AI, biotech, energy key in EU push for competitiveness

BRUSSELS/PARIS: Artificial intelligence, biotechnology and affordable clean energy will be the focus of an European Union drive to make the bloc globally competitive and ensure it keeps pace with rivals the US and China, according to a draft European Commission paper seen by Reuters.

The EU is under pressure from member countries like France to simplify regulations around doing business, and is also facing fresh challenges with the new administration of President Donald Trump. Trump weighed in on the debate over red tape at the annual Davos meeting of the world's business elite this week, urging the EU to reduce regulations. He is also threatening to impose new tariffs on EU exports to the US.

The European Commission paper is a draft of proposals-a Competitiveness Compass-to be tabled January 29. It outlines 29 planned measures and strategies over the next two years to raise productivity through innovation and to decarbonise its manufacturing. "It is time to turn to action," it notes. "Without an urgent shift in gear and approach, the EU's future as an economic powerhouse, an investment destination and a manufacturing centre is at stake."


Europe needs to be at the forefront of tech sectors that will matter in tomorrow's economy, such as AI, advanced materials, biotech, clean energy, robotics and space, the paper says.

The paper echoes elements of a report last September by former European Central Bank chief Mario Draghi, which urged the bloc to coordinate industrial policy and massively invest to keep pace with the US and China.