EU competitiveness and global growth

Briefing 10-09-2020

With rising tensions surrounding the multilateral and liberal trading order in recent years, and declining public support for globalisation, the coronavirus pandemic has hit the world economy hard. In the short term, the efforts of the European Union (EU) and its Member States, as well as many other jurisdictions, are focused on supporting a sustained and inclusive economic recovery and on protecting businesses, jobs and livelihoods. At the same time, policy-makers in Europe should seek to address medium- to long-term challenges to minimise long-term scarring and restore eroding competitiveness. Decisive action is needed to secure EU global leadership of environmental and digital transformation. This will include investing in research and innovation, implementing structural reforms, and completing the (digital) single market, while screening foreign investments more efficiently and leading more efficient global coordination. The EU must equip itself with the right toolbox to ensure efficiency and the ability to shape global long-term trends, and prevent or at least mitigate structural risks and threats.