In recent years, the EU has been overshadowed by crises whose causes lie both within and, to a significant extent, outside the Union. Geopolitical tensions and wars, climate change and natural disasters, serious trade disputes, dwindling raw materials and increasing dependencies on third countries pose considerable challenges for the EU's economic development. The EU Commission is therefore currently placing the Union's competitiveness at the heart of EU policy. Already before the EU elections, EU Commission President Ursula von der Leyen had tasked Mario Draghi to outline a vision for the future of Europe along these lines. In September, he presented his report on securing the EU’s competitiveness, which now forms the basis for the EU policy debate. Competitiveness was also the focus of the Budapest Declaration adopted by the heads of government in November 2024; it shaped the Commission's work programme, which also announced the Communication ‘A Competitiveness Compass for the EU’ published in January 2025.

Chamber of Labour calls for ‘high road strategy’
AK has commented extensively on this Communication in its Position Paper, thereby highlighting the perspective of employees on this issue. While AK also recognises that the EU economy is under pressure, it emphasises that an economic policy geared towards sustainability is key to promoting EU competitiveness. Instead of price competitiveness linked to even more pressure on wages and labour law protection standards, the long-term strength of economies is based on a high-road strategy characterised by high productivity, innovative strength, modern and climate-friendly public infrastructure, legal and planning certainty for employees and companies, comprehensive public services and high educational standards. Trust in robust welfare states, good jobs and high real incomes, an intact environment and a functioning social partnership are not only the basis for the well-being of people in Europe and social peace, but also for robust and stable economic development.

Putting people first: support rather than pressure on social standards
The EU Commission rightly regards people as the foundation of Europe's competitiveness. With this in mind, AK calls for targeted support for workers at several levels. The EU's Just Transition Fund should be significantly increased and the European Social Fund strengthened, to foster skills development, encourage innovation and implement policies that ensure fair working conditions and job security, thereby reducing precarious working conditions. The European Pillar of Social Rights also plays a key role and must be implemented consistently and further developed as part of the action plan announced for the fourth quarter of 2025. Employee and consumer protection standards must be secured and further expanded. They must not be sacrificed to a deregulation agenda under any circumstances. AK firmly rejects counterproductive measures such as the Sustainability Omnibus and the introduction of a 28th regime  (in addition to or instead of the 27 national legal systems). AK also does not support the planned Competitiveness Coordination Tool in combination with a separate fund. This would duplicate existing structures and threaten to shift the focus of EU policy away from issues that are important to workers.

Strategic industrial policy and future investments and their fair financing
AK advocates for an active and strategic industrial policy through the appropriate targeting of public procurement, state subsidies and targeted public investment. This includes technological clarity and strategic conditionalities relating to the creation of European added value. Social partners, and in particular the employee side, should be actively involved. EU-wide coordinated investment in key areas should, among other, also serve to increase security of supply. AK also supports the investment offensive proposed in Mario Draghi's report, with an annual volume of up to 800 billion Euro. However, the Commission’s Communication does not provide any details on the scope of the planned measures.

It is also unclear how the plans are to be financed. AK is sceptical about a separate competitiveness fund, which threatens to come at the expense of other important objectives with European added value. The defence fund, which is currently under discussion, and further plans to increase defence spending must not come at the expense of social, employment and socio-political objectives. Plans to promote private investment by creating a Savings and Investments Union, which is ultimately based on deepening the capital markets and the Banking Union, must not jeopardise financial stability. Inflated securitization must be avoided, as must the enhanced privatisation of pension systems.

Next steps: energy, digitalisation and standardisation
A faster expansion of renewable energies and electricity grids is essential. Regarding the digital transformation, more consideration must be given to the concerns of workers. Promoting digital skills and expanding AI infrastructure is crucial. In view of the increasing energy demand of digital infrastructure, it is essential to link this to energy and climate policy. AK recognises the importance of standardisation in international trade; however, national and EU protection laws must not be undermined in any way.

Outlook
The Competitiveness Compass provides a programmatic overview of the measures planned to increase EU competitiveness. However, the Compass has significant gaps. It should not lead down a path that jeopardises existing standards of protection for workers, consumers and society. Especially in view of the multiple crises that the EU has been facing for some time now, the focus must be on the human factor.

Further information:
EU Commission: An EU Compass to regain competitiveness and secure sustainable prosperity
EU Commission: Factsheet – Competitiveness Compass
AK EUROPA: The EU Commission's work programme for 2025. Where are the workers?
AK EUROPA: The EU's fight for competitiveness. An Interview with Andrew Watt, Director General of the European Trade Union Institute