Source: European Parliament
The Commission adopted the Competitiveness Compass[1] on 29 January 2025. The Compass builds on the Draghi Report[2] by setting out measures to close the innovation gap, a joint roadmap for decarbonisation and competitiveness, and reducing excessive dependencies and increasing security.
It furthermore sets out horizontal enablers of EU competitiveness. The Competitiveness Compass identifies flagship actions and initiatives such as the Clean Industrial Deal[3] that will further implement the priorities set out in the Compass.
Private financing and a refocused EU budget are needed to mobilise investments for competitiveness. On 19 March 2025, the Commission adopted a communication on the Savings and Investments Union[4], a key initiative to improve the way the EU financial system channels savings to productive investments.
In 2025, the Commission will present a new approach for a modern and reinforced EU budget, which will be simpler, with fewer programmes and a plan for each country linking reforms with investments. The European Competitiveness Fund will make investment in strategic technologies and de-risk private investment.
Energy prices are central to the competitiveness of EU companies. The Commission adopted an Action Plan for Affordable Energy[5] to bring down energy prices for industry and households.
The action plan sets out measures to pass on the lower generation cost of fossil-free electricity to consumers, make the energy system more resilient, and unlock investment.
This is part of the wider Clean Industrial Deal initiative which was adopted on the same day to support two closely linked sectors in the transition to meet the EU’s agreed decarbonisation goals, namely the energy intensive industries and the clean-tech sector.
- [1] A Competitiveness Compass for the EU, COM(2025) 30 final.
- [2] https://commission.europa.eu/topics/eu-competitiveness/draghi-report_en
- [3] https://commission.europa.eu/topics/eu-competitiveness/clean-industrial-deal_en
- [4] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex:52025DC0124
- [5] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex:52025DC0079