A comprehensive vision for innovation, competitiveness and health in Europe

This summer has been key for a detailed analysis of the new programme presented by Ursula von der Leyen, designed to consolidate her re-election as president of the European Commission. As expected, the document highlights key areas such as competitiveness, defence and social issues. However, measures on innovation and health stand out in particular, with a clear influence from the Letta report, presented in April this year. This holistic approach aims not only for the EU to address current challenges, but also to position itself as a global leader in the years to come.

The highlights of this ambitious agenda are detailed below, along with a critical reflection on the aspects that seem to have been left out.

1. Establishment of the European Competitiveness Fund (2028-2033):

The programme includes the creation of a European Competitiveness Fund, which will be within the 2028-2033 budget. This fund represents an evolution of the failed sovereignty fund, with a more ambitious and strategic approach. The main objective is to ensure that Europe not only develops, but also manufactures strategic technologies on its territory. It aims to invest in technologies critical to Europe’s future, including artificial intelligence, space industry, clean technologies and biotechnology. This approach seeks not only to develop new technologies, but also to ensure that the manufacturing of these innovations remains within Europe’s borders, thus reinforcing the region’s technological autonomy.

This is crucial in a global context where competition for technological supremacy is increasingly intense, and Europe cannot afford to be left behind.

2. Reform and strengthening of the IPCEIs (Major Projects of Common Interest):

Another important measure is the reform and strengthening of the IPCEIs, supported by the European Competitiveness Fund. These projects will allow European countries to join forces and invest jointly in ambitious initiatives that will have a significant impact on the continent. So far, IPCEIs have proven their worth in areas such as batteries, hydrogen and microelectronics, and von der Leyen’s pledge is to make them more accessible and efficient. The commitment is to simplify and streamline both the funding and the start-up of these projects, with a new set of initiatives planned for early 2025. This will not only accelerate innovation in key sectors, but also foster cooperation between member states, strengthening the EU’s internal cohesion.

3. European Research Council on Artificial Intelligence:

The establishment of a European Council for Artificial Intelligence Research is another pillar of the programme. This council aims to unify European resources in this field by centralising efforts in artificial intelligence, adopting a collaborative approach similar to that of CERN. Artificial intelligence is one of the most disruptive technologies of our era, and Europe cannot afford to fall behind in its development and application.

The creation of AI Factories will also be part of this initiative, reinforcing the EU’s commitment to a technology considered crucial for the region’s competitive future. This measure reflects a long-term vision, where Europe not only adopts AI but also leads its development, ensuring that the economic and social benefits of this technology remain within the continent.

4. European Biotechnology Law (2025):

Scheduled for 2025, the new European Biotechnology Law aims to facilitate the transition of biotechnology from the laboratory to industrial production, integrating it into a European Life Sciences Strategy.

This legislative framework will be part of a broader European Life Sciences Strategy, which aspires to position Europe as a leader in a field that is fundamental for health and agriculture. Biotechnology is a sector with immense potential to transform entire industries, and this law seeks to ensure that Europe remains at the forefront of these innovations. Additionally, it will promote a regulatory environment that supports the creation and growth of new biotech companies within the European market.

5. Boosting Private Financing for Disruptive Innovation:

One of the most critical challenges for European startups and emerging companies is financing. Von der Leyen’s programme addresses this issue by proposing measures that facilitate risk absorption by banks, investors, and venture capital, thereby preventing these companies from having to seek funding in markets outside the continent. This approach is vital for retaining talent and innovations in Europe, strengthening the startup ecosystem and allowing these companies to expand and compete on a global scale. Disruptive innovation is essential for long-term economic growth, and this programme aims to ensure that Europe not only participates in this process but also leads it.

6. Review of the Public Procurement Directive:

The programme also includes a review of the European Public Procurement Directive, which will allow for the prioritisation of European products in strategic sectors. This will not only help ensure the value of the EU for its citizens but also strengthen the security of supply of essential technologies and products. The new public procurement rules will also be adapted to include European startups and innovators, facilitating their market access and promoting innovation within the continent. This measure reinforces the idea of a more self-sufficient Europe capable of competing on the global stage, without relying excessively on external actors.

7. Proposal for a European Union of Savings and Investments:

Following the recommendations of the Letta report, the programme proposes the creation of a European Union of Savings and Investments, integrating banking and capital markets. This initiative has the potential to significantly strengthen the continent’s economy by facilitating access to financing for innovative companies and projects. By creating a more integrated and accessible financial market, the EU could enhance capital mobilisation and foster more robust and sustainable economic growth. This measure is especially important at a time when the global economy faces significant challenges, and Europe needs to be prepared to respond effectively.

8. Law on Critical Medicines:

Lastly, the programme includes a Law on Critical Medicines, designed to reduce the EU’s dependence on essential medicines and ingredients. This law will ensure a stable and reliable supply for all European citizens, a crucial aspect highlighted by the recent pandemic. By strengthening internal production of critical medicines, Europe not only enhances its health security but also protects its citizens from future global crises.

Pending Aspects and Opportunities for Improvement in Europe

While Ursula von der Leyen’s programme is ambitious and covers key aspects for the future of Europe, there are several areas that should have been addressed in greater depth. Below are some reflections on the aspects that have not received sufficient attention:

Cohesion Policy

One of the topics that seems to have taken a back seat is cohesion policy. It is understood that, with the emphasis on neighbourhood and enlargement, this area may have lost prominence. However, cohesion remains essential to ensure that all regions of Europe benefit from growth and innovation. This approach could generate a sense of neglect among smaller or less developed member states, which view cohesion as a vital pillar for reducing internal inequalities within the EU. A more balanced approach that considers both the integration of new members and internal cohesion could further strengthen the unity of the continent and reduce economic and social disparities among its regions.

Bureaucratic Simplification

The programme also places considerable emphasis on bureaucratic simplification as a key element for promoting economic development. Although bureaucratic simplification is mentioned as a driver of economic growth, this approach may be somewhat overstated. It is true that reducing red tape can facilitate business growth, but an excessive focus on this aspect may lend weight to Eurosceptic narratives that criticise the EU for being overly regulatory. Rather than concentrating solely on bureaucracy, more emphasis could have been placed on creating a regulatory environment that fosters innovation without sacrificing the quality and safety standards that are essential for the well-being of European citizens.

Democracy and Values

It is pleasantly surprising to see an emphasis on democracy and values beyond mere rhetorical statements. It serves as an important reminder that, at its core, the European Union is not just an economic project but also a political one based on shared values.

However, while the programme includes mentions of democracy and European values, a more concrete approach is needed regarding how these ideas will be implemented in a context where these fundamental principles are under threat in some member states. It would have been interesting to see how these principles are more directly integrated into innovation and competitiveness initiatives, ensuring that technological progress does not come at the expense of fundamental rights and the freedoms of citizens.