EU on the Environment: Must Become More Flexible

The EU sets the direction towards better competitiveness and less bureaucracy - but still promises a continued investment in the climate. However, we must be flexible, says Commission President Ursula von der Leyen.

» Published: January 29 2025

EU on the Environment: Must Become More Flexible
Photo: Geert Vanden Wijngaert/AP/TT

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Simpler rules, more money, and cheaper – but also cleaner – energy are key components of the competitiveness compass that von der Leyen is now presenting.

The plan will dominate EU policy in the coming years. Much is based on the report that the former head of the European Central Bank, Mario Draghi, presented last autumn, warning that the EU must invest – or risk going under.

The compass includes promises of around 50 initiatives covering everything from major AI investments to increased support for cleaner industry and more trade agreements with the rest of the world.

Money will be obtained through a more "focused" and modernized EU budget, in the proposal for the next long-term budget, which is expected later this year. At the same time, great emphasis is also being placed on the need for more private investments.

Simpler rules

EU companies will also be able to save both money and time when the Commission promises to reduce the regulatory burden and bureaucracy by 25-35 percent.

Demand has already been made for simplifications within the EU's many environmental regulations. Ursula von der Leyen assures, however, that the "green deal" – the EU's fight against climate change – will not be abandoned.

But she also notes that the EU must be "flexible and pragmatic" in climate policy as well.

We must be ready to adapt. We must be able to say that this was not enough, or that this was too much, she says at a press conference in Brussels.

A prerequisite

Anna Stellinger, head of international and EU affairs at the Confederation of Swedish Enterprise, welcomes the compass's offensive direction and emphasis on private investments. And she agrees on the importance of less bureaucracy.

A dramatic simplification of the rules is needed. This is a key and a prerequisite for the EU's competitiveness and the green transition, says Stellinger.

The EU Commission's competitiveness compass sets the direction for Europe to become "the place where future technologies, services, and clean products are invented, manufactured, and placed on the market, and at the same time becomes the first climate-neutral continent".

The focus is on stronger support for innovation and clean industry, as well as increased security in terms of access to raw materials and energy. In addition, simpler rules and more money are promised, both from private funds and through a "refocused" EU budget.

The compass will be followed by concrete proposals in various areas over the coming years.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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