Europe’s best days must lie ahead of us

This article is brought to you in association with the European Parliament.

At the 6th Trilateral Business Forum in Paris, EP President Metsola said that improving the productivity of the economy is the starting point for boosting Europe’s competitiveness.

6th Trilateral Business Forum

Address by the President of the European Parliament Roberta Metsola

Paris, 21st November 2024

Président du MEDEF, Monsieur Patrick Martin,

Presidente di Confindustria, Signore Emanuele Orsini,

Hauptgeschäftsführerin des BDI, Frau Tanja Gönner,

Minister Tajani, caro Antonio,

Members and participants to this Trilateral Business Forum,

Thank you for the opportunity to address you today. Let me start by saying how important it is for the European Parliament to have these discussions with European industry. Particularly at the start of a new legislative cycle, they help us understand what works, what does not, and more importantly, where we need to go next.

The backdrop against which we meet is not an easy one. We are entering the fourth winter of Russia’s invasion of Ukraine; we are seeing isolationism becoming more attractive and geopolitical divides deepening, technology rapidly advancing, and the way global economic powers perceive their industries relative to ours shifting – Europe’s place on the world stage is facing extraordinary pressure. We cannot afford to stand still or be squeezed.

We must act. Not just with an economic vision, but with a political willingness to learn, adapt and reform.

Europe’s best days must lie ahead of us.

Ladies and Gentlemen,

I am by nature an optimist, but I am here to speak today as a realist. We know the challenges, we know what is required. We just need to find the right path there.

I say this, to give context to what I think needs to be our priority and focus over the course of the next legislative cycle. To be clear, you will not find anyone more pro-European than the President of the European Parliament. But I think, that a degree of self-critical analysis, of listening more, of changing course when needed, is precisely what will strengthen our European project in the long-term and help us regain our competitive edge.

When we talk about boosting Europe’s competitiveness, productivity must be our starting point. Over the past decade, Europe’s labour productivity grew by just 0.8% per year. This is not just a statistic – it is a wake-up call. With an aging population and fewer hands each year to drive our industries, even as we invest in the reskilling and upskilling of our people, improving productivity is not just an option – it is necessary.

The key to closing this gap lies in innovation, in predictability and in ensuring profitability for our industries. It is our ticket to making-up lost ground. By accelerating our digital transition and investing in strategic sectors like clean tech, pharma, transport and semiconductors, we can drive sustainable growth and future-proof our industries.

European industry, can only thrive in the right environment with the right framework. And that means smart and effective regulation. It means focusing on implementation and predictability, not shifting the goal posts too often.

Too often, we see well-intentioned policies unintentionally stifling progress. With heavy, excessive and ever changing reporting or compliance burdens often hitting our microenterprises and SMEs the hardest.

I want the European Union to be known for its efficient regulation, rather than the red tape we still see too much of. And as co-legislator, the European Parliament has a key role to play in ensuring a predictable and simplified regulatory framework and faster access to funding.

If there is one thing we learnt as candidates for the European Parliament elections is that we need smarter, more efficient, more predictable rules. We will also need your help to speak to the other side of the table, to the Council, to the Minister, to the Heads of Governments when taking decisions on the legislative instruments that we have mentioned.

Over the past two weeks, we have held Commissioner-designate hearings and the aim was to have a new Commission on the 1st of December. It was not easy but the timing that we had envisaged will be the same like it was 5 and 10 years ago. We are not later, we are not earlier, but we are on time. The idea behind the scrutiny of these candidates is precisely to make sure that our plans, our platforms are implemented.

We also know that energy costs are holding us back. It is a critical part of the puzzle that we must solve. EU companies face electricity costs up to three times higher than in other regions, which drives up production costs, lowers margins and damages competitiveness. In the immediate term, we need to do more to diversify our energy sources through predictable and reliable partnerships – knowing that we need to be predictable and reliable too.

The situation across the Atlantic has only made this more urgent to tackle quickly.

My view is that when we talk about energy, we need to do more than just progress – we need integration. A fully interconnected European electricity market could reduce investment needs for storage and back-up capacity by around 20 to 30%. By adopting common policies – like the EU electricity market reform that the European Parliament voted on this year – we can create a system where we all benefit. That is what true strategic autonomy looks like.

Of course, none of this happens without funding. The European Union’s Multiannual Financial Framework will expire in 2027, giving us a critical opportunity to design a modern budget that is flexible, responsive to crises, and aligned with the investments we need. As budgetary authority, the European Parliament will play its part here as well.

Now public funding can take us far, but the reality is that it will not be enough. That is why completing our Savings and Investments Union is an urgent priority. It is how we are able to incentivise our companies to stay and scale-up in Europe.

How we are able to mobilise private capital to invest in our priorities and how we make it easier for the public sector to finance its share.

And here allow me a short moment to make a point on fragmentation in our markets.

Simply put: it is our own worst enemy. We see its consequences in the energy, banking and capital markets sectors. But we also see it in other industries like telecoms and defence.

Last year we celebrated 30 years since the creation of our Single Market. Obstacles and challenges have never stopped but its true test has been and will always be how able it is to continue adapting. We need to continue to ensure that the Single Market is able to deliver on its promise.

And with the necessary political will, I am confident that it can. Simple because we are running out of time.

Ladies and Gentlemen,

The European Parliament is not afraid of change. We embrace it. Because we understand the responsibility that we bear not just to Europe’s economy, but to every single person relying on it as well.

I want to assure you that in the next five years, the European Parliament will continue to focus on a Europe that serves its businesses, its industries, its families, its factories and its farmers.

A Europe that defends European interests, that drives growth and ensures stability. A Europe ready for today’s challenges and equipped for tomorrow’s uncertainties.

Thank you.