Competitiveness week: Ministers meet, businesses commit, and simplification stalls

It was a competitiveness-centred week: responsible ministers met on Monday, 28 September, leading European companies signalled they are ready to invest more in Europe, and the European Parliament failed to agree on the first of six simplifications “omnibus” packages proposed by the European Commission.

During the Council meeting

On Monday (29 September), ministers discussed the simplification packages with industry commissioner Stéphane Séjourné. Governments of the 27 member states agreed that administrative burdens needed to be reduced, and that the omnibus packages are a good place to start. However, they emphasised that new legislative proposals could still impose significant costs on businesses and that the right balance has yet to be found. In particular, the “better regulation” principles – including impact assessments, evaluations, and stakeholder consultations – should be applied more diligently.

Government representatives also debated the European Competitiveness Fund, the Commission’s proposed €409-billion portion of the 2028–2034 EU budget. The ECF would bundle existing expense lines, reduce bureaucracy and accelerate the payout of EU funds to applicants in important sectors from pharma to clean energy. While governments broadly back the fund, it is uncertain what will remain once negotiations wrap up in the summer of 2027. EUobserver reports a clear east–west divide on how to spend the funds, with western states favouring market-based competition while eastern states push for geographical balance in distribution. At the same time, there is the common north–south split on how much to spend, with northern countries advocating budget restraint and southern countries calling for more expansive public investments.

During the Copenhagen Competitiveness Summit

On Tuesday (30 September), leaders of 28 major European companies called on EU leaders “to execute ambitious reforms that foster innovation, investments, technological infrastructure, a clean and just transition, and security.” In return, they committed to invest around 50 per cent more in Europe by 2030. If other large enterprises follow, that could help close the €800 billion annual investment gap identified by Mario Draghi in his competitiveness report last year.

Concretely, the “Copenhagen Pledge” sets out five priorities from CEOs of companies such as Airbus, Siemens, and ASML. First, they call for the Commission’s regulatory burden reduction targets to be met as soon as possible, alongside broader efforts to lower barriers within the European market. Second, they urge incentives for private investment through the proposed European Competitiveness Fund under the new multiannual EU budget, coupled with increased public investment and the creation of a functioning Savings and Investment Union to allow capital to move freely across the EU. Third, they want to accelerate industrial greening and electrification under the Clean Industrial Deal, providing a foundation for affordable energy for industry. Fourth, they call for strengthening the EU’s defence industrial base and shortening delivery times by removing cross-border barriers and deepening cooperation. Finally, they stress the need to invest in and protect technological progress in areas such as AI, quantum computing, digital infrastructure, and connectivity.

During the European Parliament’s political negotiations

In Parliament, meanwhile, it became clear that even the pledge’s first step is contentious: on Tuesday, political groups failed to agree on a common position on the first simplification package. The package covers long-debated reductions in sustainable finance reporting (CSRD) and sustainability due diligence (CSDDD), as well as proposed changes to the EU green taxonomy, the carbon border adjustment mechanism, and European investment programmes. The Christian-democratic EPP, the liberal Renew, and the socialist S&D groups disagreed over how many companies should be exempted from bureaucratic reporting requirements, with the EPP pushing for broader exemptions than those initially proposed by the Commission.

It may set the tone for negotiations on the five other omnibus packages already on the table, with another five expected later this year under the Danish Council rotating presidency. Separately, a working group in the Commission’s internal market department adopted an outline on Tuesday for the next package, which will target bureaucracy relief for the automotive industry.

New Irish defence strategy enlists industry in national security

The Irish government has published the Department of Defence and Defence Forces Strategy Statement 2025–2028, outlining the direction of Ireland’s defence policy for the coming three years. The strategy, released on 24 September, emphasises the modernisation of capability and the development of new frameworks for national security. Notably, it identifies a greater role for Irish industry in supporting these objectives.

Engagement with Industry and SMEs

For the first time in a strategy statement, the Department of Defence has committed to building structured partnerships with Irish businesses, including small and medium-sized enterprises (SMEs). The document highlights the importance of engaging domestic suppliers in procurement, innovation, and capability development. This approach reflects wider European trends, with the European Defence Fund and other EU initiatives encouraging cross-border cooperation between defence authorities and industry. The Government has indicated that Ireland will align with these frameworks to ensure that Irish companies can participate in EU-level programmes and access funding opportunities.

Critical Entities Resilience

The strategy also confirms that a Critical Entities Resilience Strategy will be published by March 2026. This will define which sectors and operators are considered essential to Ireland’s national security. Industries expected to fall under this remit include energy, communications, water, pharmaceuticals, and transport. Inclusion on the critical entities list will bring with it regulatory and operational requirements, including strengthened risk management, contingency planning, and reporting obligations. The Department of Defence has signalled that this framework will be designed to align with the EU’s NIS2 Directive, which has already expanded cybersecurity obligations across Member States.

National Security Strategy

Another major development is the planned publication of Ireland’s first National Security Strategy by the end of 2025. This will provide an overarching framework for identifying and mitigating threats, ranging from cyberattacks and hybrid interference to energy security and supply chain vulnerabilities. For industry, the strategy will create a single reference point for engagement with Government on security issues. Businesses operating in sectors deemed strategic or high-risk are expected to play a greater role in resilience planning and in sharing information on potential threats.

Maritime and Subsea Infrastructure

The 2025–2028 strategy also sets a timeline for a National Maritime Security Strategy, to be completed before year-end. This will focus on the protection of Ireland’s extensive Exclusive Economic Zone and the resilience of subsea infrastructure, particularly transatlantic data cables. Ireland hosts a significant portion of Europe’s internet connectivity through cable landings, making their protection a matter of international concern. For companies in the telecommunications and technology sectors, the strategy signals a growing expectation of collaboration with the State on resilience measures.

Outlook for Business

The Defence Strategy Statement 2025–2028 underscores that national security is not solely a matter for the State, but also for the industries that underpin Ireland’s economy and critical infrastructure. With a capital investment of €1.7 billion planned between 2026 and 2030, and with new security frameworks set to be introduced over the next 18 months, Irish businesses can expect both new obligations and new opportunities in supporting the State’s evolving defence posture.

European Commission presents plan to boost citizens’ financial and investment skills

On Tuesday, 30 September, the European Commission unveiled its Financial Literacy Strategy, a major initiative to advance the Savings and Investments Union (SIU), providing EU citizens with the tools to take control of their financial future. This initiative focuses on enhancing financial literacy at every stage of life while introducing a new tool called Savings and Investment Accounts (SIAs). These accounts are designed to simplify and increase accessibility to investing for all individuals. The plan aims to empower citizens to manage their finances more effectively, build wealth, and contribute to economic growth in Europe.

A 2023 Eurobarometer survey found that less than one-fifth of EU citizens have a high level of financial literacy. This lack of knowledge can make it difficult for individuals to budget effectively, save for the future, and understand the risks and opportunities associated with investments. To address these gaps, the European Commission has introduced a strategy aimed at equipping citizens with the necessary knowledge and skills to make informed financial decisions, ultimately enhancing their financial security and independence.

Moreover, the Commission is also seeking to turn citizens’ savings into productive investments. EU citizens currently enjoy one of the highest savings rates globally, but much of their money remains in bank deposits, which typically offer low returns. By moving some of these savings into investments, citizens can not only build their personal wealth but also provide financing for businesses, driving economic growth and creating jobs, a core objective of the Savings and Investments Union.

To bridge this gap, the Commission is recommending a blueprint for Savings and Investment Accounts (SIAs). These accounts, offered by authorised financial services providers, are specifically designed to enable everyday people to invest in capital market instruments like shares, bonds, and investment funds.

To accomplish this goal, the SIA framework included in the strategy recommends that SIAs should be simple and flexible, allowing investors to open multiple accounts and transfer their portfolios easily. SIAs should also offer a wide variety of investment products, allowing citizens to diversify their portfolios. Finally, the Commission sees tax incentives as a crucial component for encouraging broad participation.

This new package represents a significant step towards creating a more financially literate and investment-savvy Europe. By enhancing citizens’ skills through the Financial Literacy Strategy and providing a simple, accessible tool like the Savings and Investment Account, the EU is empowering its citizens to achieve greater financial independence and security. The Commission will now work closely with Member States to implement the strategy and monitor the uptake of the SIA recommendation.

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Compliments of Vulcan Consulting – a Member of the EACCNY