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.
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2018 ICC World Twenty20 Asian Western Sub Regional Qualifier
Event info: The tournament in Kuwait is the first phase of the qualifying process for sides from Asia for the 2020 World T20 in Australia. The UAE must finish within the top three teams out of the six at the competition to advance to the Asia regional finals. Success at regional finals would mean progression to the World T20 Qualifier.
Teams: UAE, Bahrain, Saudi Arabia, Kuwait, Maldives, Qatar
Friday fixtures: 9.30am (UAE time) - Kuwait v Maldives, Qatar v UAE; 3pm - Saudi Arabia v Bahrain
UAE squad
Esha Oza (captain), Al Maseera Jahangir, Emily Thomas, Heena Hotchandani, Indhuja Nandakumar, Katie Thompson, Lavanya Keny, Mehak Thakur, Michelle Botha, Rinitha Rajith, Samaira Dharnidharka, Siya Gokhale, Sashikala Silva, Suraksha Kotte, Theertha Satish (wicketkeeper) Udeni Kuruppuarachchige, Vaishnave Mahesh.
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – First ODI
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I
UAE squad
Ali Kashief, Salem Rashid, Khalifa Al Hammadi, Khalfan Mubarak, Ali Mabkhout, Omar Abdelrahman, Mohammed Al Attas (Al Jazira), Mohmmed Al Shamsi, Hamdan Al Kamali, Mohammad Barghash, Khalil Al Hammadi (Al Wahda), Khalid Eisa, Mohammed Shakir, Ahmed Barman, Bandar Al Ahbabi (Al Ain), Adel Al Hosani, Al Hassan Saleh, Majid Suroor (Sharjah), Waleed Abbas, Ismail Al Hammadi, Ahmed Khalil (Shabab Al Ahli Dubai) Habib Fardan, Tariq Ahmed, Mohammed Al Akbari (Al Nasr), Ali Saleh, Ali Salmeen (Al Wasl), Hassan Al Mahrami (Baniyas)
Read more from Aya Iskandarani
UAE currency: the story behind the money in your pockets
One-off T20 International: UAE v Australia
When: Monday, October 22, 2pm start
Where: Abu Dhabi Cricket, Oval 1
Tickets: Admission is free
Australia squad: Aaron Finch (captain), Mitch Marsh, Alex Carey, Ashton Agar, Nathan Coulter-Nile, Chris Lynn, Nathan Lyon, Glenn Maxwell, Ben McDermott, Darcy Short, Billy Stanlake, Mitchell Starc, Andrew Tye, Adam Zampa, Peter Siddle
The Porpoise
By Mark Haddon
(Penguin Random House)
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
NYBL PROFILE
Company name: Nybl
Date started: November 2018
Founder: Noor Alnahhas, Michael LeTan, Hafsa Yazdni, Sufyaan Abdul Haseeb, Waleed Rifaat, Mohammed Shono
Based: Dubai, UAE
Sector: Software Technology / Artificial Intelligence
Initial investment: $500,000
Funding round: Series B (raising $5m)
Partners/Incubators: Dubai Future Accelerators Cohort 4, Dubai Future Accelerators Cohort 6, AI Venture Labs Cohort 1, Microsoft Scale-up
COMPANY%20PROFILE%3A
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Envision%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2017%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3EKarthik%20Mahadevan%20and%20Karthik%20Kannan%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20The%20Netherlands%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20Technology%2FAssistive%20Technology%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%3C%2Fstrong%3E%20%241.5%20million%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2020%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20Seed%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%204impact%2C%20ABN%20Amro%2C%20Impact%20Ventures%20and%20group%20of%20angels%3C%2Fp%3E%0A
MATCH INFO
Group B
Bayern Munich v Tottenham, midnight (Thursday)
Ads on social media can 'normalise' drugs
A UK report on youth social media habits commissioned by advocacy group Volteface found a quarter of young people were exposed to illegal drug dealers on social media.
The poll of 2,006 people aged 16-24 assessed their exposure to drug dealers online in a nationally representative survey.
Of those admitting to seeing drugs for sale online, 56 per cent saw them advertised on Snapchat, 55 per cent on Instagram and 47 per cent on Facebook.
Cannabis was the drug most pushed by online dealers, with 63 per cent of survey respondents claiming to have seen adverts on social media for the drug, followed by cocaine (26 per cent) and MDMA/ecstasy, with 24 per cent of people.
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
SCHEDULE
Saturday, April 20: 11am to 7pm - Abu Dhabi World Jiu-Jitsu Festival and Para jiu-jitsu.
Sunday, April 21: 11am to 6pm - Abu Dhabi World Youth (female) Jiu-Jitsu Championship.
Monday, April 22: 11am to 6pm - Abu Dhabi World Youth (male) Jiu-Jitsu Championship.
Tuesday, April 23: 11am-6pm Abu Dhabi World Masters Jiu-Jitsu Championship.
Wednesday, April 24: 11am-6pm Abu Dhabi World Professional Jiu-Jitsu Championship.
Thursday, April 25: 11am-5pm Abu Dhabi World Professional Jiu-Jitsu Championship.
Friday, April 26: 3pm to 6pm Finals of the Abu Dhabi World Professional Jiu-Jitsu Championship.
Saturday, April 27: 4pm and 8pm awards ceremony.
Result
Arsenal 4
Monreal (51'), Ramsey (82'), Lacazette 85', 89')
West Ham United 1
Arnautovic (64')
How Voiss turns words to speech
The device has a screen reader or software that monitors what happens on the screen
The screen reader sends the text to the speech synthesiser
This converts to audio whatever it receives from screen reader, so the person can hear what is happening on the screen
A VOISS computer costs between $200 and $250 depending on memory card capacity that ranges from 32GB to 128GB
The speech synthesisers VOISS develops are free
Subsequent computer versions will include improvements such as wireless keyboards
Arabic voice in affordable talking computer to be added next year to English, Portuguese, and Spanish synthesiser
Partnerships planned during Expo 2020 Dubai to add more languages
At least 2.2 billion people globally have a vision impairment or blindness
More than 90 per cent live in developing countries
The Long-term aim of VOISS to reach the technology to people in poor countries with workshops that teach them to build their own device
JAPANESE GRAND PRIX INFO
Schedule (All times UAE)
First practice: Friday, 5-6.30am
Second practice: Friday, 9-10.30am
Third practice: Saturday, 7-8am
Qualifying: Saturday, 10-11am
Race: Sunday, 9am-midday
Race venue: Suzuka International Racing Course
Circuit Length: 5.807km
Number of Laps: 53
Watch live: beIN Sports HD
Day 4, Dubai Test: At a glance
Moment of the day Lahiru Gamage appeared to have been hard done by when he had his dismissal of Sami Aslam chalked off for a no-ball. Replays suggested he had not overstepped. No matter. Two balls later, the exact same combination – Gamage the bowler and Kusal Mendis at second slip – combined again to send Aslam back.
Stat of the day Haris Sohail took three wickets for one run in the only over he bowled, to end the Sri Lanka second innings in a hurry. That was as many as he had managed in total in his 10-year, 58-match first-class career to date. It was also the first time a bowler had taken three wickets having bowled just one over in an innings in Tests.
The verdict Just 119 more and with five wickets remaining seems like a perfectly attainable target for Pakistan. Factor in the fact the pitch is worn, is turning prodigiously, and that Sri Lanka’s seam bowlers have also been finding the strip to their liking, it is apparent the task is still a tough one. Still, though, thanks to Asad Shafiq and Sarfraz Ahmed, it is possible.
Brief scores:
Toss: Kerala Knights, opted to fielf
Pakhtoons 109-5 (10 ov)
Fletcher 32; Lamichhane 3-17
Kerala Knights 110-2 (7.5 ov)
Morgan 46 not out, Stirling 40
'The Ice Road'
Director: Jonathan Hensleigh
Stars: Liam Neeson, Amber Midthunder, Laurence Fishburne
2/5
Explainer: Tanween Design Programme
Non-profit arts studio Tashkeel launched this annual initiative with the intention of supporting budding designers in the UAE. This year, three talents were chosen from hundreds of applicants to be a part of the sixth creative development programme. These are architect Abdulla Al Mulla, interior designer Lana El Samman and graphic designer Yara Habib.
The trio have been guided by experts from the industry over the course of nine months, as they developed their own products that merge their unique styles with traditional elements of Emirati design. This includes laboratory sessions, experimental and collaborative practice, investigation of new business models and evaluation.
It is led by British contemporary design project specialist Helen Voce and mentor Kevin Badni, and offers participants access to experts from across the world, including the likes of UK designer Gareth Neal and multidisciplinary designer and entrepreneur, Sheikh Salem Al Qassimi.
The final pieces are being revealed in a worldwide limited-edition release on the first day of Downtown Designs at Dubai Design Week 2019. Tashkeel will be at stand E31 at the exhibition.
Lisa Ball-Lechgar, deputy director of Tashkeel, said: “The diversity and calibre of the applicants this year … is reflective of the dynamic change that the UAE art and design industry is witnessing, with young creators resolute in making their bold design ideas a reality.”
Honeymoonish
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Meatless Days
Sara Suleri, with an introduction by Kamila Shamsie
Penguin
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Second Test
In Dubai
Pakistan 418-5 (declared)
New Zealand 90 and 131-2 (follow on)
Day 3: New Zealand trail by 197 runs with 8 wickets remaining
World ranking (at month’s end)
Jan - 257
Feb - 198
Mar - 159
Apr - 161
May - 159
Jun – 162
Currently: 88
Year-end rank since turning pro
2016 - 279
2015 - 185
2014 - 143
2013 - 63
2012 - 384
2011 - 883
THE SIXTH SENSE
Starring: Bruce Willis, Toni Collette, Hayley Joel Osment
Director: M. Night Shyamalan
Rating: 5/5
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
