European leaders demand urgent action for a competitive EU

On November 22, 2024, major European industrial federations including the French Medef, Italian Confindustria, and German BDI convened during the 6th edition of the trilateral Economic Forum in Paris. They expressed significant concern regarding the future economic competitiveness of the European Union, especially in light of Donald Trump’s anticipated presidency beginning January 2025. This gathering aimed to address the perception that the EU is in danger of economic decline and to formulate strategies to counteract this potential fallout. The document they co-signed outlines four key priorities: enhancing competitiveness, simplifying regulations, nurturing innovation, and increasing investment levels. Among their suggestions for improvement, they highlighted the need for measures that would facilitate access to cheaper energy sources, advocating for the inclusion of nuclear energy alongside other decarbonized solutions. They went further to propose an evaluation of the over 13,000 laws enacted by the EU since 2019, suggesting the elimination of those that have not met their intended goals. Investment in research and development was emphasized as critical, with a target of increasing R&D investment to 3% of GDP. Additionally, the federations call for the establishment of a single capital market to stimulate investments in emerging technologies. This comprehensive approach aims to revive the competitiveness of European businesses pressed by global economic changes and the pressing need to innovate alongside increased regulatory pressures. The urgency of these recommendations is amplified by the approaching political shift in the U.S., which European leaders perceive as a potential threat to their economic power. As Trump takes office, the collaboration among these influential business leaders signifies a concerted effort to bolster the EU’s resilience and adaptability in an increasingly competitive global landscape.