Competitiveness: "SMEs must be the focus"

A meeting of European heads of government is expected to focus on strengthening competitiveness. Both Commission President von der Leyen and the skilled trades sector are calling for swift results. The German Confederation of Skilled Crafts (ZDH) emphasizes that the needs of small and medium-sized enterprises (SMEs) must be given special consideration.

In a speech before the European Parliament European Commission President Ursula von der Leyen has called on members of parliament to swiftly strengthen the European Union's competitiveness. "Our weight on the world stage depends significantly on our economic strength. Competitiveness is not only the foundation of our prosperity, but also the basis of our security," she said. It is now crucial to quickly deliver concrete results. "So everyone must do their part. This is a moment of unity and urgency."

She announced a roadmap for the Single Market by 2028 to deepen the integration of the EU. "We have the second-largest economy in the world, but we're driving with the handbrake on. The good news is: this can be changed. But we need a clear focus on the Single Market. And we have to tear down the barriers, one by one," von der Leyen explained. According to the plan, businesses should be able to operate much more easily in all member states. The roadmap is expected to be adopted by Parliament and the Council as early as March.

Curb overregulation

She also intends to continue tackling overregulation. Many simplifications have already been implemented, which are intended to reduce bureaucratic costs for businesses by €15 billion annually. However, there are still too many bureaucratic hurdles, including at the national level. Von der Leyen stated: "There is too much overregulation – the additional layers of national legislation that simply make life difficult for businesses and create new obstacles in our single market. If we are serious about simplification, we must combat overregulation and fragmentation. It is time for a thorough regulatory overhaul – at all levels." 

Ahead of the EU summit, where European heads of state and government intend to primarily discuss strengthening competitiveness, the skilled trades sector is also making its voice heard. Holger Schwannecke insists that the interests of small and medium-sized enterprises (SMEs) must be at the heart of these considerations. He argues that these businesses, with their employees, generate a large share of European economic output. They make European society more resilient, improve competitiveness, and are crucial for social cohesion, according to the Secretary General of the German Confederation of Skilled Crafts and Trades. Central Association of German Crafts.

Ensuring fair competition

"Against this backdrop, we expect unambiguous signals from the heads of state and government regarding the current and future work of the EU institutions. The European Union must return to a greater emphasis on legislative restraint and place more trust in businesses." Regulation should not be an end in itself, but should be limited to what offers added value to companies and strengthens Europe as a business location. "At the same time, we expect efforts to reduce bureaucracy to be significantly intensified."

Impractical regulations must not further weaken Europe's economic position. The needs of SMEs must be at the forefront of every legislative process. Schwannecke: "This is the only way to sustainably secure the competitiveness of the European economy. Fair competition within the European single market is essential for this. In this sense, the Data Act must remain unchanged, as it guarantees fair access to data for the many and counteracts the isolation of a few. Furthermore, we expect products from third countries to consistently comply with European requirements for safety, occupational health and safety, and environmental protection."

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