The 26 European Commissioner candidates – nominated by the EU Member States – will be questioned during hearings by the European Parliament. Confederation of Swedish Enterprise identifies three essential areas – and how we think they should be addressed.
The 26 European Commissioner candidates - nominated by the EU Member States - will be questioned during hearings by the European Parliament. The purpose is to evaluate their suitability for their potential new role and the political direction they intend to pursue. The Confederation of Swedish Enterprise identifies three essential areas that we think should be addressed during the hearings –and throughout the next mandate.
Economic Strength = Security
Geopolitical threats demand increased security through reinforced military power as well as economic measures to reduce unsustainable dependencies on other countries. A strong and resilient economy is, however, crucial for security. The EU must improve its production capacity and foster innovation. It is only when companies are allowed to trade globally that they can grow. In turn, it is such growth that will ensure that we in the EU have the economic strength required to make massive investments required in areas such as defence, cybersecurity, and the green transition. Isolation does not provide security, and the risks of trade can be mitigated through diversification, partnership agreements and a rules-based global order. Therefore, a critical question is how the new European Commission plans to place European growth and productivity at the centre of the EU’s agenda for economic security.
State Aid That Distorts Competition
There are certain elements in the Commissioners’ mandates that point to an increased use of State Aid to address global competition. Targeted support - which is not aimed at solving a market failure - often tend to benefit large companies with greater resources to influence political decisions and secure government funding. State Aid distorts competition and can also discourage innovative startups. The important question is whether politicians and administrators are genuinely better suited than the market to decide which business investments should be funded? Would it not be better to direct taxpayers’ money towards broad, growth-stimulating measures that will benefit the entire business ecosystem?
Simplify Regulation to Stay Competitive
EU regulations often set out to ensure harmonised and fair conditions within the Single Market, for example through consumer protection or environmental considerations. When such regulations are drafted, they are meant to balance various national interests. However, this can often result in overlapping, contradictory, and overly detailed regulations that are costly for businesses to implement. Regulations are also often implemented differently in Member States, which creates fragmentation within the EU’s internal market and hinders free movement. The EU’s competitiveness depends on businesses staying at the forefront of the green and digital transitions. Therefore, the vital challenge for the EU’s future economic development is clear: to simplify and streamline regulations in order to make it possible for both small and large companies within the EU to develop, scale up and make use of new technologies.