Von der Leyen’s competitiveness compass: a step forward or a disconnected vision?

Just two days ago, I called for concrete action from Europe’s leadership. Today, we have a response: Ursula von der Leyen has presented the EU Competitiveness Compass, a roadmap based on the Draghi report. It is an ambitious document that acknowledges both Europe’s strengths and its vulnerabilities—while outlining key areas for improvement.

But is it enough?

Acknowledging strengths—a step forward

Von der Leyen is right to highlight Europe’s formidable foundation: a strong industrial base, a highly educated workforce, and a vast Single Market. These are real strengths. She also acknowledges past dependencies—on cheap Chinese labor, Russian energy, and outsourced security—recognizing that this model is no longer viable. That level of clarity is important.

Even more promising is the focus on innovation, decarbonization, and resilience. The proposal to launch an AI Strategy, including an ‘Apply AI’ initiative and ‘AI Factories,’ is a welcome step in a world where technological leadership defines global power. The call for a European Savings and Investment Union to unlock venture capital also addresses a long-standing issue: Europe lags behind the US and China in scaling its innovations.

But… where’s the urgency?

Yet, reading through von der Leyen’s statement, I cannot help but feel a gap between vision and execution. There is a plan, but does it match the urgency of the moment?

She emphasizes the need for speed and unity, but Europe is already years behind in AI, deep tech, and semiconductor independence. When will these strategies turn into real, game-changing action? Take the AI initiative: The US and China have already deployed billions in AI infrastructure. Will ‘AI Factories’ and an ‘Apply AI’ initiative be enough to close the gap—or are we just describing the problem while others solve it?

Similarly, the Green Transition is reaffirmed as a priority, but how will Europe ensure that clean-tech investments stay in Europe when the US Inflation Reduction Act (IRA) is pulling companies and capital westward? Public procurement preferences and state aid relief sound good, but they require swift, decisive action to be competitive.

A 28th regulatory regime—or a 27-state bottleneck?

One of the biggest issues facing European startups is fragmentation across the Single Market. Von der Leyen proposes a voluntary ‘28th regulatory regime’, offering a simplified set of rules across all member states. While this sounds good in theory, it also signals that the EU accepts its own regulatory complexity rather than fixing it. Why not push harder for actual harmonization?

Europe’s competitiveness: a test of leadership

Von der Leyen closes by emphasizing political will. The endorsement from EU leaders in Budapest signals alignment, but alignment is not action. Europe’s leaders must move beyond declarations and into decisive execution.

I welcome the Competitiveness Compass as a necessary step in the right direction. But Europe cannot afford another well-intended roadmap that fails to translate into impact. We must see clear execution timelines, bold regulatory simplifications, and rapid capital deployment—not just more frameworks and reports.

So, Ursula—and soon Mette, who's showing quite a bit of action and initiative these days—, the floor is yours. The world is moving. Will Europe?

If you want to read the statement by President von der Leyen on the EU Competitiveness Compass:: Statement on the EU Competitiveness Compass