Ben Butters’ Post

Absolutely right. SMEs particularly suffer from overregulation, and somehow the EU must try to wean itself off an ever-increasing pipeline of regulation, and take a hard look at what is really needed to boost productivity and growth, rather than what looked like a good idea at the time. The one-in one-out system turned out to be a misleading exercise, striking out already dead regulation while piling on much more onerous new rules. The Commission has to change its internal reward system to get away from officials winning their spurs through proposing new legislation, and as an institution and individually take seriously the need for better regulation, rather than thwarting stakeholder groups who question a proposal and/or ducking altogether the need for searching impact assessment.

Earlier this week, the much-anticipated report on the way forward for Europe’s ailing competitiveness, authored by Mario Draghi, finally came out. Expectations for what’s next are high, but above all the report should be seen as a – last? – wakeup call for Europe to do better and stop thinking everything can be solved with more of the same: more regulation, more self doubt, more protectionism. It’s high time the EU actually starts to listen to what industry and employers, innovators and market leaders need to succeed in the EU. https://lnkd.in/ejJabyJA

EU competitiveness: Looking ahead Report by Mario Draghi https://lnkd.in/eAk84kkG Introduction Today, Europe stands united in its pursuit of inclusive economic growth, focusing on - sustainable competitiveness - economic security - open strategic autonomy - fair competition They all serve as pillars of prosperity. The vision that drives Europe forward is to create conditions where businesses thrive, the environment is protected, and everyone has an equal chance at success. Sustainable competitiveness should make sure businesses are productive and environmentally friendly. Economic security ensures that our economy can handle challenges and protect jobs. With open strategic autonomy, Europe is not just open for business; but is shaping a better, fairer world. Way forward for EU's competitiveness Europe's strong system of rights and values offers equal opportunities and leads the way in social inclusion. Our institutions, economic frameworks, and commitment to the rule of law create an environment where businesses can thrive and people can prosper. Top-notch infrastructure and a skilled workforce give Europe its competitive edge. In a changing world with new challenges, the European Union is focused on staying competitive and prosperous. We're working hard to maintain our leadership globally and to make sure we have control over our own future. Therefore Europe needs to look further ahead and set out how to remain competitive. This is why Mario Draghi - former European Central Bank President and one of Europe's great economic minds - was tasked by the European Commission to prepare a report of his personal vision on the future of European competitiveness. The future of European competitiveness: Report by Mario Draghi The report looks at the challenges faced by the industry and companies in the Single Market. The findings of the report will contribute to the Commission's work on a new plan for Europe's sustainable prosperity and competitiveness. And in particular, to the development of the new Clean Industrial Deal for competitive industries and quality jobs, which will be presented in the first 100 days of the new Commission mandate. Executive summary (69 pages): https://lnkd.in/ehCNzKk8 Full report (328 pages): https://lnkd.in/eUYkgJXM

I've scanned the "The future of European competitiveness" report released yesterday, and listened to Mario Draghi's presentation and Q&A. It's a valuable and thoughtful document - up to a point. The report excels in analyzing EU's macro situation - competitiveness, industry, security, population decline, and geopolitics. No surprise - this is home turf for Mr Draghi, and he's as smart as it comes. His mastery of the material is palpable in the press conference video. However, the report is let down by being fundamentally anchored in outdated paradigms: - Assumes perpetual GDP growth as the sole indicator of progress - Overconfident in a smooth "clean transition" being both attainable and adequate in vision. - Underestimates the combined impact of AI, climate change, biodiversity loss, and resource limitations.  - Crucially, while referencing skills & training, it largely overlooks the societal dimensions likely to emerge from these forces, and assumes a workably-static social contract. In summary, it seems to assume that something like the status quo is, with a lot of investment and work, largely maintainable. That seems a tad .. wrong. These are observations, more than criticisms. The report is written from deep within a given set of paradigms, and in any case it's only going to go so far in 66 pages.  It's up to all of us to take the best of it and put it to work, while extending the vision to ensure those "concrete structures" get built on valid foundations, not on paradigms that are already close to exhaustion. From an Irish perspective, this presents both an opportunity and a necessity for leadership. We must leverage  - our strengths in research, education, technology and innovation;  - our business and impact communities;  - the Irish abroad and our global diaspora; and  - our corporate and diplomatic networks,   to help move both Ireland and the EU forward within both those constraints that the report highlights, and those that it misses. Ireland can lead in building pathways towards a post-growth future that balances economic vitality with regeneration, environmental sustainability, social cohesion and human flourishing. It's time to play a bigger game - for everyone's sake. Like many things, that begins at home.  Thoughts? How must we influence EU strategy to better prepare for the complex challenges ahead, while helping accelerate and attain the best parts? And, what is Ireland's response to this report; what is Ireland's equivalent strategy; how can we ourselves move towards - and represent - what we might wish the EU, and the world, to become? #EU #Competitiveness #Leadership #Future #Ireland #Irish #OneMillionIrish #Kune Kristian Ryan Mike Molloy Andrew Sharkey Derek Peaple Leslie P. Alison (Ali) Harvey 🇪🇺 Colm Casey Raymond Sexton Paul Finnegan Paidi O Reilly Tony Moroney David Ross - VUCA Strategist. Corporate Peacemaker John Morley Dr Shirley Gallagher (FIEMA)

European Parliament Think Tank (EPTT)--Briefing EU competitiveness: Issues and challenges [9 September 2024] https://lnkd.in/gPy_7aR2 or https://lnkd.in/gNyS3uuj Strengthening the European Union's economy in the face of rising global economic and political competition and managing the 'twin transitions' of the digital and green transformation is a key challenge for the 2024-2029 legislative term. This briefing highlights key aspects of the debate around strengthening the EU's economy. While the term 'EU competitiveness' is not clearly defined, there is broad agreement that it entails a range of policies focusing on, but not confined to, the EU's single market. The single market is far from complete, and abolishing barriers to trade would allow for efficiencies and economies of scale. We also look at other policies that are essential when it comes to safeguarding and strengthening EU competitiveness, in particular its industrial and energy policies, and outline the discussion around EU competition and investment policy. In doing so, it becomes clear that strengthening EU competitiveness is not a technical process confined to individual policies. Instead, it opens up deeply political discussions over the changing nature of the EU's economic and political model, with long-term distributional consequences. Given its very nature, there is no single answer to the competitiveness challenge confronting the EU. Without claiming to be comprehensive, this briefing rather seeks to provide a structure to the debate and point to some of the fundamental political and economic questions EU policymakers need to address during the 2024-2029 political term.

Unlocking competitiveness will not happen without a new sense of political courage and vision [Promoted content]: Are we finally seeing the light of a thriving EU economy at the end of the tunnel? With all the attention on the Letta and the Draghi reports, the next Commission's political guidelines, the EU Presidencies' priorities and drumming conclusions of the European Council, competitiveness is the word on everybody's mouth.

#MustRead: follow #MarioDraghi for a new Europe "Good morning to everybody, This, in essence, is the first time that I have the opportunity to start sharing with you the overall, not philosophy, we are not there yet, but how the overall design and philosophy of the report is shaping out. For a long time, competitiveness has been a contentious issue for Europe. In 1994, the economist, Nobel-prized, Paul Krugman called focusing on competitiveness a “dangerous obsession”. His argument was that long-term growth comes from raising productivity, which benefits everyone, rather than through trying to improve your relative position against others and capture their share of growth. The approach we took to competitiveness in Europe after the sovereign debt crisis seemed to prove his point. We pursued a deliberate strategy of trying to lower wage costs relative to each other – and combined this together with a procyclical fiscal policy - the net effect was only to weaken our own domestic demand and undermine our social model. The key issue is not that competitiveness is a flawed concept. It is that Europe has had the wrong focus. We have turned inwards, seeing our competitors as ourselves, even in sectors like defence and energy where we have profound common interests. At the same time, we have not looked outwards enough: with a positive trade balance, after all we did not see our external competitiveness as a serious policy question. In a benign international environment, we trusted in the global level playing field and the rules-based international order, expecting that others would do the same. But now the world is changing rapidly, and it has caught us by surprise. Most importantly, other regions are no longer playing by the rules and are actively devising policies to enhance their competitive position. At best, these policies are designed to re-direct investment towards their own economies at the expense of ours; and worst, they are designed to make us permanently dependent on them. China, for example, is aiming to capture and internalise all parts of the supply chain in green and advanced technologies and is securing the access to the required resources. This rapid supply expansion is leading to significant overcapacity in multiple sectors and threatening to undercut our industries. The United States, for its part, are using large-scale industrial policy to attract high-value domestic manufacturing capacity within the borders – including that of European firms – while using protectionism to shut out competitors and deploying its geopolitical power to re-orient and secure supply chains. We have never had an equivalent “Industrial Deal” at the European Union level, even though the Commission has been doing everything in its power to fill this gap. As such, despite a number of positive initiatives that are underway, we are still lacking an overall strategy for how to respond in..." Full Keynote Speech: 👉https://bit.ly/3JirnBD

How can we tackle the challenges that European industries face❓   EU ministers are discussing the future of European industry and businesses at today’s Competitiveness Council. This summit takes place at a critical time, as policymakers continue to shape the agenda for the next five years.   The recent Letta and Draghi reports have highlighted the need to get the EU’s economy back on track, urgently. As this letter from BusinessEurope highlights, this means taking quick and concrete steps to reduce regulatory burden.   “Otherwise, the debate on reduction of burdens will remain a debate only”.   Governments and industry must work together to address Europe’s #competitiveness challenge and unlock its full potential.   Full letter here: https://lnkd.in/eUbjGbeT

To discuss the content of yesterday's much anticipated 'The Future of European Competitiveness,' report by former Italian Prime Minister and ECB head, Mario Draghi, live on radio this morning at 6.30am, I was promised a lot of industrial strength coffee. In fairness to Presenter Joe Lynam, he kept his word! A pleasure to join Joe on his Newstalk Breakfast Business show earlier to discuss yesterday's 400 page 'Draghi Report,' launch. Tasked by European Commission President Ursula von der Leyen to lay out a vision and a roadmap on how to make the European Union more competitive, Draghi's report is published against the backdrop of a decline in EU competitiveness, innovation, growth and development and an acceptance that it has fallen behind the USA on many metrics whilst simultaneously facing an increase in challenges across multiple areas from China. In Draghi's wide ranging report, he lays out in stark and refreshingly frank language on how the choices the EU needs to take are 'an existential challenge;' namely, build out the CMU, complete the single market, in order for the EU to fundamentally become more productive. Draghi is clear in his analysis: If we don't act, Europe will 'not be able to become, at once, a leader in new technologies, a beacon of climate responsibility and an independent player on the world stage. We will not be able to finance our social model. ...Europe’s fundamental values are prosperity, equity, freedom, peace and democracy in a sustainable environment. The EU exists to ensure that Europeans can always benefit from these fundamental rights. If Europe can no longer provide them to its people – or has to trade off one against the other – it will have lost its reason for being. The only way to meet this challenge is to grow and become more productive, preserving our values of equity and social inclusion. ' He extols on how 'the only way to become more productive is for Europe to radically change,' through additional spending and investment of up to €800 billion a year, a reduction in regulation and red tape to make the EU more agile, flexible and fit for purpose. The report is very clear on the opportunities that exist for greater political co-operation to improve economic efficiency that benefits all EU citizens. Whilst all his recommendations and proposals will not curry unanimous favour across the different member states, as the challenge of navigating divergent national interests and the requirement for unanimity is a reality, this report nonetheless highlights the price and cost of inaction. In his foreword conclusion, he states very clearly: ' There are different constellations in which we can move forward. But what we cannot do is fail to move forward at all.' #Competitiveness #DraghiReport #Europe #EuropeanUnion #Growth #Innovation #Democracy ⬇ https://lnkd.in/efSPEZe3

On 9 September, Mario Draghi published a new report on European competitiveness. André Wolf argues that while the report identifies many of the key challenges facing Europe, it contains questionable policy solutions. By presenting tailor-made policy solutions for the growth of ten pre-selected sectors, Draghi is proposing a renaissance of sectoral, top-down industrial policy. This is an approach that has long been buried by advocates of a new industrial policy due to the lack of information available to policymakers and the high risk of policy being hijacked by vested interests. Moreover, the proposed policy mix does not include many innovative measures. There is a persistent focus on the need for member states to join forces to support large-scale transformative investments. This is the basis for the report’s general call for a new European Competitiveness Fund. A collective contribution may be justified, however the report lacks a fundamental economic justification for the role of the state as an active investor. The mere reference to a lack of competitiveness of European companies in supposed growth sectors is an insufficient argument for such a blurring of roles. https://lnkd.in/gajHd9ma