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Von der Leyen Calls for Competition Policy to Boost EU Companies’ Growth

By  |  July 19, 2024

European Commission President Ursula von der Leyen has laid out a comprehensive vision to strengthen the European Union’s defence and economic policies, as she seeks approval from the European Parliament for a second term, reported Reuters. Speaking on Thursday, von der Leyen highlighted key initiatives aimed at bolstering the EU’s strategic autonomy and competitiveness on the global stage.

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    Defence Integration and Coordination

    According to Reuters, at the forefront of her proposals is the creation of a “true European Defence Union.” This ambitious plan includes establishing a single market for defence products and services and proposing Defence Projects of Common European Interest, starting with a European Air Shield and cyber defence. To ensure coordinated efforts, von der Leyen plans to appoint a Commissioner for Defence, tasked with strengthening Europe’s defence industrial base. Additionally, she committed to presenting a White Paper on the Future of European Defence within the first 100 days of the next Commission’s term. Furthermore, the European police agency Europol will see its staff more than doubled to enhance its operational capabilities.

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    Economic Policy and Investment Initiatives

    On the economic front, von der Leyen announced plans to create a European Savings and Investments Union. This initiative aims to consolidate banking and capital markets to leverage private savings for investment in innovation and the transition to clean and digital technologies.

    According to Reuters, a European Competitiveness Fund will also be established as part of the EU’s next long-term budget, starting in 2028. While the size and financing method of the fund remain unspecified, it is intended to invest in strategic technologies such as Artificial Intelligence, space, clean tech, and biotechnology, and support European projects of common interest.

    Competition and Technological Regulations

    A significant aspect of von der Leyen’s agenda is a call for a new approach to competition policy. Acknowledging the need for EU companies to scale up in global markets, she emphasized that innovation and resilience should be key considerations in assessing mergers. This shift aims to create a more favorable environment for European companies to compete globally, balancing the need for robust competition with the benefits of scale and innovation.

    Von der Leyen’s proposals underscore a commitment to reinforcing the EU’s strategic capabilities and economic resilience, positioning Europe as a formidable player in both defence and technological innovation.

    Source: Reuters