A competitive economy is essential for Europe’s prosperity, creating wealth, quality jobs, funding public services, and supporting our social model and independence.
Europe is a global leader in advanced manufacturing and clean technologies, home to world-class universities and research institutions, and the largest network of trade partnerships of any major economy. However, fragmented markets, high energy costs, skills shortages, and regulatory complexity limit Europe’s growth.
We are focused on addressing these issues through
- completing the single market
- strengthening strategic industries
- reducing energy costs with homegrown clean power
- aligning competitiveness with Europe’s social model
A stronger single market - for people and businesses
With its 450 million consumers, the single market is the engine of European growth and competitiveness. Removing the remaining internal barriers, and thereby completing the single market, is vital for Europe’s independence and our key priority.
Simplifying the rules
We are making the single market easier to navigate by cutting unnecessary red tape. We have put forward 12 simplification packages with a broad range of simplification measures across sectors, from automotive to chemicals.
We are working with the Parliament and Council to continue delivering on the simplification agenda, so companies have more resources to innovate, scale up, and create quality jobs.
The proposed simplification measures are expected to save European businesses at least €17 billion in net administrative costs.
Our objective is to reduce reporting obligations by at least 25% for all businesses and at least 35% for small and medium-sized enterprises.
The fastest path to stronger competitiveness and real European independence is to reduce fragmentation of the single market. We have
put forward most of the initiatives set out in the competitiveness compass and now focus on delivery
agreed a One Europe, One Market roadmap with the Parliament and the Council, aiming to move forward on key reforms by the end of 2027, with rapid progress already underway
EU Inc., a single European company framework
European entrepreneurs and innovative companies are the first victims of regulatory fragmentation. Instead of operating in one market, they face 27 legal systems and more than 60 company forms. We have put forward EU Inc., so our businesses can benefit from a true single market.
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EU Inc. - a new harmonised corporate legal regime
- Fast & cheap - Registration in 48 hours. Maximum cost of €100.
- Simple - Fully digital. Once-only submission of information. Central EU register for company information.
- Low risk - With simplified and digital insolvency for start-ups.
- Attractive for investors - Simple transfer of shares and access to the stock exchange.
- Attractive for employees - Easier access to employee stock options.
- Strong safeguards - No weakening of the rules that protect workers.
An innovative Union, leading the industries of the future
Europe is navigating a profound technological and industrial transformation. From AI and quantum technologies to clean tech and biotechnology, a global race is under way to shape the industries that will define future prosperity and power. Europe’s ability to act independently and remain competitive depends on ensuring these technologies are not only deployed in Europe, but also designed, developed, and manufactured here.
Europe has world-leading industrial and technology companies, cutting-edge research, a growing start-up scene, and a highly skilled workforce. We must
make better use of these assets to help companies start up, scale up, and become global champions
strengthen demand for European technologies and clean products to attract investment
Industrial accelerator act
In March 2026, we put forward the industrial accelerator act to
The act aims to increase the share of EU GDP represented by manufacturing from 14.3% in 2024 to 20% by 2035.
Stronger demand for clean and innovative European products provides companies with the certainty they need to invest and scale up within Europe.
Supporting traditional industries and helping them decarbonise
Industries such as energy, chemicals, and steel currently face growing pressure from high energy costs, increased global competition and market distortions driven by massive foreign subsidies.
To ensure that Europe remains a continent of innovation, but also a continent that builds and produces, we
Artificial intelligence (AI) and digital technology
Europe’s future success depends on technological leadership in digital technologies and AI, backed by a vibrant industry. The next wave of innovation will be defined by how digital capabilities are applied in the real world. To create value, technologies like AI must be connected to the physical systems they are meant to improve.
building the infrastructure needed to compete globally, with 19 AI factories already being rolled out, and the call for Europe’s first AI gigafactories was launched in July 2026 to expand the computing capacity required to train frontier AI models and support innovation at scale
reinforcing Europe’s sovereignty and competitiveness in the cloud and AI ecosystem through the proposed cloud and AI development act
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European tech sovereignty package
The tech sovereignty package will strengthen Europe's competitiveness, strategic autonomy and geoeconomic position.
What it means
- Boosting homegrown industrial capacity and autonomy across the supply chain.
- Increasing choice for end users.
- Securing the supply of digital technologies.
- Developing, controlling and scaling critical technologies, infrastructure, services and data.
- Setting the standards for key strategic technologies.
The package includes
- Chips act 2.0
- Cloud and AI development act
- EU open source strategy
- Strategic roadmap for digitalisation and AI in energy
Delivering energy independence
As Europe has faced a global energy shock for the second time this decade, the need for greater energy independence has never been clearer.
The escalating conflict in the Middle East and the closure of the Strait of Hormuz triggered sharp increases in global oil and gas prices, costing Europe almost €50 billion in additional energy costs and showing how geopolitical instability beyond our borders can rapidly translate into economic pressure on families and businesses at home.
In recent years, the EU has taken significant steps to accelerate the clean energy transition, reduce emissions, and reduce exposure to volatile energy markets. Those efforts meant Europe entered this crisis better prepared than before.
AccelerateEU
In April 2026, we presented AccelerateEU, a package of measures designed to
It combines short-term support for vulnerable citizens and energy-intensive industries with structural measures to reduce dependence on volatile fossil fuel markets.
The share of renewables in Europe’s electricity mix increased from 36 % in 2021 to 47 % in 2025. The rapid expansion of solar power alone is estimated to have saved around €110 million every day during the Strait of Hormuz crisis by preventing unnecessary gas imports.
We also need to accelerate electrification so that transport, heating, and industrial processes run on clean European electricity rather than imported fossil fuels. In July 2026, we set out an electrification action plan to make Europe the first electro-powered continent.
EU Emissions Trading System (ETS)
The energy transition also requires the right market incentives. That is why we have launched a review of the EU Emissions Trading System.
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EU ETS and greenhouse gas emissions
Since the introduction of ETS in 2005:
- greenhouse gas emissions have fallen 50% in covered sectors
- the system has generated more than €280 billion, reinvested in innovation, modernisation and industrial decarbonisation
The EU economy continues to grow
At the European level, these revenues are reinvested in clean innovation and industrial transformation.
Member states will be required to spend 50% of their national ETS revenues to decarbonise ETS sectors. This will help ensure revenues generated from European industry are reinvested to help European businesses build the clean industries of the future.
Agriculture
Europe’s farmers are essential for our prosperity and independence. They ensure a reliable supply of safe, high-quality food, support millions of jobs across the agri-food sector, and sustain the rural communities and landscapes that are part of Europe’s identity.
As farmers are facing growing pressures, from rising input costs and global competition to the increasing impact of climate change and geopolitical challenges, we are supporting them by
stepped up our support with a strategy for generational renewal in agriculture, aiming to double the number of young and new farmers by 2040
further simplified the common agricultural policy, reducing administrative burdens and making support easier to access
put forward our fertilisers action plan to ensure access to fertilisers at an affordable cost, reinforcing domestic production, increasing economic security and independence. We also mobilised €540 million (out of a potential €1.5 billion if topped up by Member States) to provide financial relief for farmers buying fertilisers.
adopted a livestock strategy to strengthen food security, support rural communities, and contribute to a more resilient agricultural system
developed a protein plan to increase the production and use of EU-grown protein
Empowering people and strengthening our social model
Competitiveness underpins our citizens’ wellbeing and sustains our social model. Our competitiveness drive builds on Europe’s unique social model and on our strong tradition of social dialogue between workers and employers. It also helps people develop the skills they need to thrive in a more competitive global economy.
However, amid geopolitical tension and technological upheaval, many Europeans worry about the future and the impact of AI as companies are restructuring and industries are facing intense global competition. With deep and rapid transformation underway, Europe must stay ahead while ensuring no one is left behind.
Union of skills
Skills are central to our competitiveness and to people’s sense of security. The union of skills aims to equip Europeans with the capabilities they need to succeed in a changing economy.
- more than10.00million peoplehave benefited from upskilling and reskilling initiatives since 2020
- 3.90million peoplebenefited from these initiatives in 2025 alone
With the Skills Guarantee, we will help workers from sectors undergoing profound transformation move into growing and strategic sectors that face labour shortages. This means
We are also ensuring Europe makes better use of its talented and hardworking population. Free movement is one of our Union’s greatest strengths, yet workers still face unnecessary obstacles when moving across borders, including
The upcoming fair labour mobility package aims to remove unnecessary obstacles and make it easier for people to bring their skills where they are needed most.
Quality jobs
Competitiveness also depends on quality jobs. They support productivity, attract talent, and build the skilled workforce Europe needs to compete globally. For this reason, the Commission has developed, together with social partners, the quality jobs roadmap to support fair wages, good working conditions, strong health and safety standards, and smoother transitions between jobs and sectors.
This page lists only a selection of accomplishments achieved during the past year.
For more, download the brochure (PDF).
This page was last updated on 11 September 2026