Just before the publication of the European Commission’s much-hailed Competitiveness Compass, our corporate capture campaigner Kim Claes explains how it is steering Europe in the wrong direction.
The announcement of the new EU Competitiveness Compass has sparked widespread debate. Over 270 organisations, ranging from trade unions to environmental groups, have sent a clear message to the European Commission: economic competitiveness must not come at the expense of social and environmental safeguards. This call touches on the core values of the EU – the protection of people, nature, and democracy.
Deregulation: A dangerous path
The European Commission’s focus on “competitiveness through simplification” seems appealing at first glance: less administrative burden and faster decision-making. But what the Commission and its supporters call “unnecessary rules” are often the foundations of a fair and sustainable society. Think of regulations on food safety, workers’ rights, and environmental protection. Removing or relaxing these rules could lead to a race to the bottom, where the interests of large corporations outweigh those of citizens and the environment.
This ‘deregulation agenda’ is the result of persistent lobbying by energy-intensive and fossil fuel industries. Leveraging their privileged access to decision-makers in the Council and the Commission, they exert significant influence on the policy agenda. In February 2024, the chemical federation CEFIC, along with 70 other industrial leaders, presented the ‘Antwerp Declaration’ to Commission President Ursula von der Leyen and Belgian Prime Minister De Croo during a closed-door event in Antwerp. Many of the demands in this declaration, crafted by some of the most polluting industries that have long delayed green transition policies and kept the EU dependent on fossil fuels, have since been incorporated into EU policy agendas.
Lessons from the German car industry
The crisis in the German car industry illustrates the consequences of short-term thinking and delayed transitions. These issues are not caused by excessive regulation but by a lack of innovation and postponement of the transition to electric vehicles. While German manufacturers continue to lobby for the combustion engine, other regions have invested in future-proof solutions. The result: German car makers are losing ground. Rolling back regulations would not only discourage innovation but also reward companies that have delayed necessary transitions – a disastrous recipe for sustainability and the economy.
The costs of deregulation
Tragedies like the floods in Valencia highlight the price of weak enforcement and dismantled protection systems. Regulations, however unpopular, often save lives. Deregulation creates uncertainty, inequality, and undermines trust in public institutions.
Robust regulation and enforcement are crucial for social and economic stability. The European Commission itself estimated that full implementation of EU environmental legislation could save approximately €55 billion annually in health and environmental costs. This proves that strong regulations and a healthy economy go hand in hand.
A call for responsibility
The European Commission has a responsibility toward its citizens. It must resist pressure from lobbyists who prioritize profit over the common good. Policymakers must focus on the challenges of our time: climate change, social inequality, and biodiversity loss. Privileged access for corporate lobbyists undermines democracy and harms citizens’ interests.
Regulations and standards are more than administrative burdens; they reflect our values. They promote transparency, fairness, and a level playing field. The Commission must not only uphold existing protections but strengthen them where necessary.
A call to action
Civil society has clear demands to Ursula von der Leyen: no rollback of social, environmental, and human rights standards; clear guarantees that simplification will not lead to deregulation; and prioritisation of a fair and green transition. The German car industry shows that clinging to outdated practices is counter-productive. Europe cannot afford to make the same mistakes.
It is time to readjust the Competitiveness Compass. In its current version, it would only steer Europe in the wrong direction.
