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Speakers corner 08 October 2024

Draghi's report and von der Leyen’s proposal for new Commissioners drive the EU’s political agenda as they firmly anchor competitiveness in the EU’s decarbonisation goals


EERA's October 2024 newsletter main article

September has seen two pivotal developments in EU political life: the publication of the highly anticipated Draghi report on European competitiveness on 9 September, and the unveiling of the proposed College of Commissioners by President Ursula von der Leyen a few days later, on 17 September. These events, closely interconnected, reflect the EU’s continued institutional focus on enhancing competitiveness while remaining firmly committed to its decarbonisation objectives. Core to these ambitions, and of particular relevance to the EERA community, is a renewed focus on research and innovation (R&I), now seen as taking centre stage in driving these efforts. 

The Draghi report is currently under extensive discussion in Brussels, among EU Member States, and beyond, with its vision expected to shape policy debates for a long time. Speaking of the EU facing an "existential threat" without reform and investment, its bold proposals tackle sensitive political issues. In some cases, they directly address national sovereignty prerogatives—a contentious matter for many EU countries—as they make a compelling case for deeper EU integration in several sectors, including energy, to confront increasingly fierce global competition, especially from China and the US. 

One of the most significant and widely debated proposals is a substantial investment plan of €750-800 billion per year to counter the bloc's declining competitiveness. Such an effort, in Draghi's view, should be funded through a mix of public and private investments alongside decisive measures to reduce red tape and address policy and economic fragmentation across the board. 

Significant attention has been given from an energy standpoint to the need for focused support on clean tech manufacturing, as well as the need to act decisively on reducing energy prices and severing dependencies. Meanwhile, from an R&I perspective, the report highlights the absence of robust innovation clusters across the EU, calling for a stronger emphasis on breakthrough innovation and urgent action to strengthen the weak pipeline from innovation to commercialisation. Notably, it echoes many voices from the R&I community, to which EERA has also contributed, calling for the budget of the next research Framework Programme (FP10) to be doubled to ensure the EU’s primary role in the global race for clean tech and artificial intelligence. 

Many of the insights from this landmark 400-page report have found fertile ground in the mission letters sent by President von der Leyen to the Commissioners-designate, anticipating that its political implications will be embedded in the policy streams of the new Commission. The priorities set out in these letters, as well as in earlier programmatic documents like the Letta report on the future of the Single Market and von der Leyen’s Political Guidelines, have also shaped the proposed political architecture of the incoming College of Commissioners. 

In this context, Teresa Ribera, a Spanish socialist, has been appointed Executive Vice-President for a 'Clean, Just and Competitive Transition,' overseeing portfolios related to 'Net Zero and Clean Growth,' 'Energy and Housing,' and 'Environment.' These responsibilities have been assigned, respectively, to Dutch Commissioner Wopke Hoekstra (EPP, Netherlands), Danish Commissioner Dan Jørgensen (S&D, Denmark), and Swedish Commissioner Jessika Roswall (EPP, Sweden), reflecting a careful balancing act across the political spectrum to acknowledge the often divisive nature of climate and energy policies. A notable shift in the proposed College of Commissioners is the appointment of Ekaterina Zaharieva (EPP, Bulgaria) as Commissioner for 'Research, Innovation, and Startups.' This portfolio, which now most notably excludes education, signals a stronger political commitment from the incoming Commission to scale up innovative technologies and bring them to market, which can be seen as a direct translation of the recommendations contained in the Draghi report in this respect. 

Against this backdrop, EERA has been closely following these political developments and generally views the synergies between the Draghi report’s recommendations and the new Commission’s strategic focus positively, particularly regarding the emphasis on R&I’s role in boosting competitiveness while maintaining climate goals— a political commitment that was not guaranteed given the uncertainty surrounding recent political dynamics in the EU and its Member States. However, concerns remain in the blueprint for the new EU institutional term, particularly regarding the insufficient attention given to energy demand reduction and efficiency policies, as well as the need for a more holistic approach to competitiveness that, in EERA's view, must always align with the triple bottom line of sustainability—economic, environmental, and social—with the latter two dimensions not receiving the focus and urgent consideration they require. 

With several political hurdles still to be overcome before the new College of Commissioners can take office, as the designated candidates will need to undergo parliamentary hearings before being confirmed in their roles, EERA will continue to bring the voice of the low-carbon energy R&I community into the EU political debates shaping this new institutional term. A prime opportunity for this engagement will be the forthcoming EERA High-Level Policy Conference, taking place on 16 October in Brussels, which will provide a privileged platform for dialogue on these critical issues, fostering collaboration among key stakeholders and facilitating a constructive exchange of ideas to advance the EU’s clean energy transition agenda against the backdrop of this evolving EU political and institutional context.