Iratxe García: "The Competitiveness Compass is not fit for the job. It doesn't serve businesses, people, nor the environment"

Iratxe Garcia European Parliament 2024

The Socialists and Democrats contend that the Competitiveness Compass fails to provide solutions to current and future challenges and hides behind the mantra of simplification – a potential backtrack on EU standards. S&D leader Iratxe García is calling for a real strategy that serves our economy, our citizens, and our environment, rather than dismantling the core pillars of the EU project. Among the missing elements, she highlights the lack of a combined strategy to boost investment and a commitment to a permanent investment tool at European level that realistically will enable the achievement of a very demanding agenda in a highly challenging geopolitical context.  

S&D Group President, Iratxe García, said:

“The Competitiveness Compass does not fully address most problems, nor does it provide realistic solutions to them. We welcome the commitment of maintaining the targets of 90% reduction on net greenhouse gas emissions for 2040, however we don't have any guarantees that there won't be any backtrack on environmental and social standards such as worker’s rights, climate neutrality, sustainability, a just transition, and in particular, the other objectives behind the Green Deal. Lowering standards in our EU Single Market that may compromise the quality of people’s life is not the way for the EU to become a role model in the world.

“This communication is an ideologically biased and very selective interpretation from the Draghi and Letta reports. It deliberately leaves out key elements such as social cohesion, reducing inequalities, and fair taxation, without which competitiveness will be impossible to achieve.

“The Commission President should understand that competitiveness should not be seen as an end in itself but rather a way to preserve and improve well-being for all. The EU’s economy can only be competitive if we make our economy fit for the future and more resilient.

“We also remind President Von der Leyen that the Competitiveness Compass should be fully aligned with the already agreed upon benchmarks in the EU Green Deal and in full respect with the European Pillar of Social Rights.

“What European businesses and industries need is stability, predictability, and more tools for investment. Reopening legislation will create unnecessary legislative chaos and simply does not serve their goals. We can't ask them to do the opposite of what we told them to do some months ago.

“In addition, we can't do more with less. We need a combined strategy for public and private investment and a commitment for a permanent investment tool at European level. In addition, we need a reinforced MFF to address new priorities.

“The transition to climate neutrality needs to happen in a fair way, by lifting up communities and workers, and create opportunities for people and society as a whole. The just transition and the EU social model is key when addressing competitiveness and should be at the core of EU policymaking.

“Let's end with the double standards. If we condemn the Trump administration for abandoning international commitments and treaties, let's not now be the ones who promote the race to the bottom."

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