Boosting Europe’s Competitiveness Tops the Agenda at Informal ECOFIN Meeting in Copenhagen

Europe is facing major challenges concerning weak productivity and growth, as well as increasing competition from other regions – while at the same time needing to significantly step up spending on security and defence. Strong and productive economies across the EU are crucial to safeguarding Europe’s prosperity and security.

At the informal ECOFIN in Copenhagen the Danish Presidency will highlight simplification of EU legislation and reduction of burdens on European businesses as a central part of the effort to strengthen competitiveness.

The ministers will discuss options for gaining a clearer overview of the costs and burdens associated with new EU legislative proposals across different policy areas. The aim is to better minimise costs and burdens, while still achieving the key objectives of EU legislation.

Minister for Economic Affairs Stephanie Lose says:

“The EU and its single market bring huge benefits. But the net benefits could be even greater if we succeed in tackling the burdens from EU legislation. We’re making good progress in reducing burdens from existing EU rules. But there’s no point in cutting burdens with one hand if we’re creating new burdens with the other. The Danish Presidency is pushing for a stronger forward-looking focus on the burdens from future EU legislation. We need to get EU rules right the first time – keeping burdens as few as possible while still achieving the benefits for our economy, businesses, consumers and the environment.”

Ministers and central bank governors will have a joint session with particular emphasis on the possibilities to simplify EU financial regulation. This would enable the financial sector to contribute more effectively to economic activity, the development of European capital markets, and Europe’s competitiveness.

Minister for Economic Affairs Stephanie Lose says:

“Since the financial crisis, the EU has rightly strengthened financial regulation. But the rules for banks and other financial firms have become numerous, complex and costly. The financial sector plays a key role in the economy and in our work to boost European competitiveness. That’s why it’s so important that the rules are simple, the burdens are light, and the total costs are low – while still safeguarding financial stability and protecting investors and consumers.”

The ministers will also discuss EU member states’ national efforts on structural reforms aimed at increasing productivity and competitiveness. Central reforms concern labour market and education reforms, business regulation and framework conditions, reforms to support innovation and digitalisation, capital market reforms, and reforms of governance and public administration.

Minister for Economic Affairs Stephanie Lose says:

“If we want to strengthen Europe’s competitiveness, initiatives at the EU-level are important. But national structural reforms in every EU member state are at least as important. Reforms are also key to financing our priorities, like stronger defence and the green transition. Reforms are a national responsibility, but we can learn a lot from each other. And Europe’s economy as a whole will be stronger if all countries take action on economic reforms at home.”

The EU ministers’ colleagues from Ukraine, the United Kingdom, Canada and Norway have been invited to discuss geopolitical challenges and the responses from the EU and like-minded countries.

Minister for Economic Affairs Stephanie Lose says:

“The world order is disrupted by geopolitical tensions, Russia is waging war in Europe, and international cooperation and trade are under pressure. The good news is that Europe and like-minded countries still make up a large share of the global economy and trade, and that we can shape our own economic future and take responsibility for our security. But it’s going to take a lot of hard work, both at the EU and the national level.”