BRIEFING PAPER - BUILDING A NEW EUROPEAN COMPETITIVENESS DEAL SIX TESTS FOR A PROSPEROUS,

Foreign Policy Test: Is the deal internationally resilient and grounded in fair global rules? B U I L D I N G A N E W E U R O P E A N C O M P E T I T I V E N E S S D E A L 2 S I X T E S T S F O R A P R O S P E R O U S , R E S I L I E N T , F A I R A N D G R E E N E C O N O M Y Towards a New European Competitiveness Deal The EU is facing new challenges to its competitiveness With elections looming. [...] European Unity Test Does the deal make a step change towards a genuinely integrated European approach to reap the benefits of Europe’s diverse and unique strengths and assets? Currently, the EU policy framework does not make full use of its diverse and unique regional strengths and assets for the development of competitive value chains. [...] Since the relaxation of state aid rules in 2022, France and Germany have been responsible for 77% of approved programmes.37 Second, the lack of a unified and coordinated approach risks squandering a key strategic opportunity for Europe to use the economic potential of all its regions and foster the competitive sustainability of the economy.38 Instead of focussing on its objective strengths for bui. [...] For example, the European Commission estimates the additional investment needs at €620 billion per year to meet the objectives of the European Green Deal and REPowerEU.44 Boosting EU manufacturing and recycling capacity for CRMs and clean technologies is expected to require cumulative investments of €72 billion to €152 billion by 2030.45 However, the EU is nowhere close to raising the necessary fi. [...] 54 Institute Rousseau, 2024, Road to Net Zero: Bridging the green investment gap 55 E3G, Shareaction and WWF, 2024, Investing in Europe’s Prosperity B U I L D I N G A N E W E U R O P E A N C O M P E T I T I V E N E S S D E A L 1 3 S I X T E S T S F O R A P R O S P E R O U S , R E S I L I E N T , F A I R A N D G R E E N E C O N O M Y ..