Policy Actions for a Competitive and Resilient Europe

This year, nearly half a billion eligible voters in the European Union will head to the polls in June to elect new members of the European Parliament, after which a new European Commission will be appointed. The start of a new legislative cycle brings immense possibilities to drive meaningful change and set Europe on the path to future economic prosperity. Europe’s twin green and digital transition ambitions impact sectors old and new. To reach its goals of harnessing the power of digital technologies and accelerating toward a more sustainable growth model, the EU needs a true manufacturing moonshot. At its core is a thriving semiconductor industry.

Intel in Europe 

For 30 years and counting, Intel has been creating high-quality jobs, investing in R&D and supporting education programs in Europe, all while expanding the boundaries of technology. This decade alone, Intel plans massive and unprecedented investments in the EU of more than €50 billion, creating thousands of jobs across the continent.

To realize the full potential of its industrial ambitions, we identified four areas the EU needs to prioritize over the next five years: boosting competitiveness, driving sustainable and responsible growth, fostering innovation for a vibrant tech ecosystem, and promoting global collaboration. For each of these priority areas, we defined concrete recommendations and summarized them in our new white paper: Policy Actions for a Competitive and Resilient Europe. They all point to an overarching goal: creating a predictable and secure business environment that boosts innovation, decarbonizes industries, creates jobs and attracts investments.

Fostering Innovation and Driving Growth 

Creating the conditions to enable cutting-edge innovation is imperative for securing our sustainable future. But there is no silver bullet. We need to find a smart policy mix reconciling climate goals with industrial ambitions. The puzzle of making Europe’s business environment more resilient, innovative and, ultimately, competitive, comprises many pieces. The starting point: keeping industrial costs in check.

The EU must ensure that businesses and jobs are not disadvantaged by high prices and the cost of navigating increasingly complex regulatory frameworks. To mitigate the latter, we need a policy coherence assessment of the laws governing the single market — and how these affect the EU’s competitiveness. Next, the European innovation ecosystem desperately needs better access to financing. Eliminating barriers to capital flows by establishing a genuine European Venture Capital Market would turbocharge European businesses’ capacities to innovate, especially for SMEs. European policymakers must also address the ever-widening skills gap. Coordination programs for re-skilling and up-skilling workers to the needs of the digital economy are paramount for turning all the large investments into goods and services that benefit society at large.

Promoting Global Cooperation 

But durable prosperity cannot be achieved in isolation. Yes, industrial policy is back in vogue across the globe, but that cannot mean that we turn inward and sideline international cooperation. Today’s supply chains are more delocalized than ever. This is particularly true in the semiconductor industry, leaving our sector exposed to geopolitical shocks. Building supply chain resilience and protecting national economic security is a feat of smart and constructive engagement with multiple international partners.

Economic security is underlined by international security. This is why Europe’s green industrial deal must have an assertive, yet open and mutually beneficial trade policy at its core. A policy that is based on as close a relationship with the U.S. as possible. A policy that is at the same time rooted in the principle of multilateralism in reaching out to other like-minded international partners. Taking a coordinated approach to controlling export and investment flows is vital to avoid harming our competitiveness rather than strengthening it.

Public and Private 

Public-private partnerships (PPPs) are necessary for filling gaps the market or the government alone cannot fill. Trillions of euros worth of investments are needed to achieve the goals of the twin green and digital transition. PPPs are already proving to be important vehicles for investments into critical areas like industrial decarbonization, grid modernization or increasing clean tech manufacturing capacity.

At the same time, the public and private sectors must work hand-in-glove when it comes to developing skills of the future, channeling adequate levels of R&D funding or promoting international standardization. International public-private cooperation on artificial intelligence and cybersecurity standards is especially needed for developing innovation-friendly, yet trustworthy and effective solutions.

New Cycle, New Opportunities

As the EU embarks on a new legislative cycle, there is an opportunity to set policies that will drive Europe’s competitiveness, while delivering on global climate targets. With an enabling business environment, international cooperation and effective public-private partnerships, a robust green industrial deal can lay the foundation for Europe’s long-term sustainable growth.

Future European competitiveness will be built on jobs and investments that are green and digital. Many of these jobs and investments will, in one way or another, be enabled by the semiconductor industry.

Getting the necessary policy mix right will be no small feat, but Intel is ready to play its part in helping Europe get there.

Read Intel’s white paper with recommended policy actions for a competitive and resilient Europe.