April 7, 2025

The following is a press release:

In response to growing global competition and new geopolitical dynamics, the European Committee of the Regions (CoR) urged immediate action to boost EU competitiveness during a debate on a place-based approach to competitiveness with Enrico Letta, President of the Jacques Delors Institute and former Prime Minister of Italy. The CoR also adopted a resolution on the Competitiveness Compass during the plenary session on 3 April, stressing the need for stronger regional involvement and less centralised decision-making.

Local and regional leaders welcomed the key priorities outlined in the Competitiveness Compass, presented by the European Commission, but warned that decision-making should not become too centralised, leaving out the voices of local and regional authorities. During the debate, they stressed that promoting competitiveness and strengthening territorial, economic and social cohesion are intertwined and essential elements for the functioning and further development of the Single Market. They also underlined that local and regional authorities play a key role in driving innovation, economic growth, and investment in their communities, ensuring fair opportunities across all areas of the EU.

CoR members raised their concern that current funding for competitiveness efforts may be far below the estimated €750-800 billion per year needed, as highlighted in the Draghi report, and called for more private investment and discussions on issuing common EU debt to finance joint projects in the future. Furthermore, high regulatory burdens continue to be a major concern for businesses, CoR members stressed, and made clear the importance of simplifying rules while maintaining strong social, environmental, and economic standards.

The need for EU funding to support cross-border projects that connect regional innovation hubs was further emphasised and CoR members highlighted the importance of a strong and resilient Single Market, warning against protectionist policies by Member States that create trade barriers. Cutting red tape and simplifying cross-border business operations will be crucial for small and medium-sized enterprises, while fostering education and skills development — where local and regional authorities play a key role — will ensure workers are well-prepared for the future job market.

Quotes

Kata Tüttő (HU/PES), President of the European Committee of the Regions: "Enrico Letta's report Much more than a market highlights the crucial role of regions and cities in the European project. He put forward a "fifth freedom"—the free movement of knowledge, education, research, and innovation—closely tied to the "right to stay," ensuring all Europeans can build their lives where they are rooted. Competitiveness and cohesion go hand in hand, making investment in local economies and leadership essential. The new U.S. tariffs mark the beginning of a new storm in an already unsettled global economy—one that threatens to tear at the economic and social fabric of our communities. In these turbulent winds, increased flexibility in regional investment can act like a stabilising anchor, allowing local and regional leaders to respond swiftly to shifting tides. More than ever, a stronger Cohesion Policy is key for Europe's competitiveness but for the future of the whole European Project."

Enrico Letta, President of the Jacques Delors Institute and former Prime Minister of Italy: “Security is a common thread running through my Report on the future of the Single Market. But security is not only about defence – it also includes energy security, the fight against climate change, technological sovereignty, social cohesion, and the ability to shield our businesses from excessive bureaucracy and unfair competition. The proposal to integrate finance, energy, and telecommunications at the European level – three sectors that have long remained at the margins of the Single Market – moves precisely in this direction. Today, only a truly European scale can protect our strategic interests and ensure our collective security. The tariffs announced by President Trump are a stark wake-up call: Europe must act with unity and ambition to safeguard its model, its competitiveness, and its citizens. This also means that all EU regions must benefit from integration and contribute to the Union’s growth and development – no region should be left behind. That’s why cohesion funds are essential, and why a true “freedom to stay” must be guaranteed for those who wish to contribute to the development of their local communities.”

Background

Video and photos from the debate.

In response to growing global competition and new geopolitical dynamics, the European Commission unveiled the Competitiveness Compass on 29 January, with the goal of enhancing Europe's competitiveness by leveraging its innate strengths. The Compass is designed as a practical, actionable framework to guide the Commission's work over the next five years. It aims to position Europe as a leader in key sectors vital to tomorrow's economy while also reaching the goal of becoming the first continent to achieve climate neutrality.

Contact

Theresa Sostmann

Tel: +32475999415

Theresa.Sostmann@cor.europa.eu