The proposal to launch a new European Competitiveness Deal (ECD), intended as a policy and regulatory initiative aimed at bridging the growth, productivity, and innovation gaps between the European Union and its international partners and competitors, was first outlined by European leaders at the Special European Council meeting on 17 and 18 April 2024. Since then, it has gained traction, being incorporated into the June EU strategic agenda for 2024-2029 and discussed in subsequent European Council meetings.

The momentum for the initiative has been further strengthened by the discussions surrounding competitiveness ignited by the publication of the two landmark reports "Much More than a Market" by Enrico Letta and "The Future of European Competitiveness" by Mario Draghi and, with the Hungarian Presidency of the European Council also prioritising the launch of the new ECD as a cornerstone of its semester action, this political impetus is now likely to crystallise next week in the so-called ‘Budapest Declaration on the New European Competitiveness Deal’ at the EU leaders’ informal meeting in the Hungarian capital on 8 November 2024.

The leaked draft of this declaration, spanning ten pages, outlines strategic initiatives and collaborative policies designed to address shared economic challenges across the Union. Notably, it includes a target for research and innovation set at 4% of EU GDP by 2030, which EU countries would be urged to achieve. The leaked draft also emphasises the compelling need for increased investments and improved integration of capital, telecoms, and energy markets, and proposes introducing a “fifth freedom” to enhance the mobility of researchers, knowledge, and innovation, which can be clearly seen as a direct reference to the insights presented in the aforementioned Letta and Draghi reports. Confirmation of this direction of travel for the Declaration could also be found in the written responses from Commissioner-Designate for Startups, Research, and Innovation, Ekaterina Zaharieva, to questions from MEPs regarding new R&I initiatives.

Furthermore, the leaked document invites the Commission to present a European Tech Strategy by mid-2025, aimed at bolstering the EU’s technological capabilities, accelerating digitalisation across industries, and fostering the development of innovative technologies—a proposal that adds to the already extensive list of new tech initiatives and plans currently in development.