mean deregulation.

It does not represent a race to the bottom or an effort to sacrifice European excellence or high standards.

This would be short sighted and self-defeating, especially for the aviation sector.

Nor does it mean that the European Commission is no longer committed to achieving the green transition.

As I was mentioning, reconciling the need to decarbonise with boosting competitiveness is an important element of the Draghi report and our Competitiveness Compass.

I am convinced that we can maintain high standards and continue to decarbonise our industries while easing the regulatory burdens on businesses by making our rules simpler, more proportionate and easier to navigate.

We have been listening to those navigating our rules and regulations when designing our simplification proposals.

In fact, a dialogue with practitioners is embedded within the European Commissions simplification strategy.

Each Commissioner needs to hold two so-called “implementation dialogues” with stakeholders per year.

It also foresees that Commission services liaise regularly with practitioners on the ground through “reality checks”.

Actually, this is a practice we based on Germanys praxis checks.

These two new consultation approaches will help us to identify what works and what needs to be improved in the application of EU rules, foster good practices and prepare meaningful simplification proposals.

I welcome your invitation to join you this evening as another opportunity for such engagement.

This engagement has already fed into our proposals and led to real changes that can make a real difference for businesses on the ground.

Since the beginning of the year, the European Commission has presented six simplification omnibus proposals, including in agriculture, defence, due-diligence, and sustainability reporting.

A conservative estimate puts the annual savings stemming from these simplification proposals at around €8.4 billion.

Further omnibus proposals are on their way in the coming months, including on digital and environmental requirements.

But this is just the beginning.

Our overall objective is to simplify administrative procedures to reduce costs by 25% for all businesses and by 35% for SMEs.

This means cutting around €37.5 billion in annual administrative costs by the end of this Commissions mandate in 2029.

To conclude, ladies and gentlemen, securing our prosperity is dependent on creating a regulatory environment that works for our citizens and businesses, not against them.

We want our rules to drive competitiveness, not impose burdens.

The European Commissions simplification agenda will help to ensure that the EU aviation sector remains competitive, maintains its leadership position and continues to grow.

Your success will be a European success.

Thank you. Merci. Danke.