The compass pushes forward five horizontal framework conditions to support competitiveness in all sectors:

‍

1. Reduce regulatory and administrative burdens by at least 25% (35% for SMEs). The EU Omnibus explained above will simplify legislation around sustainability reporting, due diligence and taxonomy. In particular, the aim is to make doing business easier for the thousands of European SMEs.
2. Remove obstacles in the internal market. The European governance framework is being modernized by removing barriers between member states that hamper business competitiveness.
3. Encourage investments. A more efficient capital market should encourage savers to invest, while adjusting the EU budget to better support priorities such as climate neutrality and competitiveness.
4. Promote skills and quality jobs. To continue safeguarding human capital as a European asset, adult education, lifelong learning and fair mobility will receive extra attention, in addition to greater recognition of training and attraction of talent from abroad.
5. Improve policy coordination at the European and national levels. The implementation of EU policies will be better monitored, and a unified competitiveness fund will be created, bringing together existing financial instruments.

‍

In short, with the Competitiveness Compass, the EU links its goal of becoming climate-neutral by 2050 to its economic strategy more explicitly than ever.