"Our businesses, our territories, are navigating 'the perfect storm' that is hampering competitiveness: a storm fueled by protectionism, shortages of critical raw materials, and fears of a looming recession," said Sari Rautio, President of the EPP Group in the European Committee of the Regions (EPP-CoR), during a panel debate at the EPP Congress in Valencia.
Speaking during the session titled "Enhancing Europe's Competitiveness: Securing Economic Growth and Creating Quality Jobs," Rautio stressed the urgent need to move beyond the current situation of legislative over-implementation towards solutions that truly work for businesses and communities – but only if we dare to "Think Small First."
Highlighting the diversity of European regions in terms of economic profiles, demography, and settlement patterns (urban, semi-urban, and rural areas), Rautio pointed out that territories face very different challenges: "Infrastructure gaps, limited access to investment capital, and shortages of skilled labor are everyday realities across many regions. There is no one-size-fits-all solution."
She noted that the most competitive and growth-friendly regions – many of which are led by EPP authorities – have succeeded by facilitating smart specialisation strategies and integrated value chains. However, success also brings vulnerabilities: "Regions that are deeply embedded in global value chains are especially exposed to high energy costs and international shocks."
Rautio reminded the audience that local and regional authorities are fundamental economic actors, representing half of public employment, one-third of public spending, and two-thirds of public investment in Europe. Furthemore, the EPP-CoR President outlined the long-standing priorities of her Group to strengthen European competitiveness:
- Better access to finance for SMEs
- SME-friendly procurement and investment frameworks
- Fighting unfair competition from outside the EU
- Enabling Regional Hubs to connect SMEs across the EU
Rautio called for the introduction of a common European strategy for competitiveness that embeds feedback mechanisms and grassroots impact assessments, ensuring that policies are tested and shaped by those who live and work with their consequences.
Rautio shared examples of local and regional governments' own actions, for example on access to finance, the case of municipal banks in Sweden, local entrepreneurship supports, StartUp Braga, that is an innovation hub designed to support entrepreneurial projects of great potential. As well as scaling defence, security and dual-use innovations. Coordinated by the City of Riihimäki, the DEFINE programme brings together the Finnish Defence Forces, the country’s leading companies from the industry, research institutes, and startups.
In her concluding remarks Rautio spoke on Cohesion Policy stating that cohesion funds are not charity and the funds must not be used to address crisis.
Joining Sari Rautio in the debate were MEP Jörgen Warborn (Moderates, Sweden), President of SME Europe, and member of INTA, ITRE, and JURI committees in the European Parliament; MEP Lídia Pereira, President of YEPP (Youth of the European People's Party) and MEP Dennis Radtke, President of the European Union of Christian Democratic Workers (EUCDW). The panel was moderated by Patricia Betancort.