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Writers are the President of the European Central Bank and the President of the European Commission
The rest is competitive for the future of Europe. We need faster economic growth and greater productivity to protect the quality of life of Europeans – from their jobs and income to their safety and well -being.
That is why Europe must act. Our competitiveness is in danger. While the global revolution takes place in artificial intelligence, the EU could be found on the side. Our traditional production champions lose a global market share. Geopolitical shifts convert dependence on vulnerability and burden our companies with high energy prices.
Europe has to find its place in this new world. The odds for our continent are better than it may seem. The EU has the strengths on which it can be built – and has a plan to fix its weaknesses.
Europe has strong economic basics. We have institutions that governing the rule of law and an independent central bank dedicated to the stability of prices. Inflation returns to the ECB 2 -EXCELLENT Objective, allowing decline in borrowing costs. Public debts and deficits are lower than in other major economies.
Europe also has the necessary ingredients for compensation in the technological race. EU turns out to be almost as many graduates by STEM into a million inhabitants as it is now. This talent produces a lot of ideas: a share in Europe in global patent scholarships is close to American. And we have money for their financing, and households save around 1.3 thousand euros each year.
We have the opportunity to reduce energy prices in a permanent way. The shift to safe, cheap clean sources of energy is on the way: by 2030. Over 40 percent of our energy consumption comes from renewable energy sources. And we are well placed to become a global center for pure technological innovations, especially since some countries hit the other direction.
While others have to reduce addiction by building domestic capacity, the EU can choose between a broader set of possibilities due to its unique position in the global trade. We are the best commercial partner for over 70 countries and we continue to reach new agreements, recently with 400 million Latin Americans. And in agreement with the EU, what you see is what you get.
But these forces are pointless if Europe is tightened with its weaknesses. We need a deep change on three fronts.
First, we have to make the EU a lighter place for the growth of innovative companies. Only one -third of university patents in Europe are commercialized, while companies that try to increase in our unique market face many internal obstacles. Despite our savings, entrepreneurs lack access to risk capital, as capital markets are still too fragmented.
Second, we have to make Europe a better place to invest. Two of the three EU companies say that regulation is a key obstacle to investing, while only 14 percent use AI. Companies continue to face long issuing procedures, difficult demands for reporting and different implementation of digital rules.
Third, we have to do business in Europe cheaper, especially in terms of energy costs. Although the transition to renewable energy sources creates good jobs and strengthens energy security and independence, it also comes with greater occasional and higher energy losses through the reduction. For the benefits of decarbonisation that appear in companies accounts, we need a large investment in networks and storage and smarter market design.
Europe received a message. This week, the European Commission presented its compass competitiveness, which ambitious proposals to resolve these defects. From now on, the EU will strive not only to reduce the barriers that companies face, but also to ensure that they have the resources needed for progress here – whether they have funded it, counted, energy or skill.
For example, the Commission will propose the so -called “28. The regime “for innovative companies, allowing them to benefit from a unique legal framework across the EU for aspects of corporate law, insolvency, Labor and Taxation Act. They will launch a savings and investment plan, which will ensure that innovative companies can find the financial support they need.
The EU will also provide companies with access to our worldwide supercomputer network. This will help develop new advanced technologies and spread faster the AI among established champions. ECB will also play its role by maintaining Europe at the forefront of digital payment technology, including through the Digital Euro project.
In parallel, the regulatory burden will be illuminated by unprecedented efforts to simplify, starting next month. This will include a far -reaching simplification of legislation on sustainable finance reporting and depth zeal. And energy prices will descend through a series of measures to integrate the market, increase contracted energy and reduction of taxes.
This is just a shot of what’s ahead. Companies and households want to see the action – and there is a wave of shops. We can no longer swallow our forces with self -imposed handicaps. It’s too much about it. We are ready to do everything that is needed to bring Europe back on the right path.
