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EU to Bet on AI, Advanced Research and Clean Tech in Bid to Compete

Jan 23, 2025 - financialpost.com
The European Union plans to establish an advanced research project agency, modeled after US entities, to invest in strategic technologies and enhance competitiveness. This initiative is part of a broader strategy to boost the EU's economic standing, which includes building supercomputing infrastructure for AI, cutting regulations, improving funding access, and lowering energy costs. The strategy, known as the Competitiveness Compass, aims to address challenges such as innovation gaps, transitioning to a climate-neutral economy, and securing supply chains. The EU will also propose a new state aid framework and a European preference in public procurement for critical sectors.

To tackle high energy prices, the European Commission will present plans to deepen market integration and promote long-term power purchase agreements. The EU intends to simplify regulations, benefiting mid-sized firms, and mitigate supply chain dependencies through joint purchases of critical raw materials. Despite these efforts, the EU faces significant investment challenges, needing up to €800 billion annually through 2030 to maintain competitiveness. The strategy will be detailed in upcoming proposals and legislation, with initiatives rolling out over the next two years.

Key takeaways:

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  • The European Union plans to establish an advanced research project agency to invest in strategic technologies, aiming to boost competitiveness.
  • The EU will propose building new supercomputing infrastructure for AI and introduce a competitiveness fund inspired by US models.
  • Initiatives will focus on closing the innovation gap, transitioning to a climate-neutral economy, and addressing security challenges.
  • The EU aims to simplify regulations, cut reporting obligations by 25%, and propose joint purchase platforms for critical raw materials.
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