In 2024, the European Union made significant strides in strengthening its global competitiveness through a range of initiatives aimed at fostering sustainable economic growth and enhancing industrial innovation. Faced with pressing challenges such as economic dependencies, geopolitical tensions and growing global competition, the EU focused on strategic measures to secure vital resources, promote technological leadership and protect its markets. Key efforts included advancing trade partnerships and agreements, reforming competition and trade policies and ensuring a more resilient economy. By adopting a comprehensive approach, the EU aimed to strengthen its position as a global leader in sustainable and fair trade while safeguarding economic security and promoting a competitive industrial environment.

The future of the EU’s competitiveness remained a pressing issue during the year, and was identified as one of the priorities for the new Commission - PDF file, open a new tab. (see Chapter 0). While Europe is one of the most competitive and innovative regions in the world, it still faces several structural issues. EU companies operate in a turbulent world, facing significant challenges such as unfair competition, high energy prices, skills and labour shortages and difficulty accessing capital. In 2024, the new Commission introduced the Competitiveness Compass - open a new tab., a major initiative that will frame the work on the EU’s competitiveness going forward.

The challenges to the EU’s competitiveness are numerous and complex, and as such call for a comprehensive and sophisticated response. The EU already has several initiatives in place to strengthen the competitiveness of its businesses and industries. Cross-cutting measures – from anticipating future standardisation needs in areas such as raw materials and quantum technologies to a Technical Support Instrument - open a new tab. to support key projects that will enhance industrial production capacities – aim, for example, to enable the EU to reach its goal of becoming a global leader in strategic technologies.

Moreover, competitiveness should not come at the expense of people or the planet. The EU is ensuring its approach to growth stays aligned with its values. This includes advancing a circular economy (see Chapter 4), striving to lead in the areas of strategic and green technologies (see Chapters 4 and 5) and making sure people are continually equipped with the skills needed to match the evolving needs of industry (Chapter 6).

The Annual Single Market and Competitiveness Report

To better understand and assess the functioning of the Single Market and the EU’s competitiveness, the Commission published the 2024 edition of its Annual Single Market and Competitiveness Report - open a new tab.. Compared to reports from previous years, this edition included a more detailed focus on competitiveness. The 2024 report builds on the nine key drivers of competition identified in the 2023 long-term-competitiveness communication - PDF file, open a new tab.. These drivers will be used to track the EU’s progress from year to year. The report also highlighted the strengths of the Single Market that can be used to increase the EU’s competitiveness and emphasised that financing the green and digital transitions needs a smart mix of tools. This includes more innovative use of EU funding to boost and protect private investment, along with using public procurement to promote sustainability, resilience, innovation and socially responsible practices.

The Letta and Draghi reports

In addition to the Commission’s own analyses, two independent reports with recommendations to strengthen the Single Market and the EU’s competitiveness were issued in 2024. The report Much More than a Market - open a new tab., prepared by former Italian Prime Minister Enrico Letta for the Belgian Presidency of the Council of the European Union, outlined the need for the Single Market to evolve and embrace the digital and green transitions, exploring new opportunities for enlargement and improving the EU’s security.

Furthermore, the analysis titled The Future of European Competitiveness – A competitiveness strategy for Europe - open a new tab., prepared by former President of the European Central Bank Mario Draghi at the request of Ursula von der Leyen, President of the European Commission, argues that the EU should make use of the clean transition to increase competitiveness and bring down energy prices. The report also emphasises the need to drive innovation and accelerate the digital transition by mobilising public and private investment, improving the business environment and cutting red tape, and by equipping people with skills for new job markets. Finally, it highlights the need to improve the EU’s overall resilience, defence and security, given the current geopolitical context.

The findings of the Draghi report contributed to the Commission’s work on a new plan for Europe’s sustainable prosperity and competitiveness. Three main points - open a new tab. of the Draghi report will also form the foundation of the abovementioned Competitiveness Compass, namely closing the innovation gap between the EU on the one hand and China and the United States on the other; creating a joint plan for decarbonisation and competitiveness; and increasing security and reducing dependencies. The report will also play a key role in developing the Clean Industrial Deal for competitive industries and quality jobs.

Another challenge the EU faces is that of striking a balance between trade openness and economic security. To prevent the EU from becoming over-reliant on exclusive suppliers it must promote its competitiveness, protect its economy against risks and partner with others that share its economic interests.

These three strands of action (promote, protect and partner) form the foundation of the Economic Security Strategy - open a new tab.. Since the introduction of the strategy in June 2023, the Commission has taken several steps to assess and reduce risks. It has initiated the first review of risks relating to the weaponisation of economic dependencies or economic coercion and has started a deeper analysis of these issues.

In addition, the anti-coercion tool - open a new tab. is now in force. This helps the EU to take action – in line with international law – when non-EU countries exercise economic coercion on the EU or its Member States.

Research and innovation are cross-cutting priorities, and are vital not only for the EU’s competitiveness - open a new tab. but also for the green and digital transitions, economic security and open strategic autonomy.

To boost innovation, in particular deep-tech innovation, the EU launched the New European Innovation Agenda - open a new tab. in 2022. A report - open a new tab. published in 2024 showed that 17 out of the agenda’s 25 measures have been completed, while the remaining eight are ongoing. ‘Deep tech’ refers to technologies that are so innovative they often end up disrupting or completely changing the ways that industries, economies or even societies function.

In addition, the EU’s funding programme for research and innovation, Horizon Europe - open a new tab., continues to boost the EU’s competitiveness by facilitating collaboration and strengthening the impact of research and innovation. It also supports the creation and better diffusion of technologies. (See Chapter 6 for more on Horizon Europe.) The abovementioned European Innovation Council, which is an innovation programme that has a budget of €10.1 billion to identify, develop and scale up breakthrough technologies and innovations - open a new tab., is one initiative established under the Horizon Europe programme.

Another key part of enhancing the EU’s competitiveness is its competition policy, namely rules and laws designed to ensure effective competition between businesses. By enforcing competition policy, the Commission creates an environment that encourages businesses to be more efficient, adaptive and innovative, and that leads to superior, cost-effective products for consumers. It also prepares EU companies for global success by driving investment in research, product development and process streamlining in a bid to outperform rivals. Enforcement measures have a significant effect on discouraging companies from engaging in anti-competitive practices.

Antitrust rules

Antitrust enforcement - open a new tab. typically deals with company practices that aim to push competitors out of the market, ultimately harming consumers. This is common in the digital technology sector, especially with large tech companies. For instance, in 2024, the Commission fined Meta €797.72 million - open a new tab. for abusing its dominant position through tying practices and imposing unfair trading conditions on online classified-advert service providers to benefit its own platform. In another case, the Commission accepted Apple’s proposed commitments - open a new tab. to eliminate obstacles to accessing the technology for in-store contactless payments via mobile devices.

Competition rules can also be used to act directly against high prices and unfair trading conditions that stifle competition to the detriment of consumers. During the year, the Commission fined Apple more than €1.8 billion for abusing its dominant position - open a new tab. by imposing unfair trading conditions on music app developers, potentially causing users to pay significantly higher prices for music streaming subscriptions.

The Commission’s antitrust efforts are not limited to the tech industry. In May, it imposed a €337.5 million fine on Mondelēz under antitrust rules - open a new tab. for obstructing intra-EU trade of its chocolate and biscuit products (some well-known brands under Mondelēz’s control include Milka, Côte d’Or, Toblerone, Oreo, LU and Belvita).

In another significant case from 2024, the Commission fined the pharmaceutical company Teva €462.6 million - open a new tab. for delaying the competition of its multiple sclerosis treatment, Copaxone. Teva did so by artificially extending Copaxone’s patent protection and systematically spreading misleading information about a competing product to hinder its market entry and adoption.

Mergers

The EU also safeguards competitive markets through merger control. Whether horizontal mergers between direct competitors, vertical mergers along supply chains or conglomerate mergers involving complementary products or services, the Commission investigates to prevent negative outcomes such as price hikes and the stifling of innovation.

The EU Merger Regulation, which marked its 20th anniversary in 2024 - open a new tab., is the Commission’s legal basis for reviewing concentrations with an EU dimension and determining their compatibility with the Single Market. During the year, Amazon withdrew its plan to buy iRobot - open a new tab. after the Commission raised concerns that the deal could reduce competition by limiting other suppliers’ access to Amazon’s marketplace, potentially leading to higher prices, lower quality and reduced innovation for consumers. In contrast, the merger between Microsoft and Activision - open a new tab. is an example of the Commission approving a transaction, subject to commitments. The merging parties offered commitments that addressed all competition concerns and introduced measures that will significantly improve cloud game streaming compared to the current situation.

The Commission also adopted a Revised Market Definition Notice - open a new tab. in February to stay current with market dynamics. The revised notice updates the guidance on how to define relevant markets in the context of merger and antitrust cases. This makes it easier for businesses to understand how the Commission enforces competition laws and improves compliance.

State aid

Foreign Subsidies Regulation

The EU not only ensures that internal competition is fair but also checks that businesses in the EU have a fair chance to succeed when faced with international competition. The Foreign Subsidies Regulation - open a new tab., which started to apply in July 2023, addresses possible distortions to the internal market caused by foreign subsidies. These can give companies an unfair advantage in acquiring EU-based firms, engaging in public procurement or making investment and business decisions within EU markets.

In 2024, the Commission launched several investigations within the scope of public procurement, leading to the Chinese companies under investigation withdrawing from the related bidding processes. The Commission also initiated a preliminary review of possible foreign subsidies in the EU wind sector. This preliminary review is ongoing.

In addition, the Commission conducted an in-depth investigation into the proposed acquisition of PPF Telecom Group BV, an EU-based telecom operator in Bulgaria, Hungary and Slovakia, by e&, a telecom operator established in the United Arab Emirates. The Commission had preliminary concerns that e& may have been granted foreign subsidies that could distort the Single Market. In September, the Commission cleared this transaction subject to a series of commitments offered by the parties involved to address the concerns that had been raised.

Industrial policy - open a new tab. generally refers to policies that foster economic activity. It can include everything from bringing about structural changes in various industries and creating an environment that supports companies, especially small and medium-sized enterprises, to better exploiting the industrial potential of research, new technologies and innovation. The EU’s industrial policy - open a new tab. aims to strengthen the competitiveness of EU industry and to promote a more sustainable, resilient and digitalised economy that creates jobs.

During the year, the EU revamped its industrial policy framework, with several acts and regulations entering into force. The Critical Raw Materials Act - open a new tab. secures access to strategic raw materials, while the Net-Zero Industry Act - open a new tab. spurs clean-technology manufacturing. These two acts are part of the Green Deal Industrial Plan - open a new tab., introduced in 2023, which aims to strengthen the competitiveness of net-zero technologies in the EU and support the fast transition to climate neutrality. In addition, the Ecodesign for Sustainable Products Regulation - open a new tab. introduces new requirements for product design and recycling, and the revised Industrial Emissions Directive - open a new tab. strengthens pollution control. Finally, the communication on advanced materials for industrial leadership - PDF file, open a new tab. underpins research and innovation in cutting-edge materials, in line with the European Green Deal (see Chapter 4) and industrial goals.

These initiatives are key to enhancing the EU’s competitive edge and leadership in the global transition to a sustainable economy. The EU’s industrial policies are designed to meet the evolving needs of the EU market and ensure the EU remains a leader in the green transition.

Industrial policy is also crucial to effectively implementing, but also benefiting from, the European Green Deal. In 2024, the EU took stock of the Clean Transition Dialogues - open a new tab., launched in 2023 as a new way for the EU to engage with industry and social partners so as to both understand their current challenges and strengthen and support the implementation of the Green Deal. Nine dialogues have taken place, focusing on hydrogen, energy-intensive industries, clean technology, energy infrastructure, critical raw materials, the forest-based bioeconomy, cities, clean mobility and steel. The dialogues revealed the need for simplified regulation, abundant and affordable clean energy, modern infrastructure, easier access to finance and a stronger Single Market in a globally competitive environment.

Raw-materials diplomacy

Access to raw materials - open a new tab. on global markets is one of the EU’s priorities. In 2024, the EU took significant steps to expand cooperation on critical raw materials, which are essential for the global green and digital transitions, with international partners.

In April, the EU, the United States and the Minerals Security Partnership countries, joined by Kazakhstan, Namibia, Ukraine and Uzbekistan, announced the launch of the Minerals Security Partnership Forum - open a new tab., a new platform for cooperation on critical raw materials. Eleven additional countries and territories joined in 2024: Argentina, the Democratic Republic of the Congo, the Dominican Republic, Ecuador, Greenland, Mexico, Peru, the Philippines, Serbia, Türkiye and Zambia.

The Critical Raw Materials Club, announced in 2023, has become part of the Minerals Security Partnership Forum. The forum brings together resource-rich countries and countries with high demand for these resources.

The EU also signed bilateral memoranda of understanding with Australia, Norway, Rwanda, Serbia and Uzbekistan, further expanding its network of critical raw materials partners and securing a diversified and sustainable supply of such materials for both the EU and its partner countries.

Stronger agreements to facilitate trade

Diversifying EU businesses’ access to trading partners through trade agreements strengthens the resilience of the EU economy in the face of an increasingly uncertain geopolitical climate. In addition, more than 30 million jobs in the EU are supported by exports, with almost 10 million being the result of foreign investment within the Single Market.

In 2024, the EU concluded a Digital Trade Agreement with Singapore - open a new tab. that will enhance cross-border data flows and benefit businesses and consumers engaging in digital trade. This is the first EU agreement of its kind.

The Commission also finalised negotiations for a groundbreaking EU–Mercosur partnership agreement - open a new tab.. This agreement comes at a critical time for both parties, offering significant opportunities for mutual benefits through strengthened geopolitical, economic, sustainability and security cooperation.

The EU also strengthened its relations with like-minded partners, including Canada - open a new tab. and countries in the Indo-Pacific region, to promote a fair digital transformation that respects fundamental rights.

On 26 March, the EU and South Korea held the second Digital Partnership Council - open a new tab. in Brussels, Belgium, reaffirming their commitment to cooperate on key digital technologies for the benefit of citizens and economies.

Protecting EU businesses from unfair trade

In 2024, the EU took significant action to defend EU businesses from unfair trade practices. In total, the Commission launched 33 new Trade Defence Instrument - open a new tab. cases over the course of the year, bringing the overall number of cases, including reviews, to 63. This is a significant increase compared to the 12 new cases that were opened in 2023. The Commission also imposed 10 provisional measures (including one anti-subsidy measure) and seven definitive measures (including one anti-subsidy measure). These cases and measures play a key role in safeguarding EU competitiveness and jobs, with 629 655 jobs protected in 2024.

The Commission also imposed definitive countervailing duties on imports of battery electric vehicles - open a new tab. from China. The decision followed an investigation that found that the battery electric vehicle value chain in China benefits from unfair subsidisation, which is threatening economic injury to EU producers. Technical-level contact between the EU and China continues in pursuit of a possible negotiated outcome on price undertakings. The Commission remains fully committed to finding a mutually acceptable solution, while steadfastly defending EU businesses against unjustified retaliatory measures. The safeguards on steel imports - open a new tab. were also extended for two more years to protect EU steel producers from high levels of global steel overcapacity.

Further progress was also made in removing obstacles to EU exports in non-EU countries, eliminating 41 barriers affecting goods across sectors such as agriculture, pharmaceuticals and automotive. Notably, the Commission successfully addressed Turkish legislation that had discriminated against EU tractor exports, unlocking access to a €2.5 billion market.