Strengthening EU digital competitiveness : stoking the engine

Abstract

Concerns over declining EU competitiveness in the digital world compared to other major economies have been widespread for many years. While Europe has substantial research capabilities and skills, we have failed to incubate global champions that could compare with those of our global trading partners and rivals, the USA and China. In June 2024, Europe will complete one five-year mandate for the European Parliament and Commission and will embark on the next. It is therefore a good time to take stock and to consider forward-looking approaches to remedying Europe’s shortfalls as regards our competitiveness in the digital world. The Commission has already asked two prominent Europeans, Mario Draghi and Enrico Letta, to produce blue ribbon reports to this end. In this vein, and taking into account the just-released Letta Report, this report seeks to dig deep into well-known EU shortfalls such as weak capital markets, lack of access to skills, burdensome insolvency rules that vary greatly among the Member States, regulatory burdens, remaining obstacles to the Single Market, and inadequate technical infrastructure. It reviews mitigation measures that have been attempted to date, reflects on why they have not yet achieved the desired results, and reflects on possible solutions that have not been adequately reflected in EU and Member State policy to date.