BRUSSELS (AP) — European Union leaders on Thursday debated a new “European Competitiveness Deal” aimed at helping the 27-nation bloc close the gap with Chinese and American rivals amid fears the region's industries will otherwise be left behind for good.
In a volatile geopolitical landscape redefined by the ongoing war between Russia and Ukraine and increasing tensions in the Middle East that create new economic challenges, EU leaders believe there is an urgent need for action.
China, the U.S. and the European Union are the three largest economies in the world, but the EU's share has diminished over the past 30 years. Europe is now feeling pressure amid U.S. and Chinese efforts to support investment in domestic production through subsidies and tax breaks, particularly in renewable energy and green technology.
Before the summit in Brussels, the former president of the European Central Bank, Mario Draghi, said the EU did not pay enough attention to “external competitiveness as a serious policy question” and insisted Europe's biggest economic rivals “are no longer playing by the rules.”