Key Impact Points
- Competitiveness Crisis: Europe has seen a significant decline in global competitiveness, with its share of the world’s most valuable companies dropping from 41 to just 15 since the start of the century.
- Policy Gaps: EU policymakers need to address core shortcomings in policy planning, especially within the European Commission, to restore Europe’s standing as an economic powerhouse.
- Urgency for Change: The European Commission’s newly announced “clean industrial deal” may be the last chance to reverse the trend and drive Europe’s green transition.
Overview
In a recent op-ed titled “The EU clean industrial deal needs a policy makeover,” Ann Mettler, Vice President at Breakthrough Energy, outlines the critical challenges facing the European Union as it grapples with a long-standing competitiveness crisis. Europe, once home to 41 of the world’s 100 most valuable companies, now claims just 15, excluding Russia and Turkey.
The Competitiveness Crisis
Mettler points out that Europe is at a make-or-break moment. The forthcoming Draghi report, led by former Italian Prime Minister Mario Draghi, is expected to detail Europe’s decline in global competitiveness and its profound implications for the continent’s green transition. Against this backdrop, the European Commission has announced a new clean industrial deal, aimed at boosting Europe’s competitiveness in the green economy.
Yet, Mettler argues that this initiative may fall short if it fails to recognize the policy shortcomings of the past two decades.
Core Areas for Policy Reform
Mettler identifies three core areas that policymakers must address to make the new clean industrial deal a success:
- Policy Planning: The European Commission’s current approach, which typically places a single directorate-general in charge of policy execution, is too narrow and ineffective for addressing complex, cross-cutting challenges like competitiveness and green transitions.
- Broader Coordination: Mettler emphasizes the need for better coordination between multiple departments to create comprehensive and future-focused policies.
- Learning from the Past: With multiple failed economic reboots behind them, Mettler warns that Brussels must demonstrate a willingness to learn from past mistakes if Europe is to reclaim its status as an economic and technological powerhouse.
Related Article: Grid Infrastructure and Energy Storage Dominate Clean Energy VC Investments Amid Policy Shifts
Conclusion
As the EU approaches a critical juncture in its economic journey, the success of the clean industrial deal will depend on its ability to address these foundational policy issues. Without a bold overhaul in planning and execution, Mettler warns that the EU risks cementing its decline rather than reclaiming its position on the global stage.
For more details, read Mettler’s full op-ed on Sustainable Views.
