The Member States’ requests to shorten the draft Budapest Declaration on Competitiveness have been heeded. The version of the text dated 2 November is now just four pages long, compared with nine previously.
This draft, obtained by Agence Europe, was presented to the Committee of Permanent Representatives of the Member States to the EU (‘Coreper’) on Monday 4 November. In line with the expectations of the EU27, the authors have cut out the details of the concrete actions to be taken in each area and have kept only the broad directions that the European Council wishes to take.
A final version of the declaration is expected for a final Coreper meeting on Wednesday 6 November.
While the sensitive subject of funding for competitiveness has been shortened, it retains the key elements of the previous version, namely the desire to explore the development of new instruments and to work towards the introduction of new own resources for the Multiannual Financial Framework (MFF).
At the Coreper meeting on Monday 4 November, several Member States reiterated their request that these two references be removed. However, some countries are keen to mention the new own resources and new instruments. Some diplomats regret that the role of the Multiannual Financial Framework (MFF) has lost some of its importance in this version of the document and that the language is less ambitious on the urgent need for funding. “If we don’t have the courage at this stage, it’s going to be complicated later”, admits a European source.
With regard to the Capital Markets Union (CMU), the text discussed on Monday takes up the idea of achieving a ‘Savings and Investment Union’ (see EUROPE 13393/3) by 2026. However, some delegations would like to see this deadline abolished. Moreover, the leaders are likely to insist on the need to increase equity investment in order to strengthen European competitiveness in “critical technologies”. The previous draft suggested “greater coordination in tax matters” to boost competitiveness and growth, but this point was withdrawn.
With regard to strengthening the internal market, the Member States should still invite the Commission to present a horizontal strategy by June 2025, accompanied by a timetable, but the aim is no longer to specify what flagship elements this strategy should contain.
The same logic applies to the ‘industry’ section, where the leaders should simply call on the Commission to present an industrial strategy as a matter of priority, without making any specific demands. For example, there is no longer any mention of Important Projects of Common European Interest (IPCEI) or of competition policy as levers for competitiveness.
On energy, the latest version of the declaration is also shorter, mentioning only the objectives of energy sovereignty, climate neutrality by 2050 and the construction of a genuine Energy Union “characterised by a fully integrated energy market”.
As mentioned in the latest version of the text, the main focus is on the commitment to remedy the situation resulting from high and volatile electricity prices in Europe.
To see the draft declaration, go to https://aeur.eu/f/e78 (Original version in French by Léa Marchal, Bernard Denuit and Pauline Denys)