# Competitiveness Compass Canonical URL: https://digital-acquis.eu/initiative/competitiveness-compass Entry type: policy initiative Source edition current through: 31 August 2026 (2026-08-31). This is not a page modification date. Status: not recorded. A delivered policy initiative is not necessarily legislation in force. Document type: Communication Release date: 2025-01-29 ## Summary The Competitiveness Compass brings together work on innovation, industrial transition and the conditions for businesses to grow in Europe. Its agenda spans startups, strategic technologies, research and investment, alongside affordable energy, cleaner industry and circular production. Measures on the Single Market, simpler rules, procurement and standardisation accompany this sectoral work. The programme also includes trade partnerships, raw-material supplies, security and preparedness. Skills, labour mobility and quality jobs connect the economic agenda with workforce needs. The programme combines strategies, legislative proposals, investment initiatives and coordination measures across these policy areas. ## Sources - [Official source]() ## Action items (47; complete published list) ### 1. Action item 180001 Start-up and Scale-up Strategy [Q2 2025] Provenance: source document doc-019, paragraph 1. Digital dimension: yes. ### 2. Action item 180002 28th regime [Q4 2025 – Q1 2026] Provenance: source document doc-019, paragraph 2. Digital dimension: yes. ### 3. Action item 180003 European Innovation Act [Q4 2025 – Q1 2026] Provenance: source document doc-019, paragraph 3. Digital dimension: yes. ### 4. Action item 180004 European Research Area Act [2026] Provenance: source document doc-019, paragraph 4. Digital dimension: yes. ### 5. Action item 180005 AI Factories Initiative [Q1 2025], Apply AI, AI in Science, and Data Union Strategies [Q3 2025] Provenance: source document doc-019, paragraph 5. Digital dimension: yes. ### 6. Action item 180006 EU Cloud and AI Development Act [Q4 2025 – Q1 2026] Provenance: source document doc-019, paragraph 6. Digital dimension: yes. ### 7. Action item 180007 EU Quantum Strategy [Q2 2025] and a Quantum Act [Q4 2025] Provenance: source document doc-019, paragraph 7. Digital dimension: yes. ### 8. Action item 180008 European Biotech Act and Bioeconomy Strategy [2025-2026] Provenance: source document doc-019, paragraph 8. Digital dimension: yes. ### 9. Action item 180009 Life Sciences Strategy [Q2 2025] Provenance: source document doc-019, paragraph 9. Digital dimension: yes. ### 10. Action item 180010 Advanced Materials Act [2026] Provenance: source document doc-019, paragraph 10. Digital dimension: yes. ### 11. Action item 180011 Space Act [Q2 2025] Provenance: source document doc-019, paragraph 11. Digital dimension: yes. ### 12. Action item 180012 Review of the Horizontal Merger Control Guidelines Provenance: source document doc-019, paragraph 12. Digital dimension: yes. ### 13. Action item 180013 Digital Networks Act [Q4 2025] Provenance: source document doc-019, paragraph 13. Digital dimension: yes. ### 14. Action item 180014 Clean Industrial Deal and an Action Plan on Affordable Energy [Q1 2025] Provenance: source document doc-019, paragraph 14. Digital dimension: yes. ### 15. Action item 180015 Industrial Decarbonisation Accelerator Act [Q4 2025] Provenance: source document doc-019, paragraph 15. Digital dimension: yes. ### 16. Action item 180016 Electrification Action Plan and European Grids Package [Q1 2026] Provenance: source document doc-019, paragraph 16. Digital dimension: yes. ### 17. Action item 180017 New State Aid Framework [Q2 2025] Provenance: source document doc-019, paragraph 17. Digital dimension: yes. ### 18. Action item 180018 Steel and metals action plan [2025] Provenance: source document doc-019, paragraph 18. Digital dimension: no. ### 19. Action item 180019 Chemicals industry package [Q4 2025] Provenance: source document doc-019, paragraph 19. Digital dimension: no. ### 20. Action item 180020 Strategic dialogue on the future of the European automotive industry and Industrial Action Plan [Q1 2025]. Provenance: source document doc-019, paragraph 20. Digital dimension: no. ### 21. Action item 180021 Sustainable Transport Investment Plan [Q3 2025] Provenance: source document doc-019, paragraph 21. Digital dimension: no. ### 22. Action item 180022 European Port Strategy and Industrial Maritime Strategy [2025] Provenance: source document doc-019, paragraph 22. Digital dimension: no. ### 23. Action item 180023 High Speed Rail Plan [2025] Provenance: source document doc-019, paragraph 23. Digital dimension: no. ### 24. Action item 180024 Carbon Border Adjustment Mechanism Review [2025] Provenance: source document doc-019, paragraph 24. Digital dimension: no. ### 25. Action item 180025 Circular Economy Act [Q4 2026] Provenance: source document doc-019, paragraph 25. Digital dimension: yes. ### 26. Action item 180026 Vision for Agriculture and Food [Q1 2025] Provenance: source document doc-019, paragraph 26. Digital dimension: no. ### 27. Action item 180027 Oceans Pact [Q2 2025] Provenance: source document doc-019, paragraph 27. Digital dimension: no. ### 28. Action item 180028 Amendment of the Climate Law [2025] Provenance: source document doc-019, paragraph 28. Digital dimension: no. ### 29. Action item 180029 Conclude and implement ambitious trade agreements, Clean Trade and Investment Partnerships Provenance: source document doc-019, paragraph 29. Digital dimension: yes. ### 30. Action item 180030 Trans-Mediterranean Energy and Clean Tech Cooperation initiative [Q4 2025] Provenance: source document doc-019, paragraph 30. Digital dimension: yes. ### 31. Action item 180031 Joint purchasing platform for Critical Raw Minerals [Q2-3 2025] Provenance: source document doc-019, paragraph 31. Digital dimension: yes. ### 32. Action item 180032 Revision of directives on Public Procurement [2026] Provenance: source document doc-019, paragraph 32. Digital dimension: yes. ### 33. Action item 180033 White Paper on the Future of European Defence [Q1 2025] Provenance: source document doc-019, paragraph 33. Digital dimension: yes. ### 34. Action item 180034 Preparedness Union Strategy [Q1 2025] Provenance: source document doc-019, paragraph 34. Digital dimension: yes. ### 35. Action item 180035 Internal Security Strategy [Q1 2025] Provenance: source document doc-019, paragraph 35. Digital dimension: yes. ### 36. Action item 180036 Critical Medicines Act [Q1 2025] Provenance: source document doc-019, paragraph 36. Digital dimension: no. ### 37. Action item 180037 European Climate Adaptation Plan [2026] Provenance: source document doc-019, paragraph 37. Digital dimension: no. ### 38. Action item 180038 Water Resilience Strategy [Q2 2025] Provenance: source document doc-019, paragraph 38. Digital dimension: no. ### 39. Action item 180039 Omnibus simplification and definition of small mid-caps [26/2/2025] Provenance: source document doc-019, paragraph 39. Digital dimension: yes. ### 40. Action item 180040 European Business Wallet [2025] Provenance: source document doc-019, paragraph 40. Digital dimension: yes. ### 41. Action item 180041 Single Market Strategy [Q2 2025] Provenance: source document doc-019, paragraph 41. Digital dimension: yes. ### 42. Action item 180042 Revision of the Standardisation Regulation [2026] Provenance: source document doc-019, paragraph 42. Digital dimension: yes. ### 43. Action item 180043 Savings and Investments Union [Q1 2025] Provenance: source document doc-019, paragraph 43. Digital dimension: yes. ### 44. Action item 180044 Next MFF, including Competitiveness Fund and a Competitiveness Coordination Tool [2025] Provenance: source document doc-019, paragraph 44. Digital dimension: yes. ### 45. Action item 180045 Union of Skills [Q1 2025] Provenance: source document doc-019, paragraph 45. Digital dimension: yes. ### 46. Action item 180046 Quality jobs roadmap [Q4 2025] Provenance: source document doc-019, paragraph 46. Digital dimension: yes. ### 47. Action item 180047 Skills Portability Initiative [2026] Provenance: source document doc-019, paragraph 47. Digital dimension: yes. ## Referenced entries - [Clean Industrial Deal]() — status: not recorded. The Clean Industrial Deal connects industrial decarbonisation with affordable energy, investment and demand for cleaner products. Its measures address electricity costs, permitting, grid infrastructure, state aid and finance for industrial projects. Product standards, procurement and support for circular production are intended to strengthen markets for low-carbon goods and access to raw materials. The programme also covers trade partnerships and changes to the carbon border mechanism. Skills, quality jobs and measures supporting a fair transition accompany the industrial agenda, linking changes in production with the needs of workers and communities. Source document doc-019, action item 180014: > Clean Industrial Deal and an Action Plan on Affordable Energy [Q1 2025] - [Single Market Strategy]() — status: not recorded. The Single Market Strategy addresses obstacles to operating, trading and working across EU borders. It combines simplification and stronger implementation with changes to company rules, public procurement, product regulation and services. Digital procedures, common standards and better recognition of qualifications are intended to reduce fragmentation. The strategy also covers worker mobility, construction and business services, communications networks and transport. Measures for SMEs and small mid-caps seek to make compliance more proportionate and improve access to markets and finance. Cooperation with national authorities and potential changes to preventive and enforcement tools support the wider programme. Source document doc-019, action item 180041: > Single Market Strategy [Q2 2025] - [Startup and Scaleup Strategy]() — status: not recorded. The strategy aims to make it easier for innovative companies to start, grow and operate across Europe. It combines simpler company rules and digital administration with better access to finance, markets, talent and research infrastructure. Proposed measures include the 28th regime, the European Business Wallet, regulatory sandboxes and support for deep-tech investment. Work on research commercialisation, intellectual property and procurement is intended to help ideas reach customers. Talent initiatives address education, mobility and recruitment, while common definitions, a scoreboard and an annual founder survey would track changes in the startup and scaleup environment. Source document doc-019, action item 180001: > Start-up and Scale-up Strategy [Q2 2025] - [Quality Jobs Roadmap]() — status: not recorded. Source document doc-019, action item 180046: > Quality jobs roadmap [Q4 2025] - [Advanced Materials Act]() — status: forthcoming. Europe’s competitiveness in the green and digital transitions will depend on its ability to develop, produce and deploy next-generation materials at scale. To achieve this, the Commission will propose an Advanced Materials Act establishing clear framework conditions for the entire value chain; from fundamental research and prototyping to manufacturing and market uptake. The Act will focus on accelerating industrialisation, de-risking private investment and securing resilient supply chains for materials critical to clean technologies, energy, defence and space. By providing a coherent strategic framework, it aims to reduce dependencies, boost technological sovereignty and position Europe as a global leader in advanced materials innovation. Source document doc-019, action item 180010: > Advanced Materials Act [2026] - [EU Bioeconomy Strategy]() — status: delivered. The EU Bioeconomy Strategy combines regulatory, investment and market actions to support sustainable and circular bio-based activity. The Commission plans work on biotechnology, construction-product standards, biomass monitoring, bio-based plastics, public procurement, biogas and biomethane, and industrial symbiosis. It will also establish forums and investment arrangements, support blue-bioeconomy innovation, provide practical guidance for land managers, and pursue international cooperation, stakeholder dialogue and EU-wide monitoring. Source document doc-019, action item 180008: > European Biotech Act and Bioeconomy Strategy [2025-2026] - [European Innovation Act]() — status: forthcoming. It will create horizontal, Single-Market-wide conditions to accelerate deployment and diffusion of innovation. The law will (i) simplify and make rules more innovation-friendly (incl. regulatory sandboxes), (ii) unlock IP-backed finance and improve access to EU/national funding, (iii) open research & technology infrastructures to companies, (iv) make public/private procurement more supportive of novel solutions, (v) improve commercialisation of publicly funded R&I (i.e. IP, standardisation, certification), (vi) enable talent attraction/retention (e.g. employee ownership schemes), and (vii) establish EU–Member State coordination of innovation policy, helping to close the EU’s innovation gap. Source document doc-019, action item 180003: > European Innovation Act [Q4 2025 – Q1 2026] - [Life Sciences Strategy]() — status: delivered. The Life Sciences Strategy addresses fragmented funding and innovation systems, regulatory complexity and slow market uptake. Its actions include the Biotech Act, coordinated work on new biomedical research methods, a research and innovation agenda for food systems, and a data assembly for cross-regulatory cooperation. The Commission presents these measures as support for innovation, economic growth and job creation in European life sciences. Source document doc-019, action item 180009: > Life Sciences Strategy [Q2 2025] - [Quantum Act]() — status: forthcoming. The Act will make the Quantum Europe Strategy operational, fixing fragmentation by aligning EU and national programmes around a shared RTI agenda and targets. It sets EU-level governance and extends the Chips Joint Undertaking’s remit to quantum technologies, coordinating investments across EU programmes. It anchors a three-stage pipeline—Discover; Lab-to-fab via pilot lines, design tools and standards; Apply & use in lead sectors, while scaling pan-European infrastructures in quantum computing, secure communication (EuroQCI) and sensing. The Act backs skills and industrialisation, strengthens supply chains. It also drives standardisation and interoperability and fosters talent attraction. Source document doc-019, action item 180007: > EU Quantum Strategy [Q2 2025] and a Quantum Act [Q4 2025] - [Action Plan on Affordable Energy]() — status: delivered. The Affordable Energy Action Plan seeks to lower energy costs while supporting competitiveness, security and sustainability for households and businesses. Its actions cover electricity bills and supply, gas markets, energy efficiency, completion of the Energy Union, tripartite agreements for industry, security of supply and price-crisis preparedness. The Commission presented the plan as part of the Clean Industrial Deal, and says delivery also depends on measures by EU countries. Source document doc-019, action item 180014: > Clean Industrial Deal and an Action Plan on Affordable Energy [Q1 2025] - [Cloud and AI Development Act (CADA)]() — status: in progress. This law will close Europe’s compute gap by tripling data-centre capacity within 5–7 years and meeting economy-wide needs by 2035, underpinning AI development and sovereign cloud services. It will harmonise cloud policy, set minimum criteria (including for a narrow set of highly critical use cases run on highly secure EU-based cloud), and streamline permitting, site designation and access to energy/water, ensuring geographically balanced rollout. The Act will spur R&I in resource-efficient data centres, enable targeted support consistent with State-aid rules, and complement AI Factories/Gigafactories and the Chips Act ecosystem. Source document doc-019, action item 180006: > EU Cloud and AI Development Act [Q4 2025 – Q1 2026] - [Digital Networks Act (DNA)]() — status: in progress. This law will build a true Single Market for connectivity by harmonising authorisations and spectrum policy, enabling cross-border services and a coordinated path to 6G. It modernises the telecom rulebook to spur investment in fibre, 5G and cloud/edge networks, integrates satellite services, and tackles market fragmentation that keeps Europe split into various national markets. It will streamline permits, clarify open-internet rules for innovative services, support copper switch-off and cloud-based network transformation, and target up to a 50% reduction in reporting burdens. A stronger EU governance model will replace patchwork oversight, boosting resilience, security and scale for operators and users. Source document doc-019, action item 180013: > Digital Networks Act [Q4 2025] - [Electrification Action Plan]() — status: delivered. This plan will accelerate cost-effective, system-friendly electrification to lower energy costs, boost competitiveness and cut emissions. It tackles supply and demand across industry, transport and buildings, and will run in parallel with a Heating & Cooling Strategy. Delivery focuses on reliability and flexibility, expanding and digitalising grids, scaling storage and demand response, deepening cross-border integration, and encouraging new demand near clean generation. Policy levers will improve the electricity-to-fossil price ratio (i.e. energy taxation, network tariffs, removing non-energy charges) while mobilising financing, manufacturing capacity and skills along the value chain. Progress will be tracked using KPIs, including raising electricity’s share of final energy toward 32–33% by 2030. Source document doc-019, action item 180016: > Electrification Action Plan and European Grids Package [Q1 2026] - [European Grids Package]() — status: delivered. The European Grid Package will fast-track expansion and modernisation of transmission and distribution networks, deepening market integration and lowering bills. It streamlines TEN-E, accelerates permitting — including environmental assessments — and mandates integrated, cross-border planning with effective cost-sharing, focusing on interconnectors and distribution grids. It prioritises digitalisation, flexibility and efficient use of existing assets, while increasing visibility of manufacturing supply needs. An EIB “grids manufacturing package” (≈€1.5 bn) will underpin EU component capacity, and an “Energy Highways” effort will tackle critical bottlenecks. Together, the measures unlock renewables and storage, strengthen security of supply, and support electrification at least cost. Source document doc-019, action item 180016: > Electrification Action Plan and European Grids Package [Q1 2026] - [AI Factories]() — status: not recorded. Open, EU-wide hubs built around EuroHPC supercomputers that bundle AI-optimised compute, data storage, programming support and talent to develop frontier models and applications. Startups, SMEs, researchers and public bodies get streamlined one-stop access to computing time, data labs linked to Common European Data Spaces, and services for testing, validation and skills—cutting training from months to weeks and lowering costs. The first 13 Factories across 17 Member States are networked, with AI Factory Antennas extending reach. EuroHPC will provide a single entry point and procure AI-dedicated systems in 2025/26, tripling Europe’s available AI capacity. Source document doc-019, action item 180005: > AI Factories Initiative [Q1 2025], Apply AI, AI in Science, and Data Union Strategies [Q3 2025] - [Competitiveness Coordination Tool (CCT)]() — status: not recorded. The Competitiveness Coordination Tool joins the EU, Member States and industry to deploy major investment projects and pursue reforms supporting strategic value chains. Current projects range from AI Gigafactories and clean-transport corridors to batteries, energy connections, chemicals, med-biotech, bio-based materials, offsite construction, circularity hubs and advanced chips. Examples include €20 billion being mobilised for AI Gigafactories and €10 million of initial EU funding for the European Med-Biotech Accelerator. The Tool is testing a new way to coordinate investment across Member States. Source document doc-019, action item 180044: > Next MFF, including Competitiveness Fund and a Competitiveness Coordination Tool [2025] - [European Competitiveness Fund (ECF)]() — status: in progress. The EU’s investment engine for 2028–2034 will consolidate 14 programmes under a single rulebook and access point to back projects from research to scale-up, deployment and manufacturing. It will operate through four policy windows—clean transition, digital leadership, health/biotech/bioeconomy, and resilience/security/defence/space—and mobilise the full EU financial toolbox, including an ECF InvestEU instrument, alongside project advisory and SME services. The Fund’s indicative envelope is €234.3 billion, with Horizon Europe tightly connected for a seamless journey from idea to market. Overall, the ECF de-risks private capital, cuts fragmentation, and accelerates high-impact investments with EU value added. Source document doc-019, action item 180044: > Next MFF, including Competitiveness Fund and a Competitiveness Coordination Tool [2025] - [Savings and Investments Union (SIU)]() — status: in progress. The Savings and Investments Union programme seeks to increase retail participation, channel savings into productive investment and strengthen EU capital markets. It includes a blueprint and tax recommendation for savings and investment accounts, a financial-literacy strategy, pension measures and measures on institutional equity investment. Further work covers venture and growth capital, cross-border investment barriers, trading and post-trading rules, supervision, banking integration and a mid-term review. Source document doc-019, action item 180043: > Savings and Investments Union [Q1 2025] - [Skills Portability Initiative (SPI)]() — status: forthcoming. The initiative will remove barriers to cross-border work by making skills and qualifications usable across the Single Market. It will consider a legislative proposal to ease mobility and promote common EU formats for interoperable digital credentials, building on EQF, Europass and ESCO. Recognition in regulated professions will be expanded and modernised using digital tools, while simpler common rules will be explored to recognise third-country nationals’ skills. In parallel, the EU will develop a framework for automatic recognition of qualifications and learning periods in school, VET and higher education, and examine accession to the Lisbon Recognition Convention. Source document doc-019, action item 180047: > Skills Portability Initiative [2026] - [Union of Skills]() — status: delivered. Union of Skills measures span basic education, digital learning, science and technology education, vocational training, higher education and labour-market mobility. The programme lists action on basic skills, a Skills Guarantee, skills academies, university-business partnerships, portability and recognition of qualifications, a European degree or label, and talent attraction. Its timetable includes pilots, strategies, frameworks and legal arrangements. Source document doc-019, action item 180045: > Union of Skills [Q1 2025] - [Circular Economy Act (CEA)]() — status: forthcoming. The Act will create a true Single Market for waste and secondary raw materials, boosting supply and demand for quality recyclates at competitive prices. It will harmonise end-of-waste criteria, simplify and expand extended producer responsibility (including a one-stop producer registry), and revise e-waste rules to recover critical materials, while aligning with the Ecodesign for Sustainable Products framework. Public procurement criteria, incentives for scrap use, and digitalised demolition permits will accelerate circular design and recycling. Strong enforcement—including for e-commerce channels—will ensure compliance. Source document doc-019, action item 180025: > Circular Economy Act [Q4 2026] - [EU Inc. – 28th Regime]() — status: in progress. It will create an optional, EU-wide corporate framework—digital by default—to let innovative firms set up, operate, and raise capital seamlessly across borders. The proposal may rely on TFEU Article 352 or a harmonised national form via Articles 50/114, with a progressive, modular design. It targets 48-hour incorporation and “once-only” data sharing via BRIS, EUID, and an EU Company Certificate, leveraging the European Business Wallet. Investment-friendly options under consideration include simpler capital increases, flexible share classes, and standard private-equity terms. Complementing the European Innovation Act, it cuts failure costs, fragmentation, and compliance burdens. Source document doc-019, action item 180002: > 28th regime [Q4 2025 – Q1 2026] - [European Business Wallet]() — status: in progress. It will provide a legally recognised digital identity for economic operators, enabling companies to share verified data and credentials across borders and receive notifications in a secure channel. Built on BRIS and the European Unique Identifier, and aligned with the EU Digital Identity Wallet rollout and the Once-Only Technical System, it replaces document-heavy compliance with interoperable, data-based exchanges. The Wallet is a cornerstone of the Single Market simplification agenda and the EU Startup & Scaleup Strategy, lowering costs for SMEs, easing licensing and reporting, and making cross-border operations seamless, turning digital-by-default rules into practice across the EU business lifecycle. Source document doc-019, action item 180040: > European Business Wallet [2025] ## Associated policy priorities - [Research, Technology & Industrial Capacity]() - [Infrastructure & Strategic Resources]() - [AI & Data Capabilities and Deployment]() - [Competitiveness, Innovation & Strategic Investment]() - [Human Capital, Skills & Talent Mobility]() - [Single Market Deepening & Harmonisation]() - [External Strategy, Security & Democratic Resilience]() --- [Reading guide and interpretation notes]() · [Methodology]()