Creating an environment for small businesses to thrive in is of particular concern
At the beginning of October 2023, EU leaders resolved to commit to enhancing the Union’s competitiveness in order to reduce reliance on other countries. The initiative aims to put the European Union at the forefront of development in digital and green tech. It comes after the Covid pandemic and the war in Ukraine have tested the Union and its ability to withstand changes in the face of crises.
Apart from the technological sector, the EU is also looking to bolster its single market when it comes to raw materials and critical medicines. Skills and investments will also be boosted to strengthen the Union as a powerhouse in commerce and industry. By the end of the year, all member states should determine whether they have any risks associated with the use of AI, semiconductors, biotechnology or quantum technology.
The extent to which European markets ought to remain open to foreign companies remains a debatable topic, and while countries like the Netherlands and Sweden promote open markets, France is more concerned about protecting domestic production.
The overview
The European Union is the third largest economy in the world after the United States and China, as well as the third in purchasing power parity, following China and the US. The common market lets companies trade seamlessly on the continent. The fact that there are so many economic and cultural differences between the countries makes it all the more remarkable that the system is working. After the creation of the European Union, barriers were removed, and all economies were interlinked and benefited from each other’s assistance.
The larger EU economies are located in the west and north of the continent, while many countries in the east and south are still in the development stages but are nonetheless rapidly approaching their peers.
Collaborative economy
The collaborative or sharing economy will enable the bloc to focus on bringing greater product choice to consumers, all for a lower price. Start-ups and existing companies will also benefit from the growth that comes with better opportunities and innovative measures. The challenge comes from the laws and regulations already in place. Some nations encourage this kind of economic activity, while in other areas, restrictions are still in place.
Since collaborative efforts evolve over time and are entirely dynamic in nature, they must be objectively monitored over a more extended period to determine how the prices and trends develop. Small and medium-sized companies are the ones that require additional help. Since most of these businesses generally come under the umbrella of start-ups and are frequently the creation of young entrepreneurs, they face unique challenges and obstacles on their road to success.
Mobility
Research reveals that whether a company can achieve mobility or not is very important for its overall development. There are many regulations currently in place that can hinder the process, and while their original purpose was to protect consumers, many of them now create problems for the business sector, particularly when it comes to the ability of enterprises to move beyond the borders of their country. Although the service sector accounts for approximately two-thirds of the economy of the European Union, supplying services across the borders remains underdeveloped. Those working in the fields of architecture, accounting or engineering face challenges when seeking to offer their services to another country in the bloc.
Legislative action is needed to start a regulation reform and address the barriers that restrict businesses in the European Union.
Economic security
Creating policies that aim to protect the economy and make it more resilient must begin with risk assessment. The current technological environment, as well as the geopolitical considerations, have created an ecosystem that is quite different from anything that came before it. Security concerns remain relevant as well. Consequently, the EU needs to develop an approach that’s comprehensive and which can identify possible issues. Some of the concerns that ought to be addressed are:
- Supply chains and their resilience in the face of threats, including the issue of energy security
- Cyber security threats and any problems that could affect infrastructure. More information about data breaches can be found at https://www.databreachclaims.org.uk
- Technology leakage can lead to infringements on product information, cryptographic keys and blueprints
- The possibility of economic coercion .
One of the most essential methods to solve these issues is the promotion of competitive approaches that include investing and fostering skills. Improving the Union’s research performance in both the industry sector and tech will also help considerably. Economic security risks should be mitigated as well, through previously implemented policies and tools, as well as the development of new ones. Since new areas of concern appear all the time as technology develops, solutions that address them must be implemented as well.
Working with a broad range of partners will strengthen economic security as well. Partnerships work by helping finalise trade partnerships in a satisfactory way for all parties involved. The agreements could also be made to be far more elaborate, meaning that the rules will be reinforced as well. Through the resources offered by partnerships, it also becomes simpler to support sustainable development and learn from other institutions, creating overall systems to help the economy thrive.
The retail sector
Productivity helps the markets develop and evolve. That’s precisely why its relative stagnation in the retail sector has been a cause for concern for many operating in the industry. Similarly to other areas, there’s a series of restrictions that inhibit further growth. The size and location of the stores, as well as the requirements that dictate that numerous permits are necessary are just a few of them. Local authorities should determine what are the most critical inefficiencies that should be discussed so that the modernisation of the retail sector can first begin within national legal frameworks before moving further.
This step will later allow retailers to expand and introduce outlets across the European Union. When the first retailers enter overseas markets, it becomes easier for others to follow in their footsteps as well. After local authorities have implemented all the helpful measures they could, it’s time for EU lawmakers to find ways to support and protect the measures in order to ensure they meet all their objectives.
The European Union is looking to create a more secure environment for the countries that are part of the bloc, as well as support their ability to be more self-reliant. Still, this endeavour will take no small amount of time and effort, as well as the ability to address possible issues across several areas.
