Competitiveness Compass

Research, Technology & Industrial Capacity

Europe’s competitiveness in the green and digital transitions will depend on its ability to develop, produce and deploy next-generation materials at scale. To achieve this, the Commission will propose an Advanced Materials Act establishing clear framework conditions for the entire value chain; from fundamental research and prototyping to manufacturing and market uptake. The Act will focus on accelerating industrialisation, de-risking private investment and securing resilient supply chains for materials critical to clean technologies, energy, defence and space. By providing a coherent strategic framework, it aims to reduce dependencies, boost technological sovereignty and position Europe as a global leader in advanced materials innovation.

Research, Technology & Industrial Capacity

The law will establish a single, harmonised regulatory framework for the safety, resilience, and environmental sustainability of space activities across the Union. It aims to overcome the fragmentation caused by 13 divergent national space laws across Europe, ensuring a predictable internal market for space services and space-based data. The Act introduces uniform authorisation and registration rules, tailored cybersecurity and debris-mitigation obligations, and a common environmental footprint methodology. By providing legal certainty and reducing regulatory complexity, it will strengthen the competitiveness of EU space operators, foster innovation in the New Space sector, and position Europe as a global standard-setter in space governance.

Research, Technology & Industrial Capacity

As a cornerstone of the EU’s Life Sciences Strategy, the law will make Europe the most attractive place for biotech by 2030 by speeding approvals and risk assessments without compromising safety, unlocking risk-tolerant finance and biomanufacturing scale, building EU-wide clusters/infrastructure, closing skills gaps, and enabling trusted AI/data use (incl. supercomputing and EHDS links). It tackles single-market fragmentation across health, agri-food, industrial and marine biotech, strengthening competitiveness and economic security. Expected impacts of the law includes faster time-to-market, deeper investment pipelines, resilient supply chains and environmental benefits, supported by strong EU governance.

Research, Technology & Industrial Capacity

It will create horizontal, Single-Market-wide conditions to accelerate deployment and diffusion of innovation. The law will (i) simplify and make rules more innovation-friendly (incl. regulatory sandboxes), (ii) unlock IP-backed finance and improve access to EU/national funding, (iii) open research & technology infrastructures to companies, (iv) make public/private procurement more supportive of novel solutions, (v) improve commercialisation of publicly funded R&I (i.e. IP, standardisation, certification), (vi) enable talent attraction/retention (e.g. employee ownership schemes), and (vii) establish EU–Member State coordination of innovation policy, helping to close the EU’s innovation gap.

Research, Technology & Industrial Capacity

The Act Act will realise a “fifth freedom” by enabling the free movement of researchers, knowledge and technology across a single EU R&I market, anchored in TFEU Articles 179 and 182(5). It will (1) secure national commitments and new mechanisms to reach the 3% of GDP R&D target; (2) align EU–national investments and priorities around strategic technologies; and (3) upgrade framework conditions—attractive careers and mobility, open science and data access, a stronger legal basis for research infrastructures, and better knowledge valorisation. The Act will safeguard fundamental values, bolster research security, and clarify cooperation with third countries.

Research, Technology & Industrial Capacity

The Act will make the Quantum Europe Strategy operational, fixing fragmentation by aligning EU and national programmes around a shared RTI agenda and targets. It sets EU-level governance and extends the Chips Joint Undertaking’s remit to quantum technologies, coordinating investments across EU programmes. It anchors a three-stage pipeline—Discover; Lab-to-fab via pilot lines, design tools and standards; Apply & use in lead sectors, while scaling pan-European infrastructures in quantum computing, secure communication (EuroQCI) and sensing. The Act backs skills and industrialisation, strengthens supply chains. It also drives standardisation and interoperability and fosters talent attraction.

Infrastructure & Strategic Resources

This law will close Europe’s compute gap by tripling data-centre capacity within 5–7 years and meeting economy-wide needs by 2035, underpinning AI development and sovereign cloud services. It will harmonise cloud policy, set minimum criteria (including for a narrow set of highly critical use cases run on highly secure EU-based cloud), and streamline permitting, site designation and access to energy/water, ensuring geographically balanced rollout. The Act will spur R&I in resource-efficient data centres, enable targeted support consistent with State-aid rules, and complement AI Factories/Gigafactories and the Chips Act ecosystem.

Infrastructure & Strategic Resources

This law will build a true Single Market for connectivity by harmonising authorisations and spectrum policy, enabling cross-border services and a coordinated path to 6G. It modernises the telecom rulebook to spur investment in fibre, 5G and cloud/edge networks, integrates satellite services, and tackles market fragmentation that keeps Europe split into various national markets. It will streamline permits, clarify open-internet rules for innovative services, support copper switch-off and cloud-based network transformation, and target up to a 50% reduction in reporting burdens. A stronger EU governance model will replace patchwork oversight, boosting resilience, security and scale for operators and users.

Infrastructure & Strategic Resources

This plan will accelerate cost-effective, system-friendly electrification to lower energy costs, boost competitiveness and cut emissions. It tackles supply and demand across industry, transport and buildings, and will run in parallel with a Heating & Cooling Strategy. Delivery focuses on reliability and flexibility, expanding and digitalising grids, scaling storage and demand response, deepening cross-border integration, and encouraging new demand near clean generation. Policy levers will improve the electricity-to-fossil price ratio (i.e. energy taxation, network tariffs, removing non-energy charges) while mobilising financing, manufacturing capacity and skills along the value chain. Progress will be tracked using KPIs, including raising electricity’s share of final energy toward 32–33% by 2030.

Infrastructure & Strategic Resources

This Act will accelerate industrial decarbonisation by clearing permitting bottlenecks, strengthening clean-product demand and de-risking investment. It streamlines access to energy and infrastructure (i.e. building on NZIA, TEN-E and the emergency permitting toolbox) through acceleration areas, one-stop shops and, where allowed, tacit approvals, while maintaining environmental safeguards. It introduces resilience and sustainability criteria (clean, circular, cybersecure) across EU/national programmes and procurement, and pilots a simple carbon-intensity label—starting with steel in 2025, followed by cement—to unlock targeted incentives and enable international alignment. Coupled with the Clean Industrial Deal and related affordability measures, it aims to lower costs, shorten lead times and scale EU clean manufacturing, with a legislative proposal.

Infrastructure & Strategic Resources

The EU will establish the Platform to aggregate industrial demand, coordinate tenders, and secure diversified supplies for strategic value chains. Building on AggregateEU and complementing the Critical Raw Materials Act, the platform will align procurement across sectors, lower transaction costs for SMEs, and leverage EU and national de-risking tools. A dedicated EU Critical Raw Materials Centre will provide the purchasing backbone, organising joint buying for interested firms with Member States, coordinating strategic stockpiles, monitoring supply chains, and designing financial products for upstream projects in the EU and partner countries.

AI & Data Capabilities and Deployment

The strategy will establish a simpler, coherent EU framework for secure, large-scale data sharing between businesses and public administrations to power AI. It will align and streamline existing rules and practices, strengthen cross-border interoperability, and embed robust safeguards for confidentiality, integrity, security and IP. Concretely, it will: promote common technical and semantic standards (e.g. schemas, metadata, APIs); enable trusted data intermediaries and data-pooling mechanisms; expand access via privacy-preserving methods (e.g. anonymisation, synthetic data, secure processing); and clarify fair, transparent licensing for B2B and public-private data use. Closely linked to AI Factories, new Data Labs will federate sectoral datasets and connect to Common European Data Spaces to unlock high-quality training data at scale.

Competitiveness, Innovation & Strategic Investment

The EU’s investment engine for 2028–2034 will consolidate 14 programmes under a single rulebook and access point to back projects from research to scale-up, deployment and manufacturing. It will operate through four policy windows—clean transition, digital leadership, health/biotech/bioeconomy, and resilience/security/defence/space—and mobilise the full EU financial toolbox, including an ECF InvestEU instrument, alongside project advisory and SME services. The Fund’s indicative envelope is €234.3 billion, with Horizon Europe tightly connected for a seamless journey from idea to market. Overall, the ECF de-risks private capital, cuts fragmentation, and accelerates high-impact investments with EU value added.

Competitiveness, Innovation & Strategic Investment

New IPCEIs will reinforce Europe’s strategic capabilities in AI and computing through two coordinated projects: one advancing beyond-state-of-the-art research and first industrial deployment of federated, distributed AI services; the other building large-scale computing infrastructure and services. These initiatives complement national efforts, use public-private partnerships, and fast-track innovation and deployment across the digital stack. To speed delivery, the Commission will establish a support hub to accelerate design and launch, and work with the EIB to create a one-stop shop for grant preparation and financial structuring. The approach will also back IPCEIs in circular advanced materials for clean technologies and strengthen decarbonisation.

Competitiveness, Innovation & Strategic Investment

The Commission, together with the EIB Group and private investors, will deploy TechEU to close Europe’s late-stage financing gap for disruptive innovators, using debt, equity and quasi-equity delivered directly and via financial intermediaries. It targets scale-ups in AI, clean tech, critical raw materials, energy storage, quantum, semiconductors, life sciences and neurotechnology, complementing InvestEU and the Clean Industrial Deal. TechEU will also support exit pathways and late-growth rounds, and anchor a deeper pan-European market through ETCI 2.0 to crowd-in institutional capital. The programme aims to build industrial capacity, de-risk strategic projects and mobilise significant private investment at scale.

Human Capital, Skills & Talent Mobility

The plan will deliver EU-level support to help national, regional and local authorities provide affordable, sustainable homes, while respecting subsidiarity. It addresses supply–demand imbalances, high building costs, permitting bottlenecks and skills shortages that drive up prices. Measures will mobilise investment (including an EIB platform), allow more cohesion funding for housing, adapt State-aid rules, and link renovations to the Social Climate Fund. The plan will accelerate permitting and procurement, improve rental-market functioning, and provide technical assistance so projects can scale quickly and fairly across regions and cities.

Human Capital, Skills & Talent Mobility

Developed with EU social partners in 2025, the Quality Jobs Roadmap will set a coherent EU strategy to raise job quality alongside competitiveness. It will back fair wages, high health-and-safety standards, decent working conditions, work-life balance, gender equality and wider collective bargaining; strengthen enforcement of work-related rights; and support access to training and fair job-to-job transitions, drawing on the European Pillar of Social Rights. It will align with the Competitiveness Compass, Union of Skills and the Clean Industrial Deal so decarbonisation creates attractive jobs and regional cohesion, and may announce targeted legislative and non-legislative actions with robust monitoring and evaluation.

Human Capital, Skills & Talent Mobility

The initiative will remove barriers to cross-border work by making skills and qualifications usable across the Single Market. It will consider a legislative proposal to ease mobility and promote common EU formats for interoperable digital credentials, building on EQF, Europass and ESCO. Recognition in regulated professions will be expanded and modernised using digital tools, while simpler common rules will be explored to recognise third-country nationals’ skills. In parallel, the EU will develop a framework for automatic recognition of qualifications and learning periods in school, VET and higher education, and examine accession to the Lisbon Recognition Convention.

Single Market Deepening & Harmonisation

It will create an optional, EU-wide corporate framework—digital by default—to let innovative firms set up, operate, and raise capital seamlessly across borders. The proposal may rely on TFEU Article 352 or a harmonised national form via Articles 50/114, with a progressive, modular design. It targets 48-hour incorporation and “once-only” data sharing via BRIS, EUID, and an EU Company Certificate, leveraging the European Business Wallet. Investment-friendly options under consideration include simpler capital increases, flexible share classes, and standard private-equity terms. Complementing the European Innovation Act, it cuts failure costs, fragmentation, and compliance burdens.

Single Market Deepening & Harmonisation

The Act will create a true Single Market for waste and secondary raw materials, boosting supply and demand for quality recyclates at competitive prices. It will harmonise end-of-waste criteria, simplify and expand extended producer responsibility (including a one-stop producer registry), and revise e-waste rules to recover critical materials, while aligning with the Ecodesign for Sustainable Products framework. Public procurement criteria, incentives for scrap use, and digitalised demolition permits will accelerate circular design and recycling. Strong enforcement—including for e-commerce channels—will ensure compliance.

Single Market Deepening & Harmonisation

It will provide a legally recognised digital identity for economic operators, enabling companies to share verified data and credentials across borders and receive notifications in a secure channel. Built on BRIS and the European Unique Identifier, and aligned with the EU Digital Identity Wallet rollout and the Once-Only Technical System, it replaces document-heavy compliance with interoperable, data-based exchanges. The Wallet is a cornerstone of the Single Market simplification agenda and the EU Startup & Scaleup Strategy, lowering costs for SMEs, easing licensing and reporting, and making cross-border operations seamless, turning digital-by-default rules into practice across the EU business lifecycle.

Single Market Deepening & Harmonisation

The Commission will modernise the Horizontal and Non-Horizontal Merger Guidelines to reflect dynamic, innovation-driven competition and Europe’s strategic needs. The review will better weigh innovation, resilience, investment intensity in strategic sectors; recognise supply-chain security and scale economies where relevant; and clarify treatment of ecosystem and data-driven effects. The update will codify recent case law and practice, streamline evidence standards, and provide faster procedures, including clearer safe harbours and remedies guidance. While preserving a level playing field, the revised approach will align merger control with the competitiveness agenda, closing the innovation gap, enabling efficient European scale, and supporting decarbonisation.

Single Market Deepening & Harmonisation

The Commission will overhaul the EU procurement framework to make public spending a strategic lever for competitiveness, security and innovation. The revision will enable sustainability, resilience and European-preference criteria in strategic sectors, while staying consistent with EU and international commitments. It will simplify and digitise procedures, embed once-only data reuse, curb overspecification, and promote innovation-friendly tools (e.g. outcome-based/R&D purchases, clearer IP clauses). Rules will be consolidated across legislation to ease use by all administrations and open tenders to startups and SMEs. Defence and security procurement will be modernised and cross-border aggregation strengthened to create lead markets and scale.

Single Market Deepening & Harmonisation

The Commission will overhaul the Standardisation Regulation to make harmonised standards faster, more flexible and inclusive (bringing SMEs, startups, civil society and academia fully into the process) while improving access to standards and hard-wiring closer links with research and innovation. It will mandate structured, machine-readable formats and provide training to cut compliance costs and make standards easier to use, reinforcing the EU’s role as a global standard-setter and supporting the effective functioning of EU product legislation at the heart of the Single Market. Implementation will prioritise AI, semiconductors, clean tech and advanced materials, with clearer governance and faster mandates so EU standards swiftly become interoperable market rules.

Single Market Deepening & Harmonisation

The Commission is revising the TTBER and accompanying Guidelines to modernise EU rules for IP licensing and speed the diffusion of innovation. The draft updates clarify market-share safe harbours (including a longer grace period), address data licensing, strengthen soft safe-harbours for technology pools, and introduce guidance for licensing negotiation groups, alongside updated case-law on settlements and no-challenge clauses. The aim is greater legal certainty for pro-competitive collaboration (especially in data- and AI-intensive sectors) while safeguarding competition.

Implementation, Simplification & Better Regulation

The Commission will fast-track simplification by empowering common technical specifications when harmonised standards lag, and by digitalising compliance so firms can demonstrate conformity faster and paper-free. The package also extends existing SME mitigating measures to small mid-caps and removes redundant paper requirements in product laws, easing conformity assessment and cutting reporting overlaps. Together with the Single Market Strategy, it targets quicker time-to-market, legal certainty and lower costs while maintaining high safety and consumer protection. Delivery will be tied to measurable burden-reduction targets and periodic scorecards so businesses see real, near-term gains in every Member State.