Europaudvalget 2023-24
Ekstraordinært Det Europæiske Råd 17-18/4-24 Bilag 2
Offentligt
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INSIDE
European businesses
call for action
Open this
wraparound
to find this
week’s
edition of
POLITICO
APRIL 11-17, 2024
“Imagine if Europe was the center of
innovation – the world’s leading place
to discover, develop and use new
medicines. This would benefit
European patients, public budgets and
economic competitiveness. The coming
election is pivotal not just for life
science but for all of Europe’s industry.
We must make the right choices, or
Europe risks becoming a museum of
the past. Instead, let’s be a leader in
solving the challenges of tomorrow.”
Lars Fruergaard Jørgensen,
president and CEO at Novo Nordisk
“I am increasingly concerned by the
deteriorating competitiveness in Europe
and lack of growth mindset. In the
quest to revitalize the European Union’s
economy amid global competition, our
recommendation is to increase energy
efficiency and accelerate electrification.
This would improve Europe’s
competitiveness, increase demand for
green technologies and help deliver an
affordable, secure, and decarbonized
future.”
Kim Fausing, president and CEO
at Danfoss
Time is
running out
Europe is losing
so stop saying
there is still time to protect European prosperity
because one thing is certain
Europe is falling behind the U.S. and China
and it is no longer a given that
it’s possible for businesses to thrive here
because in the future
EU cannot compete globally
and it is foolish to presume that
There is hope for Europe
Now, read from bottom to top to turn
Europe’s future around
“We need regulation based on the
future, not the past. Biosolutions for a
healthier planet and healthier people
are already here. We need regulations
for the future to ensure the speed
and scalability of these green and
sustainable solutions and to strengthen
Europe’s competitiveness.”
Ester Baiget, president and CEO
at Novonesis
“The global market is moving fast, and
this is a critical moment for Europe.
While well placed to lead the green
transformation of our industries, it is
crucial that Europe does not stray off
the ambitious decarbonization course.
Europe needs to remain committed to
climate action while also embracing this
opportunity to re-establish Europe’s
competitive edge in the global market.”
Vincent Clerc, CEO at
A.P. Moller – Maersk
European elections June 6-9, 2024
Proposals to improve
EU’s competitiveness
 Ekstraordinært Det Europæiske Råd 17.-18. april 2024 - Bilag 2: Henvendelse af 15/4-24 fra Dansk Industri vedr. kampagnen "Time is running out"
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European
competitiveness
is under pressure
European industrial companies
are losing ground. There is a clear
preponderance of European industrial
companies indicating that their
competitive position has deteriorated
continuously. In 17 out of the last
20 quarters, a greater proportion of
European industrial companies have
experienced a deterioration in their
competitiveness on markets outside the
EU than there are companies that have
experienced an improvement.
Source: European Commission,
Business Survey, January 2024
European industrial companies’ competitive position outside EU
Net figures in percent (differences between the percentage of respondents giving
positive and negative replies)
Source: European Commission, Business Surveys conducted by national institutes in the
member countries and the candidate countries based on harmonized questionnaires
Time to turn Europe’s future around
The EU imperative is to solve major challenges. Recent crises have proven the value
and strength of European synergy.
But the world faces unprecedented change. The EU is at a tipping point – caught between
external powers and disenchantment with the EU project. The role of the EU, Europe’s
prosperity and growth, and our safety is being challenged. Europe has everything to lose.
The pillars of the EU have begun to teeter. Geopolitical trends, compounded by bureaucratic
‘red tape’, have exposed Europe’s fragility. As a result, in recent years we have seen valuable
businesses and their investments moving outside the EU.
Strengthening Europe in the world will be the Parliament’s primary task in the coming years.
By balancing European resilience with openness and delivery of our green ambitions, Europe
has the chance to redefine itself as a beacon of economic and political light. By making
Europe more attractive to investors, Europe will have everything to win.
The European elections on June 6-9 will be decisive to turn
Europe’s future around.
The trends are worrying for European businesses
Slower productivity growth
Over the past two decades, Europe has lagged
behind the U.S. in productivity development.
Productivity is crucial for the development of
prosperity. On average, EU residents have about
30 percent less wealth than Americans.
Source: Financial Times “Europe faces ‘competitiveness
crisis’ as EU widens productivity gap”, March 2024
Less R&D spending
Far too little is invested in R&D in the EU. All
major global competitors of the EU assign a higher
priority to R&D investments. The EU spends 2.2
percent of the GDP on R&D. In the U.S. it is 3.5
percent.
Source: OECD data: Gross domestic spending on R&D
Longer approval procedures
Bringing new innovative green products to the market
takes up to 10 years in the EU. Other regions deliver
biosolutions within two to three years.
Source: IMBA Global
Fewer generative AI companies
At the end of 2023, 35 generative AI companies
had scaled up in the U.S., while only three had
scaled up in Europe.
Source: McKinsey: “Accelerating Europe:
Competitiveness for a new era”, 2024
And time is running out
Dependent on other regions for raw materials
Europe accounts for only 2 percent of global mining
and processing of 10 critical materials, compared to
China’s 14 percent.
Source: McKinsey: “Accelerating Europe: Competitiveness
for a new era”, 2024
Higher energy prices
Both industrial electricity and gas prices in early
2024 remained more than double their pre-Covid
levels compared to average increases of around
30 percent in the US.
Source: BusinessEurope: “Reform Barometer”,
March 2024.
Proposals to improve
EU’s competitiveness
An increasing regulatory burden
Between 2017 and 2022 European companies were
introduced to 850 new regulatory obligations.
Danish Industry – DI – is Denmark’s largest, most representative and most influential business and employers’
organization, covering manufacturing as well as service industries across sectors such as transport, energy, IT,
health, trade and professional services.
Source: DI, “Increasing administrative burden for Danish
companies”, October 2023