Kathryn Lynch’s Post

Mario Draghi's report on The future of European Competitiveness just dropped. A delightful example of Problem Identification, Strategy Definition and (recommended) Implementation Plan communication. Summaries are appearing on most news sites, including this one on the Financial Times that does a good job at it: https://lnkd.in/dj5s43Ma One can find the full report on the EU Commission website and I'm very much appreciating a #communication strategy constructed to facilitate all audiences, from the (most common) high-level reader all the way to an in-depth data-driven assessment, to engage with and understand the work done: 1. Mario Draghi himself summarised what they did, the proposed #strategy and recommendations on The Economist (paywalled by free upon registration) https://lnkd.in/dmwmisaC 2. The Report "A #competitiveness strategy for Europe" outlines the 3 key parts of the report (Identification, Strategy, Implementation) and can be downloaded at https://lnkd.in/d9N2qSPW These 69 pages are very clearly structured, easy to follow and feature plenty of data and graphics to support anyone wanting to go beyond words to understand why the proposed strategy is what it is. 3. At the same link, a second "In-depth analysis and recommendations", 328 pages-long document, rather than repeating the above in more detail, proceeds at segmenting the approach from a different angle, looking at individual industries first, and problems & solutions later. Finally, and fully aware that most are much better than me at summarising this document, I wanted to share a comment on the content (from file 2.). #Draghi and the team start by making what to me is the key point of this analysis: #Europe is facing an existential crisis because "If Europe cannot become more productive, we will be forced to choose. We 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. We will have to scale back some, if not all, of our ambitions." The 3 parts of the proposed Strategy are: - Closing the #Innovation Gap - Joint #decarbonization and competitiveness plan - Increased security and reduces dependencies And I can't help but seeing that at its core are innovation & growth enabled by a step change in shared EU policies. An enjoyable and very instructive read, not just for what it says (which is open to interpretation and debate) but also for how the process was conducted, arguments supported and the outcome communicated.

Yesterday, the EU presented the new path for innovation, competitiveness, and sustainable development. Budapest Declaration on the New European Competitiveness Deal is an ambitious step in the development of the European Union and the first document of its kind in history: all 27 states have been able to agree on joint, accelerated innovative and sustainable development. The action plan is built on the reports of Mario Draghi and Enrico Letta, which identified challenges and proposed unique growth strategies. Among the 12 actions, I would highlight the following: 1. Countries cannot succeed in innovation, investment, and sustainable development alone. The EU will create a Single Market, starting with startups and high-tech companies. Nowadays such companies must undergo homologation and certification in each of the 27 countries individually – harsh and pricy burden. 2. Accelerated development of the Savings and Investments Union and the Capital Markets Union. These unions will enable the EU to gain a competitive advantage in attracting cost-effective, pan-European investments in enterprises, SMEs, startups, and particularly in high-tech companies. 3. EU aims to become to the global leader in research and innovation, especially in disruptive technologies. Right for Innovation and exploration is proclaimed “fifth freedom” of mankind. 4. Strengthening of the EU's technological capabilities, acceleration of digital transformation, new data economy, innovative technologies. And last but not least: EU countries have acknowledged their commitment to a circular and resource-efficient economy. The European Commission has been asked to develop the world's first Circular Economy Act. https://lnkd.in/d7qXrjuT #EuropeanCompetitiveness #NECD #Budapest #cdpcenter #innovation #rnd #investments #sustainability #startup

Enrico Letta’s comprehensive report, “Much More Than a Market,” underscores the urgent need for a reinvigorated Single Market, one that embraces contemporary challenges and seizes new opportunities. The report advocates for transformative changes. For #Malta, a small island nation within the EU, the proposed reforms present both significant opportunities and formidable challenges. In a series of articles, Stephanie Fabri and I dissect this report and its implications, challenges and opportunities for Malta. Thanks to BusinessNow.mt.

#FreshFromThePress Super-Mario does it again! A report on EU competitiveness which details: 1/ The weak points of EU competitiveness 2/ Why massive productivity improvements are essential 3/ Concrete propositions for the required new framework Key takeaways on the four building blocks to achieve an effective and collective EU industry strategy: #1 Building Block Full implementation of the #SingleMarket 🔥 Remaining trade frictions in the EU mean that Europe is leaving around 10% of potential GDP on the table. 💡 For an in-depth analysis of the Single Market conundrum, dive deep into "Much more than a market report" by Enrico Letta (Publication Date: April 2024, see link in comment) #2 Building Block Align industrial, competition, and trade policies to fulfill the overall strategy 💡 Important Projects of Common Interest (#IPCEI) should be expanded to include all forms of innovation that could push Europe to the frontier in strategically important sectors and benefit from EU financing. #3 Building Block Finance the main areas for action, requiring massive investments unseen for half a century in Europe — such as the defense industry, cross-border energy grids, computing, and connectivity infrastructure. 🔥 To digitalize and decarbonize the economy and boost the EU's defense capacity, the total investment-to-GDP rate will need to rise by around 5 percentage points per year, reaching levels last seen in the 1960s and 70s. 💡 A 2% increase in the level of total factor productivity within ten years could already be sufficient to cover up to one-third of the required fiscal spending. #4 Building Block Reform the EU’s governance by increasing the depth of coordination and reducing the regulatory burden. 🔥 More than 60% of EU companies view regulation as an obstacle to investment, with 55% of SMEs identifying regulatory obstacles and the administrative burden as their greatest challenges. 🔥 The average timeline to decide and implement a new law is about 19 months due to outdated decision-making processes. ➡ "EU countries are already responding to this new environment with more assertive policies, but they are doing so in a fragmented way that undermines collective effectiveness." This week’s must-read for thought-provoking insights!

As we approach June’s #EUelection, what can business do as the next five weeks shape Europe for the five years to come? My colleagues Adam Waters, Matt Williams, Laure Botella and Pierre Gruson share their thoughts on how business could be impacted by changes to capital markets, increased access to investment, a more industrial Green Deal, and a focus on tech innovation.

EU NEEDS RADICAL CHANGE... prelude to upcoming Draghi-report on EU competitiveness: - We have turned inwards, seeing our competitors among ourselves, even in sectors like defence and energy where we have profound common interests. At the same time, we have not looked outwards enough; - In a benign international environment, we trusted 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; - 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 at worst, they are designed to make us permanently dependent on them; - China, 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; - With our competitors moving fast, we must also assess priorities. Immediate actions are needed in the sectors with the highest exposure to green, digital and security challenges. In my report, we are focusing on ten of these macro-sectors in the European economy. Each sector requires specific reforms and tools. Yet in our analysis there are three emerging common threads for policy interventions: 1. Enabling scale 2. Providing public goods 3. Securing supply of essential resources and inputs

As we approach June’s #EUelection, what can business do as the next five weeks shape Europe for the five years to come? Rising geopolitical tensions, supply chain disruptions and looming right-wing populism set the backdrop for a fundamental reshaping of the EU Single Market, as Europe works to advance its competitiveness, economic security, and open strategic autonomy. Kekst CNC Brussels experts Adam Waters, Laure Botella, Matt Williams, and Pierre Gruson, analyze how business could be impacted by changes to capital markets, increased access to investment, a more industrial Green Deal, and a focus on tech innovation. Read the full blog here> https://lnkd.in/ewnR55Ap

🖊 Budapest Declaration: A New Chapter for European Competitiveness 🤝 Last week, on 8 November 2024, EU leaders met in Budapest to adopt the Budapest Declaration, a bold commitment to enhance Europe’s competitive edge and closing critical innovation gaps. Guided by key insights from Enrico Letta and Mario Draghi’s reports, leaders underscored the need for decisive action to bridge Europe’s competitiveness gap. Key drivers of this new vision for A.I.S.E. include: 💡 Enhancing the Single Market: A strategy to unlock its potential as an innovation driver, with a roadmap expected by June 2025.  💡Savings and Investments Union: Creating integrated capital markets to support #SMEs and startups, enabling them to scale and innovate.  💡Regulatory Simplification: Aiming to reduce regulatory burdens on businesses, especially SMEs, by cutting reporting requirements by 25% by mid-2025.  💡Circular Economy: Establishing a market for secondary materials to promote sustainability.  💡Digital Transformation: Accelerating digital initiatives while addressing privacy and security.  💡Trade Policy: Promoting open and sustainable trade to enhance economic security. Together, these initiatives mark a decisive step forward for a resilient, innovative Europe and we will continue collaborating to reach these goals, with a focus on maintaining Europe's competitiveness.  Read the European Council press release here: https://lnkd.in/dHgzNjGr #AISE #EUGrowth #Innovation #CircularEconomy #DigitalTransformation #EUpublicaffairs #EUCO #HU24EU 

Last night's Maastricht Debate kicked off full campaign mode as we move toward June's European election. For #tech, as the discourse shifts from #regulation to #implementation, how could policymakers respond after the election to ensure #funding is unlocked to promote the competitiveness of Europe's digital eco-system? Could an #industrialpolicy approach as part of a future #DigitalNetworksAct foster the integration in telecoms called for by Mr. Letta? And might growing #economicsecurity concerns in strategic tech sectors give European companies a greater share of voice?

EU Leaders agreed today the Budapest Declaration on competitiveness, following on from the comprehensive economic reports of Enrico Letta & Mario Draghi👇 The Declaration welcomes both reports, as "wake-up calls" that identify critical economic challenges the EU faces, above all the urgent need to close the productivity & innovation gap with our global competitors. In the face of new geopolitical realities, Leaders called for all EU instruments and policies to be harnessed, in a comprehensive and coherent manner, to ensure the Union's common economic prosperity and boost its competitiveness. This requires decisive action being taken by the EU institutions, Member States and stakeholders in up to a dozen areas: the Single Market, Capital Markets Union, industrial renewal, defence, R&I, energy, circular economy, digital transformation, skills, trade and agriculture policies. Measures under these drivers of competitiveness need to be underpinned by a smart regulatory environment and by a drastic reduction in administrative, regulatory and reporting burdens for business. Significant financial investment will also be required. The Declaration states that "the need for a unified response has never been more compelling". EU Leaders started their meeting in Budapest by expressing their deepest condolences to the people of Spain following storm DANA. Here is the 3-page text of the 8 November Budapest Declaration on the New European Competitiveness Deal👇