Introduction

Because Europe’s productivity has been lagging behind compared to other major economies over the last 20 years, the European Commission intends to take urgent action to revive Europe’s competitiveness.

The aim of the compass is to make business easier and faster and ensure Europe’s prosperity. The compass guides the Commission’s work for the 2024-2029 period on the basis of three pillars:

• Closing the innovation gap with the EU's main competitors
• Linking decarbonisation and competitiveness
• Reducing dependencies and increasing security

Main pillars

There will be a massive push towards innovation. New measures aimed at taking the lead in strategic tech sectors – such as AI, semiconductor and quantum technologies, advanced materials, biotech, clean energy technologies, robotics, space, connected and autonomous mobility – should enable Europe to strengthen both its technological sovereignty and its competitiveness. These are all topics that (mostly) relate to call topics in the Cluster 4 programme and Digital Europe.

As well, in order to decarbonise the economy efficiently, there will be increased focus on a clean industrial deal and industrial decarbonisation, complemented with an affordable energy action plan, an electification action plan and a switch to even more reuse of resources. These topics can be found back in Horizon Europe in Clusters 4 and 5.

Finally the compass underlines both trade as a key driver of EU prosperity and the need for the EU to diversify, strengthen and ensure the resilience of its supply chains. The EC aims to sign and implement additional trade agreements as well as clean trade and investment partnerships to help secure the supply of critical raw materials, clean energy, sustainable transport fuels and clean technologies from across the world. Aditionally, there is a need for further cooperation between member states in defence by increasingly resorting to joint procurement and joint research and development, as well as by pooling resources. 

Why is this interesting for you?

The Competitiveness Compass will become a guiding document for the coming decade. This will trickle down in the upcoming Work Programmes of Horizon Europe, Digital Europe and te European Defence Fund (and their follow-up programmes).

Rather than remaining reactive, you can take the lead by taking the Compass into account when building or reviewing your own internal roadmaps. Understanding the ongoing work at the policy level is important. It's maybe that little thing that can help you to have an extra tick on the evaluaton scale. Some possibilities:

• Demonstrating alignment with policy priorities can give proposals a competitive edge
• Translating policy frameworks into concrete elements rather than simply copying policy language
• Understanding the growing emphasis on complex, interdisciplinary approaches to technology
• Preparing for more integrated funding approaches that might span from research to market

And clearly, NCP Flanders remains your ideal partner for further news on this topic, as we cover some of the main financing instruments mentioned in the Compass. 

Further reading

This article is very short and vulgarising. If you want to read up on the details and related (policy) documents.

• Excellent summary in the Explainer of the Competitiveness Compass 
• Full text of the The Competitiveness Compass (COM(2025) 30 final - Brussels, 29.1.2025)