In the current legislative period, the Green Deal as a strategic guideline of the EU Commission has largely been replaced by the goal of increased competitiveness. This year's Benchmarking Working Europe report by ETUI and ETUC also explores this terrain, but strives for a progressive interpretation of competitiveness. According to the report, it is less about reducing costs and more about a multidimensional approach that combines economic performance, social justice, environmental responsibility and democratic participation. The core of sustainable competitiveness: quality jobs.

In his welcome address, ETUI Research Director Bart Vanhercke made it clear that, in light of the geopolitical, technological and social conditions, it is necessary to take various aspects into account. These range from appropriate industrial policy strategies and green jobs to a thorough examination of psychosocial risks in the workplace. Judith Vorbach, Head of AK EUROPA, added that only sustainable competitiveness can be the basis for future economic success and social progress. A European model based on price competitiveness and the dismantling of labour rights, wage pressure, the weakening of environmental standards, cuts in social and environmental spending and a neglect of public investment is by no means sustainable.

Outline of the problem: contradictory strategy

Sotiria Theodoropoulou (ETUI) outlined the key contradictions in the current EU strategy, as highlighted in the report. Using current data, she showed that although the EU's industrial policy now provides for greater intervention, this is neither sufficiently coordinated at national level nor accompanied by social safeguards. Investment is concentrated in a few countries and sectors, while national investment scope is severely restricted by fiscal rules. The contradiction between increased industrial policy control and simultaneous austerity policies not only hinders the expansion of future-proof sectors, but also exacerbates existing imbalances. Competitiveness must therefore be redefined – not as a cost race, but as social and ecological resilience.

Structural problems beyond the employment rate

Agnieszka Piasna (ETUI) continued the presentation of the report with selected insights into the quality of employment in the EU. The high employment rate in the EU masks structural problems, such as the growing gap between men and women in terms of working hours and income. All too often, the unemployment rate is used as the sole measure of success, while the quality of the jobs created is ignored. Countries with particularly high employment rates also have above-average working hours. The general decline in weekly working hours is almost entirely due to the increase in part-time work. She pointed to the psychosocial risks in the workplace. More than a quarter of employees in Europe report that health risk factors such as stress or anxiety are caused or exacerbated by their workplace. However, these risks are not systematically recorded, even though they are indicators of the quality of work. She also emphasised the importance of democratic structures in companies and called for stronger, binding measures to promote social dialogue at national and European level.

At the end of the presentation, the other authors of the study emphasised that the aim was not to fundamentally question competitiveness, but rather to further develop the concept. Only if politics and business are geared towards the well-being of people can the EU survive at the global level and at the same time deliver on the promise of a social Europe.

Panel discussion: social progress as a goal

Isabelle Schömann, Deputy General Secretary of the ETUC, opened the discussion by criticising the fact that competitiveness is often defined solely in terms of productivity at any cost – at the expense of labour rights and without taking workers' access to innovation into account. She warned against undermining existing labour law directives under the pretext of simplification and emphasised the importance of genuine social dialogue.

Mario Nava, Director-General of the EU Commission's DG Employment, Social Affairs and Inclusion, emphasised the importance of inclusive change. The green and digital transformation must be shaped with and for the people. Education in Europe remains largely a public good, which is a good basis for closing skills gaps. In addition to investment, a strong social framework is needed. In this regard, several initiatives are currently underway at EU level, including the directives on traineeships and European works councils. Nava spoke out in favour of legal labour migration and a stronger link between social and labour market policies.

Evelyn Regner, Member of the EU Parliament (S&D), made clear that promoting competitiveness must not lead to deregulation. Article 3 of the EU Treaty is committed to sustainability and a competitive social market economy. She warned that the current omnibus packages pose a risk to democracy and called for binding regulations. The European Social Fund (ESF) must be strengthened as a strategic instrument for social inclusion, especially in the face of challenges such as digitalisation and migration. She also warned of the dangers of a possible 28th regime, which could cause a downward spiral by providing companies with an alternative legal framework that undermines social rights, and referred to studies showing that companies are more successful when women are equally involved.

For Thérèse de Liedekerke, Deputy Director General of BusinessEurope, economic and social progress are mutually dependent. She warned against excessive regulation, particularly in the field of artificial intelligence, so as not to hinder innovation. Liedekerke called for called for a nuanced discussion about which regulations make sense. Negotiated solutions would often be preferable, with Denmark being a particularly good example of successful governance through social dialogue. She believes that Europe needs targeted, streamlined regulation to remain globally competitive. Otherwise, jobs of the future would primarily be created elsewhere.

In summary, the new Benchmarking Working Europe report and the discussion clearly emphasise that the long-term competitiveness of the EU can only be ensured on the basis of social justice, environmental responsibility and democratic participation.

Further information:
ETUI: Benchmarking Working Europe 2025
AK EUROPA: Sustainable economic policy and social security as the basis for the EU´s competitiveness
AK EUROPA: The EU's fight for competitiveness. An Interview with Andrew Watt, Director General of the European Trade Union Institute
AK EUROPA: Benchmarking Working Europe 2024. The ongoing quest for Social Europe
ETUC: Letter to President von der Leyen regarding growing concerns that the Competitiveness Compass will create a race to the bottom