The European Commission is once again focused on boosting Europe’s competitiveness, this time by integrating the bloc’s capital markets.
The EU executive published a range of measures on March 19, aimed at unlocking the €11.6 trillion ($12.8 trillion) currently sitting idle in European bank accounts.
This strategy includes offering tax breaks to encourage investment in European assets, adjusting rules for banks’ capital requirements, risk management and liquidity, as well as centralising market oversight, akin to the US Securities and Exchange Commission.
The proposals come at a time when Europe faces stagnating economic growth, trailing behind the US and China.
So, how can the EU boost its competitiveness and drive business growth? And what actions can European businesses take to close the gap and improve economic performance?
Last year, the eurozone’s economy grew by a modest 0.7 per cent and, over the past two decades, US labour productivity has grown more than twice as fast as Europe’s, according to the European Central Bank. This has led some policymakers, such as the ECB’s Isabel Schnabel, to warn that the bloc faces a “competitiveness crisis”.
The ECB is concerned that weak productivity could keep inflation elevated by driving up labour costs for eurozone companies, as it continues its cycle of cutting interest rates from recent highs.
One policy aimed at addressing this issue is the European Commission’s “competitiveness compass”, which seeks to streamline regulations and reduce administrative burdens on businesses.
The plan, announced by Commission President Ursula von der Leyen last November, and later leaked, includes slashing reporting requirements and simplifying sustainability rules – a response to EU business groups and national governments lobbying for a more business-friendly regulatory environment.
Critics say the EU is dealing with an overload of new regulations, especially in the green and digital sectors. However, there is a risk that deregulation could undermine Europe’s long-term competitiveness. In my view, its relatively strict rules provide an advantage.
Consider AI, where Europe’s regulations, through the Artificial Intelligence Act, offer clear benefits for both consumers and businesses. The law, passed in 2023, is considered the most comprehensive regulatory framework for AI globally. It includes provisions that ban specific applications, such as scraping the internet to build facial recognition databases, which helps raise trust in AI by outlawing bad practices.
For businesses, these regulations provide much-needed certainty. In the US, there is no comprehensive, nationwide legal framework specifically governing AI. As a result of this ambiguity, companies may be hesitant to fully implement AI technology.
The same applies to sustainability. The EU executive plans to simplify regulations, particularly by reducing reporting requirements, at a time when US President Donald Trump is pushing a deregulation agenda.
While the EU’s ambitious green goals, such as strict car emissions standards, have led to increased competition from cheaper foreign alternatives, especially from China, the bloc’s Green Deal climate law has provided businesses with a clear path to meet decarbonisation targets. I believe this clarity gives European companies a competitive edge, allowing them to plan and innovate with confidence.
The EU must integrate its financial markets – harmonising rules and reporting standards and removing regulatory barriers
Arturo Bris,
IMD
In contrast, Mr Trump has rolled back environmental protections in the US since taking office.
However, one of Europe’s biggest challenges is its fragmented financial markets. As former ECB chief and former Italian prime minister Mario Draghi highlighted in a report published last year, this fragmentation hinders competitiveness.
Capital flows more freely to the US because of its unified financial system and consistent regulatory frameworks across states, making it easier for businesses to raise capital and expand operations. In contrast, European businesses face varying regulations when operating across borders. While there are overarching EU rules, national regulations in areas such as taxation, accounting standards and financial oversight still differ.
To tackle this, I believe the EU must integrate its financial markets – harmonising rules and reporting standards and removing regulatory barriers, like differing national rules on capital requirements, tax regulations and securities laws.
Aligning accounting standards, like IFRS, across all EU member states and sectors would ensure consistent financial reporting, creating a more efficient and attractive environment for investors and businesses.
This would simplify capital raising, financial reporting and regulatory compliance – ultimately reducing costs and complexity for companies operating across a number of EU countries.
To succeed in this endeavour, the European Commission will need to strike a balance between centralised supervision and the interests of member states that may be wary of handing over regulatory control to the EU.
Another potential, though controversial, tool for boosting Europe’s competitiveness is selective protectionism. The EU is considering a “Buy European” procurement plan that would allow governments to exclude foreign bidders in critical sectors such as defence, energy and technology.
Similar to Mr Trump’s “America First” policy, this plan aims to protect European industries from cheaper foreign competition, particularly from China.
While protectionism carries risks, especially in terms of breaching international trade agreements, it may be necessary for Europe to protect its industries from unfair competition.
The EU has already shown its commitment to defending its economic interests, as seen in its response to US tariffs on steel and aluminium, through retaliatory tariffs on US products such as bourbon and motorcycles. Protectionism does not need to come in the form of tariffs, however. Instead, Europe can limit industry access to domestic players, as China does with its media, insurance and other sectors.
By focusing on supporting European companies in this way, the EU can help its industries stay competitive.
Europe’s sluggish economic performance compared to the US and China is concerning but it is not insurmountable. With policies such as integrating its financial markets, simplifying regulations and ensuring a unified framework for sustainability and AI, the EU can close its competitiveness gap.
Businesses must also rise to the occasion by committing to the green transition. Moreover, it is essential for companies to collaborate closely with governments and regulators to support EU competitiveness and not block regulatory progress.
How the UAE gratuity payment is calculated now
Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.
The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.
1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):
a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33
b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.
2. For those who have worked more than five years
c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.
Note: The maximum figure cannot exceed two years total salary figure.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
It's Monty Python's Crashing Rocket Circus
To the theme tune of the famous zany British comedy TV show, SpaceX has shown exactly what can go wrong when you try to land a rocket.
The two minute video posted on YouTube is a compilation of crashes and explosion as the company, created by billionaire Elon Musk, refined the technique of reusable space flight.
SpaceX is able to land its rockets on land once they have completed the first stage of their mission, and is able to resuse them multiple times - a first for space flight.
But as the video, How Not to Land an Orbital Rocket Booster, demonstrates, it was a case if you fail, try and try again.
How to vote
Canadians living in the UAE can register to vote online and be added to the International Register of Electors.
They'll then be sent a special ballot voting kit by mail either to their address, the Consulate General of Canada to the UAE in Dubai or The Embassy of Canada in Abu Dhabi
Registered voters mark the ballot with their choice and must send it back by 6pm Eastern time on October 21 (2am next Friday)
Jeff Buckley: From Hallelujah To The Last Goodbye
By Dave Lory with Jim Irvin
ICC Women's T20 World Cup Asia Qualifier 2025, Thailand
UAE fixtures
May 9, v Malaysia
May 10, v Qatar
May 13, v Malaysia
May 15, v Qatar
May 18 and 19, semi-finals
May 20, final
Tree of Hell
Starring: Raed Zeno, Hadi Awada, Dr Mohammad Abdalla
Director: Raed Zeno
Rating: 4/5
Key recommendations
- Fewer criminals put behind bars and more to serve sentences in the community, with short sentences scrapped and many inmates released earlier.
- Greater use of curfews and exclusion zones to deliver tougher supervision than ever on criminals.
- Explore wider powers for judges to punish offenders by blocking them from attending football matches, banning them from driving or travelling abroad through an expansion of ‘ancillary orders’.
- More Intensive Supervision Courts to tackle the root causes of crime such as alcohol and drug abuse – forcing repeat offenders to take part in tough treatment programmes or face prison.
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Killing of Qassem Suleimani
Meydan race card
6.30pm: Baniyas (PA) Group 2 Dh125,000 (Dirt) 1,400m
7.05pm: Maiden (TB) Dh165,000 (D) 1,200m
7.40pm: Maiden (TB) Dh165,000 (D) 1,400m
8.15pm: Handicap (TB) Dh170,000 (D) 1,900m
8.50pm: Rated Conditions (TB) Dh240,000 (D) 1,600m
9.25pm: Handicap (TB) Dh175,000 (D)1,200m
10pm: Handicap (TB) Dh165,000 (D) 1,400m
Formula%204%20Italian%20Championship%202023%20calendar
%3Cp%3EApril%2021-23%3A%20Imola%3Cbr%3EMay%205-7%3A%20Misano%3Cbr%3EMay%2026-28%3A%20SPA-Francorchamps%3Cbr%3EJune%2023-25%3A%20Monza%3Cbr%3EJuly%2021-23%3A%20Paul%20Ricard%3Cbr%3ESept%2029-Oct%201%3A%20Mugello%3Cbr%3EOct%2013-15%3A%20Vallelunga%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
THE BIO
Ambition: To create awareness among young about people with disabilities and make the world a more inclusive place
Job Title: Human resources administrator, Expo 2020 Dubai
First jobs: Co-ordinator with Magrudy Enterprises; HR coordinator at Jumeirah Group
Entrepreneur: Started his own graphic design business
Favourite singer: Avril Lavigne
Favourite travel destination: Germany and Saudi Arabia
Family: Six sisters
Mohammed bin Zayed Majlis
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
ETFs explained
Exhchange traded funds are bought and sold like shares, but operate as index-tracking funds, passively following their chosen indices, such as the S&P 500, FTSE 100 and the FTSE All World, plus a vast range of smaller exchanges and commodities, such as gold, silver, copper sugar, coffee and oil.
ETFs have zero upfront fees and annual charges as low as 0.07 per cent a year, which means you get to keep more of your returns, as actively managed funds can charge as much as 1.5 per cent a year.
There are thousands to choose from, with the five biggest providers BlackRock’s iShares range, Vanguard, State Street Global Advisors SPDR ETFs, Deutsche Bank AWM X-trackers and Invesco PowerShares.
Britain's travel restrictions
- A negative test 2 days before flying
- Complete passenger locator form
- Book a post-arrival PCR test
- Double-vaccinated must self-isolate
- 11 countries on red list quarantine
TUESDAY'S ORDER OF PLAY
Centre Court
Starting at 2pm:
Malin Cilic (CRO) v Benoit Paire (FRA) [8]
Not before 4pm:
Dan Evans (GBR) v Fabio Fogini (ITA) [4]
Not before 7pm:
Pablo Carreno Busta (SPA) v Stefanos Tsitsipas (GRE) [2]
Roberto Bautista Agut (SPA) [5] v Jan-Lennard Struff (GER)
Court One
Starting at 2pm
Prajnesh Gunneswaran (IND) v Dennis Novak (AUT)
Joao Sousa (POR) v Filip Krajinovic (SRB)
Not before 5pm:
Rajeev Ram (USA) and Joe Salisbury (GBR) [1] v Marin Cilic v Novak Djokovic (SRB)
Nikoloz Basilashvili v Ricardas Berankis (LTU)
Book%20Details
%3Cp%3E%3Cem%3EThree%20Centuries%20of%20Travel%20Writing%20by%20Muslim%20Women%3C%2Fem%3E%3Cbr%3E%3Cstrong%3EEditors%3A%20%3C%2Fstrong%3ESiobhan%20Lambert-Hurley%2C%20Daniel%20Majchrowicz%2C%20Sunil%20Sharma%3Cbr%3E%3Cstrong%3EPublisher%3A%20%3C%2Fstrong%3EIndiana%20University%20Press%3B%20532%20pages%3Cbr%3E%3C%2Fp%3E%0A
Best Foreign Language Film nominees
Capernaum (Lebanon)
Cold War (Poland)
Never Look Away (Germany)
Roma (Mexico)
Shoplifters (Japan)
