Top EU companies demand reforms to boost investments
- Twenty-eight major EU companies presented their declaration to leaders in Copenhagen, urging for reforms to strengthen competitiveness.
- Their five requests focus on simplifying regulations and enhancing investment conditions, including cheaper energy and technological advancement.
- The companies promise to boost investments by 50% by 2030 if the EU addresses their concerns.
Recently, twenty-eight of the largest companies in the European Union declared their intentions to enhance investments in Europe by 50 percent by the year 2030. This declaration was presented to EU leaders during a meeting at the House of Industry in Copenhagen. The leaders receiving the declaration included Danish Prime Minister Mette Frederiksen, President of the European Commission Ursula von der Leyen, French President Emmanuel Macron, and Polish Prime Minister Donald Tusk. The companies are seeking significant reforms to enhance Europe’s competitiveness and security. They made five major requests concerning regulatory simplification, increased investment incentives, reduced energy costs, a bolstered defense industry, and improved technological resilience. Among the companies advocating for these changes are prominent firms such as Novo Nordisk, Maersk, and Ørsted, along with various defense contractors. In their demands, the 28 companies pointed out that the current legislative environment is convoluted, with many overlapping or contradictory regulations that create barriers to investment. They believe that reforming this landscape will enable them to contribute more substantially to the EU economy. An analysis conducted prior to this declaration indicated that the EU has lagged significantly in investment compared to the USA, with a deficiency of approximately 4,800 billion euros since the turn of the millennium. This gap means that, for the EU to catch up, annual investments must increase by about 800 billion euros over the next six years. The urgency for such reforms is further emphasized by concerns raised in the recent Draghi report. Former European Central Bank President Mario Draghi warned that the EU risks falling behind both China and the USA in terms of investment and technological advancement if significant reforms are not implemented. The participating companies see the request for reforms as essential to not only boost their investments but also to ensure the overall economic resilience of the region in a global competitive landscape. If the European Union responds positively to the demands, the commitment from these major companies could present a significant shift in the investment strategy within Europe, potentially allowing the EU to close the investment gap with the USA. The collaboration between these companies and EU leaders could pave the way for stronger economic growth and a more resilient industrial sector, provided the necessary changes are enacted swiftly and effectively.