With the right focus, the EU’s Competitiveness Fund can make a positive contribution

In July, the European Commission presented its proposal for a European Competitiveness Fund, and the debate about its content is now beginning. “A clear focus on competitiveness is positive – but, as always, there are risks associated with using public funds to steer the market. It is therefore important to support the right projects, with the right means at the right stage. In this context, dialogue with the business sector becomes crucial”, argue experts Fredrik Sjögren and Björn Wedin.

The background to the European Commission’s proposal for a European Competitiveness Fund is a world characterised by geopolitical risks and technological change. The fund aims, primarily through the EU budget, to pool and direct financing of projects in strategic technology areas, thereby increasing the EU’s competitiveness while at the same time reducing harmful dependencies on individual countries.

The Confederation of Swedish Enterprise welcomes, among other things, the focus on competitiveness and innovation, as well as the ambition to increase dialogue with the business sector. At the same time, however, it will be necessary to address risks such as distortions of the Single Market, insufficient evaluation of the use of public funds, and proposals requiring that goods and services must be produced in the EU.