The Draghi report originally identified three imperatives for the EU to boost its competitiveness: 

1. Closing the innovation gap
2. A joint strategy for decarbonisation and competitiveness
3. Increasing security and reducing excessive dependencies 

The Competitiveness Compass sets out an approach and measures to translate these imperatives into reality. 

Closing the innovation gap

The Compass spells out how the European Union will boost innovation by:

• creating a friendly environment for young companies to start and expand, with a dedicated EU Start-up and Scale-up Strategy
• helping big companies adopt new technologies such as artificial intelligence (AI) and robotics, thanks to an “Apply AI” initiative
• making it easier for companies to operate across the EU by simplifying rules and laws, with a proposal for a 28th legal regime that will guarantee one set of rules across the EU
• supporting the development of new technologies, with action plans for advanced materials, quantum, biotech, robotics and space technologies

A joint roadmap for decarbonisation and competitiveness

The Compass sets out how we can facilitate access to affordable energy by:

• putting forward the Clean Industrial Deal, to help reduce carbon emissions, especially for energy intensive companies, and facilitate their transition to low carbon technologies  
• presenting tailor-made action plans for energy intensive sectors, such as steel, metals, and chemicals, which are the most vulnerable at this phase of the transition
• developing an Affordable Energy Action Plan to help bring down energy prices and costs 

Reducing dependencies and increasing resilience and security

The EU already has the largest and fastest growing network of trade agreements in the world, covering 76 countries.

The Compass identifies how we can further diversify and strengthen our supply chains by:  

• developing a new range of Clean Trade and Investment Partnerships to help secure supply of raw materials, clean energy, sustainable transport fuels, and clean tech from across the world  
• reviewing the Public Procurement rules to allow for the introduction of a European preference in public procurement for critical sectors and technologies 

Five horizontal enablers for competitiveness 

To complement these three pillars, the Competitiveness Compass introduces five horizontal enablers to increase our competitiveness across all sectors:

1. Simplification
2. Lowering barriers to the Single Market
3. Financing competitiveness
4. Promoting skills and quality jobs
5. Better coordination of policies at EU and national level 

The Compass already recognises the Vision on agriculture and food the strategic document for the agri-food sector in the mandate 2024-2029.

Related legislation:

Communication COM/2025/30 A Competitiveness Compass for the EU