European Commission President Ursula von der Leyen said that energy costs must be reduced, companies’ administrative burdens eased, and industrial investments supported in order to strengthen Europe’s competitiveness.
Von der Leyen noted that energy prices in Europe are two to three times higher than in the United States and China, and said that the EU would once again place industry at the center of its policies.
Speaking at the annual conference organized by the Movement of the Enterprises of France (MEDEF) in Paris, von der Leyen said that the conditions that had supported Europe’s economic model for many years including cheap imported energy, open global trade, increasing access to the Chinese market, strategic protection provided by the United States and the West’s technological superiority had now disappeared.
She said European companies are simultaneously facing high energy prices, fragmentation within the Single Market, complex regulations and unfair competition, stressing the need to create more favorable conditions for companies to invest.
Administrative Burden on Companies to Be Cut by 25%
Von der Leyen said industry would once again be given greater prominence in EU policies, stating: “Our goal is to make Europe a continent that produces, invests and ensures its own security.”
She announced that the EU aims to reduce the administrative burden on companies by 25% by 2029, adding that the 12 simplification packages being prepared are expected to save companies approximately €17 billion annually.
She said the entire body of EU legislation would be reviewed, with duplicate regulations and reporting requirements reduced and permitting procedures accelerated.
Trade Deficit with China Reaches EUR1 Billion per Day
Von der Leyen stressed the importance of ensuring fair conditions in international trade to protect the competitiveness of European industry. Describing China as an important economic partner for the EU, she said the bloc’s approach was to “de-risk without decoupling.”
She said some Chinese companies receive up to eight times more government support than comparable companies in OECD countries. Imports from China have increased by 45% over the past five years, while EU exports to China have declined.
Von der Leyen said the EU’s trade deficit with China has reached approximately EUR1 billion per day and that the deficit increased by a further 10% at the beginning of this year. She added that, for the first time, all EU member states are running trade deficits with China.
She noted that the EU’s dependence on China exceeds 80% for many critical raw materials and 90% for some rare earth elements. While dialogue with China will continue, she said the EU must be prepared to use its trade defence instruments if sufficient progress cannot be achieved.
European Energy Prices Are 2–3 Times Higher Than in the US and China
Von der Leyen identified energy costs as one of the key factors limiting Europe’s competitiveness, noting that energy prices in Europe are two to three times higher than those in the United States and China.
She said more than half of the energy consumed in Europe still comes from imported fossil fuels, adding that dependence on imported fossil fuels has cost Europe more than €50 billion in additional expenses since the beginning of the crisis in the Middle East.
For this reason, von der Leyen emphasized the need for Europe to increase its own low-carbon energy production. She noted that more than 70% of the electricity generated in the EU comes from low-carbon sources, including renewables and nuclear power, but electricity accounts for only around one-quarter of final energy consumption.
EUR10 Trillion in Savings to Be Redirected Towards Investment
Von der Leyen said that Europe lacks sufficient financing capacity to support the growth of European companies and stated that efforts would be made to channel approximately EUR10 trillion in household savings held in European bank accounts into investment.
She noted that the Single Market remains incomplete in areas such as services, energy, telecommunications, finance and the digital economy, adding that this can have an effect similar to customs duties within the EU.
Describing artificial intelligence as one of the most powerful tools for improving productivity, von der Leyen said the EU has allocated EUR20 billion to establish large-scale AI infrastructure.
