EU's Competitive Edge: Simplifying Red Tape and Embracing Innovation

The European Union is focusing on AI, biotech, and clean energy to enhance global competitiveness, as revealed in a draft European Commission paper. The paper aims to simplify business regulations, counter US and China competition, and proposes strategies for innovation and productivity growth over two years.

The European Union is gearing up to enhance its global competitiveness by focusing on artificial intelligence, biotechnology, and affordable clean energy, according to a draft paper by the European Commission. The bloc is under pressure to simplify business regulations amid competition from the United States and China.

President Trump has added to the EU's regulatory pressure by threatening new tariffs on exports and calling for reduced regulation at the recent Davos meeting. In response, the European Commission is preparing a Competitiveness Compass with 29 proposed measures to boost productivity and innovation over the next two years.

The paper emphasizes the urgency of adopting these strategies to secure Europe's future as an economic leader. France is also advocating for less red tape, pushing for delays in new rules to ensure EU companies remain competitive against their US counterparts.

(With inputs from agencies.)