In response to intensifying global competition and shifting geopolitical dynamics, the European Committee of the Regions (CoR) has called for immediate action to strengthen EU competitiveness. This appeal came during a debate with Enrico Letta, President of the Jacques Delors Institute and former Prime Minister of Italy, on a place-based approach to competitiveness. The CoR also adopted a resolution on the Competitiveness Compass, underlining the urgent need for stronger regional involvement and less centralised decision-making.
Local and regional leaders welcomed the key priorities outlined in the European Commission’s Competitiveness Compass but warned against overly centralised decision-making that excludes local and regional authorities. They stressed that promoting competitiveness must go hand-in-hand with reinforcing territorial, economic, and social cohesion—elements that are essential to the functioning and further development of the Single Market.
Pehr Granfalk, Member of Solna Municipal Council, stated: “Growth and competitiveness start locally – in our regions and cities where ideas are born, businesses grow, and innovation takes root. Yet too often, this potential is held back by decisions made far from local realities. We speak of Europe's competitiveness, but forget it is forged on the ground – by entrepreneurs, small businesses, educators, and investors in our communities. When Brussels acts without listening to the regions, we lose momentum. If Europe is serious about strengthening its global position, it must engage those closest to where growth begins. The Committee of the Regions has a vital role to play. We can identify barriers to local innovation and offer concrete solutions. Through our members, we can help build strong industrial clusters – especially in strategic sectors like technology and defence. A truly competitive Union must be built from the bottom up, with policies that reflect local needs and diversity across Europe.”
Alberto Cirio, President of the Piedmont Region, reinforced this by saying: “I am convinced that competitiveness and territorial, economic, and social cohesion are interconnected and constitute essential and indispensable elements for the functioning and completion of the Single Market. In this context, the role of regions is central. It is at the territorial level that European strategies are transformed into concrete realities. We must strengthen multilevel governance and ensure that regions have the resources and tools needed to implement the actions outlined in the EU Competitiveness Compass.”
William Elofsson, Member of Gävle Municipal Council, added: “To strengthen the EU’s competitiveness, we need a truly place-based strategy where cities and regions are not mere bystanders but active players. Local leadership is key to driving innovation, investment, and the jobs of the future. In my work on the Clean Industrial Deal, I will work to highlight that local leadership is a key enabler for strengthening the EU’s competitiveness while we continue to lead the way in the green transition.”
Mark Speich, State Secretary for Federal, European and International Affairs and Media, with political accountability to the North Rhine-Westphalia State Parliament, told Letta: “I would particularly like to thank you for explicitly emphasising the involvement of the regions in your report. You write that the CoR’s contribution ensures that the legislative process is guided by a comprehensive and practice-oriented analysis. At the sub-national level, we do indeed know best where there are concrete problems with the implementation of the internal market. We would like to contribute our experience for the benefit of the EU.”
Carlos Mazón, President of the Region of Valencia, remarked: “We have challenges in terms of competitiveness and with the Compass we can deal with them. We can guarantee the effectiveness of productivity only if it has regional and local approaches. Regarding administrative simplification, the EU is usually a synonym of excessive bureaucracy and burdens. Thus, simplification has to be a fundamental pillar. We are against excessive regulation, burdens, and useless tariffs.”
Markku Markkula, President of Helsinki Region, emphasised the need to intensify efforts to develop place-based innovation ecosystems, as well as further embrace digital technologies to increase competitiveness.
Emil Boc, Mayor of Cluj-Napoca said: “We need new resources, and the Union of Savings and Investments is offering a solution."
During the discussion, CoR members expressed concern that current funding for competitiveness may fall significantly short of the €750–800 billion per year identified in the Draghi report. They called for greater mobilisation of private investment and renewed debate on issuing common EU debt to support joint European projects. High regulatory burdens were also cited as a major obstacle for businesses, with members urging the simplification of rules—without compromising social, environmental, and economic standards.
The importance of EU funding to support cross-border projects connecting regional innovation hubs was reiterated. Leaders warned against protectionist tendencies among Member States that risk fragmenting the Single Market. Cutting red tape and simplifying cross-border business operations will be crucial for SMEs, while investment in education and skills development—led by local and regional authorities—will help ensure Europe’s workforce is future-ready.