European Union leaders are gearing up to address the pressing need to catch up with global rivals in the race for new green and digital technologies. Former Italian Prime Minister Enrico Letta will present a comprehensive 147-page report outlining the EU’s shortfalls and proposing solutions to bridge the gap.
Letta emphasized the urgency of the situation, calling it a “last opportunity” for the bloc to make significant strides in the tech sector. The report highlights the threat of geopolitical tensions and protectionism, which could undermine the EU’s economic security and hinder its technological advancements.
The EU faces stiff competition from the US and China, with the former offering massive subsidies to attract investment and the latter dominating new tech supply chains. To address these challenges, EU leaders are set to unveil a nine-point plan that includes deepening the single market and creating capital markets and energy unions.
However, the effectiveness of these plans remains uncertain as past initiatives, such as the capital markets union, have stalled due to member states’ reluctance to relinquish control over national financial rules. Belgian Prime Minister Alexander De Croo stressed the importance of translating the report’s recommendations into concrete actions.
The European Commission estimates that an additional investment of 620 billion euros per year is needed for the green and digital transitions. BusinessEurope, a prominent lobby group, echoed the report’s call for a reboot of the single market and simpler EU rules.
Former ECB chief Mario Draghi emphasized the need for consolidation and collaboration to enhance EU competitiveness. He also advocated for investments in common goods like energy networks and a comprehensive strategy for securing essential resources.
The challenges ahead are significant, with Eurometaux warning that the EU will need to open new mines and processing plants to meet its critical mineral goals by 2030. The EU leaders’ response to these pressing issues will determine the bloc’s ability to compete on the global stage in the coming years.