Economic competitiveness challenges cut through EU domestic agenda

AMID the twin shocks of the pandemic and Russia’s invasion of Ukraine, the Green New Deal became the signature initiative of Ursula von der Leyen’s first term as European Commission president from 2019 to 2024. However, her second half-decade in power is likely to be defined by much wider, growing global competitiveness challenges now facing the EU bloc.

Only two weeks into its first 100 days in power, the new Commission has already been buoyed – economically – by the agreement earlier this month of a trade deal with the Mercosur bloc in South America. However, the impact of that agreement will not be felt for some time given that a potentially very difficult ratification process now lies ahead with France seeking to build a blocking minority within the EU-27.

On the competitiveness agenda, what von der Leyen hopes to signal in the first 100 days is the EU’s determination to try to realise its climate and environmental commitment, and restore its economic vitality. Her ability to navigate these challenges will be pivotal in determining whether the EU can fulfil its visions of industrial resurgence and strategic autonomy. Key areas of specific focus include the new Clean Industrial Deal; delivering a comprehensive agriculture and food strategy; fostering greater cohesion in EU defence strategy and spending; and expanding access to EU supercomputing resources for AI startups.