The European Union aims to revamp its economy with a focus on “decarbonisation” to compete with global powers like the U.S. and China, said European Commission President Ursula von der Leyen.
Speaking to the European Parliament on November 27, she acknowledged that Europe is lagging behind, as highlighted in a September report by former European Central Bank head Mario Draghi on the EU’s competitiveness.
Von der Leyen emphasized her commitment to the EU’s “Green Deal,” identifying decarbonisation as a key pillar of her new “Competitiveness Compass.” She outlined plans for a “Clean Industrial Deal” within the first 100 days of her presidency. “We must and will stay the course on the goals of the European Green Deal,” she asserted, adding that the EU needs to “better accompany people and business along the way.”
The president also criticized barriers hindering the growth of EU tech startups, lamenting the challenges they face in scaling up compared to their U.S. counterparts. “A start-up from California can expand and raise money all across the United States. But a start-up in Europe has to deal with 27 different national barriers,” she said, pointing to the need for streamlined regulations. To address this, she announced the appointment of a Commissioner for Start-Ups, Research, and Innovation.
However, the EU’s industrial landscape remains under pressure. In Germany, soaring energy costs and trade tensions with China have caused major setbacks. Volkswagen has closed some factories, ThyssenKrupp plans to cut 11,000 jobs by 2030, and EV battery company Northvolt is declaring bankruptcy, costing the EU millions in taxpayer funds.
Amid these challenges, von der Leyen remains optimistic about transforming Europe into a leader in green technology and innovation, urging member states to unify in tackling the economic and environmental hurdles ahead.
