Regions and cities are central to Europe's competitiveness, as key drivers of innovation, industry, and growth. During the plenary session of the European Committee of the Regions (CoR) on 4 March, local and regional leaders held a debate on Europe's competitiveness and the newly presented Industrial Accelerator Act with Commission Executive Vice-President Stéphane Séjourné, stressing that fully involving local and regional authorities is key to harnessing regional strengths and ensuring balanced territorial industrial development.

Regions as key actors for Europe's competitiveness

During the debate with Stéphane Séjourné, Executive Vice-President of the European Commission and Commissioner for Prosperity and Industrial Strategy, CoR members highlighted that Europe's competitiveness, and the integrity of the Single Market depend on empowering regions and cities as strategic partners in implementation. They stressed that without strong multilevel governance and a place-based approach, the EU risks widening territorial disparities instead of unlocking growth potential across all regions. Local and regional authorities manage a significant share of public investment in the EU and therefore have a decisive capacity to drive innovation, advance sustainability and strengthen Europe's strategic autonomy. CoR members highlighted that regulatory fragmentation, administrative burdens and investment uncertainties across Member States continue to hamper businesses - particularly SMEs - and weaken Europe's global competitiveness. In this context, they emphasised the need to achieve a transparent and predictable funding framework.

The debate also focused on the Industrial Accelerator Act presented by the European Commission that day, with regional leaders underlining the need to speed up permitting and support the clean transition of energy-intensive sectors, stressing that its success will depend on effective territorial implementation given the key role of regions and cities. Commissioner Séjourné reaffirmed that defending Europe's industry requires a strong "Made in Europe" strategy, simpler investment rules, and greater support for regional industrial zones at the heart of Europe's economic ecosystems. He stressed that industrial growth must go hand in hand with the Green Deal, strengthen territorial cohesion, and reduce energy dependencies in the face of rising gas prices.

A place-based competitiveness strategy

Following the debate, CoR members adopted an opinion on the European Competitiveness Fund (ECF), which is expected to be created in 2028 within the future EU long-term budget, warning that merging 14 programmes into a single instrument must not weaken previously effective tools that have successfully reached local and regional ecosystems. They also suggested the deletion of the possibility for Member States to finance ECF measures through National and Regional Partnership Programmes.

Moreover, local and regional leaders argue that competitiveness should be defined as both market-oriented and place-based in the context of the ECF. They stressed that all territories should be involved in the ECF value chain framework, emphasising that they are not only recipients of EU funding, but also key catalysts, coordinators and testing grounds for regional innovation ecosystems. These ecosystems connect universities, research centres, businesses, start-ups, SMEs and civil society actors, and are essential for translating European industrial priorities into concrete projects on the ground.

The opinion calls for the ECF to combine a global European competitiveness strategy with a strong place-based dimension, notably through renewed Smart Specialisation Strategies. It also stresses that the principle of territorial cohesion must be safeguarded, proposing the inclusion of a 'do no significant harm to cohesion' principle and ex-ante territorial impact assessments for ECF work programmes and calls. CoR members further highlighted the importance of supporting clean technologies, industrial decarbonisation and climate adaptation as core components of Europe's competitiveness.

Quotes

Kata Tüttő, President of the European Committee of the Regions: "Increasing Europe's competitiveness cannot happen if we focus EU's strategy on a few gigafactories chosen in a closed room in Brussels. Competitiveness - and economic resilience - requires a policentric strategy, supporting regions' and cities' work to mobilise the innovation capacity of our SMEs on the ground, connect business and research, create the right conditions for new ideas to flourish and grow. A top-down, centralised EU would not be a more competitive EU, it would instead be a weaker EU, unable to manage change and disruptions."

Rapporteur Pehr Granfalk (SE/EPP), Member of the Solna Municipal Council: "Greater simplification must never be synonymous with greater centralisation. And as we shape the next MFF, we must remember: the MFF is much more than a budget - it is Europe's strategic investment plan to strengthen Europe's competitiveness, and it must work across Europe, including at local and regional level."

Stéphane Séjourné, European Commissioner for Prosperity and Industrial Strategy: "Regions are at the heart of European industrial policy. They are the ones that host industrial projects, support local businesses, develop infrastructure, and train the talent our industries will need. It is also in the regions that industrial ecosystems are built: between businesses, universities, research centres, and local authorities. Our ambition is therefore a collective one: to make Europe not only a market, but also a territory of production, innovation, and industrial jobs. By strengthening our industry, we are also strengthening territorial cohesion, climate transition, and Europe's economic sovereignty."

Background

• Video and photos from the debate.

• The European Commission proposed the creation of a European Competitiveness Fund as part of the next Multiannual Financial Framework (MFF) 2028-34. It should lead to investment in strategic technologies to simplify and accelerate EU funding, and to catalyse private and public investment.

• At their informal retreat at Alden Biesen on 12 February, EU leaders agreed to boost Europe's competitiveness by deepening the European Single Market towards "one market for one Europe", advancing regulatory simplification and mobilising public and private investment including in the context of the Multiannual Financial Framework, to support strategic sectors and the energy transition, and pursuing an open but diversified trade policy.

• On 4 March, the European Commission unveiled the Industrial Accelerator Act (IAA), a landmark initiative set to drive decarbonised and resilient manufacturing throughout the EU. The CoR is currently preparing an opinion on the IAA, drafted by rapporteur Willy Borsus (BE/Renew), Member of the Municipal Council of Marche-En-Famenne.

• In addition to the one on the Competitiveness Fund, the CoR is working on 19 other opinions to assess specific aspects and regulations of the future EU long-term budget 2028-34: check the opinions' roadmap. The press releases on the other MFF-related opinions discussed at the 4-5 March Plenary session, including on the Multiannual Financial Framework post-2027, including own resources package, and the Single Market and Customs Programme, will be available online after their adoption.

Contact:

Theresa Sostmann Tel: +32475999415 [email protected]