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EU Competitiveness Tracker

The EU Competitiveness Tracker monitors how the EU is delivering on the commitments set out in the Copenhagen Pledge. Across the five pillars of the pledge, 35 legislative initiatives have been identified as critical to fulfilling those commitments. For each initiative, the tracker provides an assessment of its status as well as its competitiveness advantages and risks, giving businesses, policymakers, and stakeholders a basis for evaluating whether European politicians are translating their commitments into action.

 

  • 4 out of 35

    initiatives are formally adopted

    The scale and urgency of Europe's competitiveness challenge demand a pace of delivery that the current progress does not reflect. The gap between political commitment and concrete output remains wide.

  • 21 out of 35

    initiatives are still in early stages

    Initiatives in early stages cannot yet reduce regulatory burdens, lower compliance costs or mobilise investment. European politicians has yet to produce the necessary changes.

  • 3 out of 4

    initiatives adopted have a simplification dimension

    The simplification agenda is advancing, but is often offset by new or inconsistent requirements, limiting the overall reduction in administrative burdens for European businesses.

  1. 1

    Unlock innovation, reduce regulatory burdens, remove barriers to the Single Market

    Progress in Pillar 1

    Progress on unlocking innovation, reducing regulatory burdens, and removing barriers to the Single Market is broad but uneven. The strongest institutional momentum is concentrated in the Omnibus simplification agenda, where several initiatives seek to reduce compliance burdens and improve the functioning of the Single Market. At the same time, simplification in some files is offset by new or inconsistent requirements in others, limiting the overall reduction in regulatory burdens for European businesses.

     

    Below is a list of the initiatives corresponding to the policy asks set out in The Copenhagen Pledge 

    Pillar 1: The Pledge's Policy Recommendations

    • Europe must build a world-class research and innovation ecosystem – powered by a world-leading intellectual property framework, globally competitive approval processes and incentives for early access and uptake of innovation in Member States.  
    • Overregulation and Single Market barriers constitute an all too dominant obstacle to innovation and growth in Europe. Immediate action is needed to change status quo. 
    • The Commission’s regulatory burden reduction targets must be met as soon as possible and within this term at the very latest. Existing legislation must be reduced meaningfully and simplified through an Omnibus approach in strategic sectors without compromising core objectives. New regulatory initiatives must embed a much stronger focus on burden reduction, and regulation should only respond to demonstrated needs.
    • Overlapping rules must be eliminated, compliance streamlined, inconsistencies removed, administrative procedures fully digitalised, and qualifications mutually recognised properly across the Union.
    • Remaining barriers in the Single Market must be removed to improve market launch, foster cross-border trade and strengthen opportunities for scale-up and investment by rewarding innovation. This includes addressing underinvestment in Member States’ procurement of innovative products and services.

    Pharmaceutical Package

    Status

    Adopted/Completed 

    Relevance to the Copenhagen Pledge

    Revision of the EU’s pharmaceutical legislation intended to modernize the framework and increase patient access to medicines across the EU.

    Competitiveness Advantages

    • Better coordination between national authorities and stronger support for research and innovation can reduce regulatory fragmentation and accelerate the development and market launch of new medicines in Europe.  

    Competitiveness Risks

    • More complex reporting obligations and shorter regulatory data protection will ultimately weaken incentives for long-term and high-risk pharmaceutical R&D.

    Omnibus I: Sustainability

    Status

    Adopted/Completed

    Relevance to the Copenhagen Pledge

    Simplification of sustainability reporting frameworks such as CSRD and CSDDD to reduce administrative burdens.  

    Competitiveness Advantages

    • Streamlined and clarified ESG reporting rules across the EU will reduce regulatory complexity and legal uncertainty for companies operating in the Single Market.
    • Higher thresholds under CSRD and CSDDD and clearer exemptions will reduce disproportionate compliance burdens for smaller and mid-sized companies, freeing resources for investment, innovation and growth.  

    Competitiveness Risks

    • Unclear guidance on the information and resources companies may use in their due diligence can increase compliance costs.
    • Despite simplification efforts, companies can still face difficulties obtaining reliable ESG information from suppliers in their value chains, meaning administrative burdens and compliance complexity may persist.  

    Omnibus II: InvestEU

    Status

    Adopted/Completed 

    Relevance to the Copenhagen Pledge

    Simplifies administrative procedures for EU investment programmes.  

    Competitiveness Advantages

    • The Omnibus package introduces targeted simplifications to the InvestEU framework aimed at improving the efficiency and accessibility of EU investment instruments. The agreed changes include an increase of the EU guarantee under InvestEU, the possibility to combine InvestEU with remaining resources from earlier EU financial instruments, and simplified reporting requirements for smaller operations.

    Competitiveness Risks

    • The overall competitiveness impact of the initiative will depend on whether these simplification measures translate into a materially improved ability to mobilise private capital and accelerate investment across the Union.  

    Omnibus IV: SMEs, Small Mid-Caps, Batteries

    Status

    Tabled 

    Relevance to the Copenhagen Pledge

    Package aimed at reducing regulatory burdens and simplifying compliance obligations for SMEs and mid-cap companies.  

    Competitiveness Advantages

    • Digitalisation of compliance documentation and simplified information requirements will reduce administrative costs for companies operating across the Single Market.
    • Simplified regulatory procedures could improve access to regulatory information and reduce compliance friction for SMEs and mid-cap companies operating across multiple Member States.

    Competitiveness Risks

    • Unclear or inconsistent terminology regarding product categories and regulatory scope can create legal uncertainty and unintentionallyPexpand compliance obligations.
    • Additional operational requirements — including direct access to declarations of conformity, accessibility provisions and customer support obligations — can increase compliance complexity if digitalisation measures are not implemented proportionally.  

    Omnibus V: Defence

    Status

    Tabled 

    Relevance to the Copenhagen Pledge

    Defence regulatory simplification package targeting procurement procedures and administrative barriers.  

    Competitiveness Advantages

    • Simplification of procurement procedures under the Defence and Security Procurement Directive can accelerate defence procurement and reduce delays in the production and delivery of defence equipment across Member States.
    • Reduced administrative burdens and streamlined regulatory requirements can improve industrial efficiency and support the scaling of Europe’s defence industrial capacity.
    • Harmonised rules for transit permits, security clearances and export procedures could strengthen the integration and operational efficiency of the European defence industrial base.

    Competitiveness Risks

    • Regulatory and administrative delays can persist if changes to certification, permitting, security clearances and cross-border movement do not translate into materially faster approval and delivery processes.

    Omnibus VI: Chemicals

    Status

    Tabled 

    Relevance to the Copenhagen Pledge

    Simplification of selected elements of EU chemicals legislation, including labelling and registration requirements.  

    Competitiveness Advantages

    • Simplified labelling, packaging and parts of chemical registration procedures can support innovation and reduce regulatory delays for companies bringing chemical products to market.
    • Stronger EU-level monitoring and evaluation of chemical supply chains could improve predictability and resilience for critical chemical inputs used in European industry.
    • More predictable regulatory timelines — including mechanisms such as “stop-the-clock” provisions for labelling changes — will improve planning certainty for companies adjusting to new requirements.

    Competitiveness Risks

    • The expected benefits depend on digital and harmonised processes being practical and accessible for companies of all sizes, including SMEs.
    • Implementation challenges — particularly related to reporting requirements, data handling and compliance procedures — can limit the initiative’s impact if regulatory simplification is not delivered in practice.

    Omnibus VII: Digital

    Status

    Proposal published 

    Relevance to the Copenhagen Pledge

    Package aiming to simplify and better align EU digital and cybersecurity legislation, including selected reporting and compliance obligations across major digital frameworks.  

    Competitiveness Advantages

    • Greater legal clarity and alignment across digital and cybersecurity frameworks can reduce compliance uncertainty for companies operating across multiple Member States.
    • Simplified and coordinated incident reporting obligations could strengthen competitiveness by enabling faster responses to cyber incidents and reducing operational disruptions.

    Competitiveness Risks

    • Reporting obligations can remain cumulative across multiple digital regulations, limiting expected burden reductions if companies continue to face overlapping compliance requirements.
    • Limited progress in simplifying cybersecurity product requirements can constrain competitiveness if compliance costs for manufacturers remain high and fragmented across legislation.  

    Omnibus to simplify energy product legislation

    Status

    Announced (Commission Work Programme indicative date: Q2 2026)

    Relevance to the Copenhagen Pledge

    Streamlining of EU energy labelling and ecodesign requirements to cut regulatory complexity while preserving the effectiveness of existing rules.  

    Competitiveness Assessment

    Assessment pending – to be assessed once the proposal is published.  

    Omnibus on taxation

    Status

    Announced (Commission Work Programme indicative date: Q2 2026) 

    Relevance to the Copenhagen Pledge

    Streamlining key EU corporate tax legislation, including the Anti-Tax Avoidance Directive and the Directive on Administrative Cooperation, to eliminate overlapping rules and reduce compliance burdens for businesses.  

    Competitiveness Assessment

    Assessment pending – to be assessed once the proposal is published.  

    28th regime

    Status

    Announced (Commission Work Programme indicative date: Q1 2026)

    Relevance to the Copenhagen Pledge

    A voluntary EU-wide legal regime aimed at reducing cross-border barriers and improving conditions for companies to establish, operate and scale across the Single Market.  

    Competitiveness Advantages

    • A voluntary EU-wide company form will reduce entry barriers for innovative startups and scale-ups by introducing simplified capital requirements, standard model documents and fully digital, paperless incorporation.
    • By reducing cross-border legal complexity and certain company law-related transaction costs, the 28th regime will make it easier for companies to establish, operate and scale across multiple Member States.
    • Potential extensions to accounting, reporting and selected tax elements should further reduce administrative burdens, improve transparency and strengthen legal certainty for companies operating across the Single Market  

    Competitiveness Risks

    • The regime could add legal complexity if its interaction with existing national frameworks and other potential 28th regimes is not clearly designed.
    • Its impact could be weakened if the initiative becomes too broad or politically overambitious instead of focusing on areas where it can deliver tangible improvements for companies.  

    European Innovation Act

    Status

    Announced (Commission Work Programme indicative date: Q1 2026) 

    Relevance to the Copenhagen Pledge

    Initiative aimed at harmonising innovation frameworks and improving access to research infrastructure and innovation procurement.  

    Competitiveness Advantages

    • Harmonisation of innovation-related rules and definitions for startups, scale-ups and innovative companies can reduce fragmentation and improve conditions for scaling innovative businesses across the Single Market.
    • Improved access to research and technology infrastructure could strengthen Europe’s innovation ecosystem by enabling companies — particularly SMEs and startups — to test, develop and scale new technologies.
    • Easier access to innovation procurement will further support competitiveness by creating stronger market demand for new technologies and innovative solutions.

    Competitiveness Risks

    • The initiative could increase regulatory complexity if a new EU framework introduces additional administrative requirements rather than simplifying existing rules.
    • Overlap with existing EU initiatives addressing similar policy areas will limit the initiative’s effectiveness if multiple frameworks create additional layers of regulation and documentation requirements.

    Public procurement Act

    Status

    Announced (Commission Work Programme indicative date: Q2 2026)

    Relevance to the Copenhagen Pledge

    Revision of EU procurement rules to modernise procedures and improve market access.  

    Competitiveness Advantages

    • Using public procurement as a strategic demand instrument can support European competitiveness by stimulating innovation, industrial capacity and the deployment of new technologies across sectors.
    • Simplification of procurement procedures and reduced administrative burdens will lower transaction costs and improve access to public markets, particularly for SMEs and companies operating across borders.
    • Improved professionalisation of procurement practices can strengthen competition and innovation by making public authorities more predictable and capable buyers.  

    Competitiveness Risks

    • Union origin requirements must be applied in a targeted manner and in line with the EU’s trade agreements and existing FDI instruments to avoid sliding into protectionism, double regulation, higher administrative burdens, and ultimately weakened competitiveness.
    • Overlapping reporting and documentation requirements across procurement and sector-specific legislation risk introducing additional administrative burdens for companies.
    • Procurement frameworks pursuing multiple policy objectives simultaneously can reduce efficiency if contracting authorities face conflicting requirements and administrative overload.  

    European Product Act

    Status

    Announced (Commission Work Programme indicative date: Q3 2026) 

    Relevance to the Copenhagen Pledge

    Initiative to modernise and better align the EU’s product compliance, standardisation and market surveillance frameworks.  

    Competitiveness Advantages

    • A more harmonised product framework will reduce regulatory fragmentation, legal uncertainty and compliance costs for companies placing products on the EU market.
    • Clearer and more digital compliance requirements will lower administrative burdens and make it easier for companies to operate across the Single Market.
    • Stronger and better coordinated market surveillance should improve enforcement and help protect compliant companies against unfair competition from non-compliant products.

    Competitiveness Risks

    • The initiative can weaken competitiveness if it adds new horizontal requirements without sufficiently simplifying or aligning existing product rules.
    • Broad or complex digital information requirements will increase costs and legal uncertainty, especially for manufacturers and SMEs with limited digital capacity.  

    Circular Economy Act

    Status

    Announced (Commission Work Programme indicative date: Q3 2026) 

    Relevance to the Copenhagen Pledge

    Policy framework to strengthen recycling systems, secondary material markets and circular value chains.  

    Competitiveness Advantages

    • Strengthening recycling infrastructure and secondary material markets can improve resource efficiency and reduce Europe’s dependence on external raw material supply.
    • Harmonised rules on waste classification, end-of-waste criteria and cross-border waste transport can create scale for recycling investments and support the development of a European market for secondary materials.
    • Investments in specialised recycling systems and circular infrastructure can strengthen Europe’s industrial resilience by enabling recovery of critical materials and reducing supply chain vulnerabilities.  

    Competitiveness Risks

    • Continued fragmentation in waste classification, transport rules and end-of-waste decisions across Member States can limit the initiative’s effectiveness and increase administrative burdens for companies.
    • Poorly calibrated regulatory requirements — such as broad recycled content mandates or extended producer responsibility schemes — can increase costs and distort markets if sector-specific conditions and technological maturity are not adequately considered.
    • Administrative burdens associated with compliance, reporting and take-back schemes could reduce incentives for companies to invest in circular solutions.

    European Biotech Act II

    Status

    Announced (Commission Work Programme indicative date: Q3 2026)

    Relevance to the Copenhagen Pledge

    Initiative aimed at strengthening Europe’s biosolutions ecosystem by improving regulatory conditions, investment frameworks and industrial scaling of biotechnology used in manufacturing, energy, agriculture and food production.

    Competitiveness Advantages

    • Faster and more predictable regulatory approvals — including the use of regulatory sandboxes and a clearer risk–benefit approach — can reduce time-to-market for new biotech products developed and commercialised in Europe.
    • Improved access to scale-up financing — including proposals such as a European BioScale Fund and stronger use of IPCEI instruments — can help close Europe’s investment gap and enable industrial-scale biomanufacturing.
    • Support for biotech clusters, talent attraction and AI-enabled biomanufacturing can strengthen Europe’s innovation ecosystem and improve the ability of biotech firms to scale globally.  

    Competitiveness Risks

    • Fragmented regulatory regimes and slow approval timelines across Member States will continue to hinder innovation and delay market entry for biotech solutions if regulatory reforms are not sufficiently ambitious.
    • Limited access to scale-up financing and complex EU funding procedures could constrain industrial deployment of biotech solutions, particularly during the transition from pilot to commercial production.
    • Europe risks losing investment and technological leadership to competitors if regulatory conditions, talent attraction and financing environments remain less competitive.  

    Overview of Economic, Regulatory and Administrative Impacts of EU Proposals

    Status

    TBC

    Relevance to the Copenhagen Pledge

    Initiative requiring COMPET and ECOFIN ministers to assess the costs and benefits of new EU legislation for businesses, strengthening political oversight of regulatory impacts on competitiveness.  

    Competitiveness Assessment

    Assessment pending – to be assessed once the proposal is published.  

  2. 2

    Incentivise private investments in Europe to build strategic influence

    Progress in Pillar 2

    The development is moving in the right direction when it comes to strengthening private investment in Europe and thereby Europe’s strategic influence. The key priorities in the Multiannual Financial Framework (MFF), including a larger budget allocation to the European Competitiveness Fund and a strengthening of Horizon Europe, point towards a more strategic European investment architecture. However, Europe is still not delivering at the required scale, and the mobilisation of private capital through initiatives such as the Savings and Investments Union demands more than gradual simplifications and improved coordination.

     

    Below is a list of the identified initiatives than align with the policy recommendations set out in The Copenhagen Pledge

    Pillar 2: The Pledge's Policy Recommendations

    • EU’s Multiannual Financial Framework (MFF 2028–2034) must act as a non-bureaucratic catalyst for private capital, mobilizing investments in Europe’s strategic technologies and sectors.
    • The proposed European Competitiveness Fund and the Horizon Europe Programme must target industrial adoption and accelerate industrialization in Europe.
    • A true European Savings and Investments Union should be established by 2030 to improve access to private capital markets and channel capital to key strategic investment areas. Reforms to national pension systems and tax policies should further encourage private capital flows into European markets.
    • To close Europe’s innovation gap, EU Member States must commit to investing at least 3% of GDP in research and innovation in shared responsibility with industry. This ambition must be matched by a significant increase in R&I funding in the MFF 2028–2034, with strong emphasis on scaling innovations across Europe.
    • Joint European research and commercialization projects should be deployed to mobilize private investment in next-generation technologies. EU Investments should target large-scale innovation projects that are more cost-effective at the European level than for individual Member States, supported by incentives such as public procurement.

    European Competitiveness Fund

    Status

    Tabled 

    Relevance to the Copenhagen Pledge

    As part of the next Multiannual Financial Framework (2028–2034), the fund focuses support on strategic technologies, closing Europe’s innovation gap and strengthening its global market position.

    Competitiveness Advantages

    • The European Competitiveness Fund will strengthen Europe’s competitive position by consolidating multiple EU funding instruments into a single large-scale investment platform focused on strategic technologies and industrial scale-up.
    • An excellence-based EU funding approach can reduce subsidy competition between Member States and strengthen the Single Market by providing a credible alternative to fragmented national state aid schemes.
    • By creating a continuous funding chain from research to scale-up and industrial deployment, the fund could help address Europe’s structural gap in translating strong research performance into globally competitive industries.  

    Competitiveness Risks

    • The fund’s impact can be reduced if negotiations dilute its focus on competitiveness and redirect resources toward regional or cohesion objectives rather than productivity and industrial scale-up.
    • Promised simplification may not materialise if approval procedures, reporting requirements and governance structures remain complex, limiting access for SMEs and smaller firms.

    Horizon Europe Programme

    Status

    Tabled 

    Relevance to the Copenhagen Pledge

    As part of the next Multiannual Financial Framework (2028–2034), the EU’s flagship research and innovation programme supporting cross-border scientific collaboration and technology development.  

    Competitiveness Advantages

    • Expanded funding for research, digital technologies, energy infrastructure and defence-related innovation will strengthen Europe’s capacity to develop and deploy critical technologies.
    • Cross-border research collaboration under Horizon Europe can improve knowledge sharing and technological development across Member States, strengthening Europe’s innovation ecosystem  

    Competitiveness Risks

    • Fragmented governance and weak coordination with other EU funding instruments — particularly the European Competitiveness Fund — can limit the programme’s impact on industrial scale-up.  

    Savings & Investment Union

    Status

    Announced 

    Relevance to the Copenhagen Pledge

    Initiative to deepen European capital markets and improve cross-border capital flows.  

    Competitiveness Advantages

    • The Savings and Investment Union can strengthen Europe’s competitive position by increasing the availability of risk capital through deeper and more integrated European capital markets.
    • Measures aimed at mobilising household savings may unlock significant private financing for strategic sectors, including green technologies, digital innovation and security-related industries.
    • Simplification of regulatory requirements and reduction of administrative burdens will improve investment conditions and increase the attractiveness of European capital markets for investors.

    Competitiveness Risks

    • Limited progress in improving the overall business environment in Europe will constrain the initiative’s impact if regulatory complexity and administrative burdens continue to discourage investment.
    • The proposed measures on fragmentation across national capital market structures will continue to limit cross-border investment if coordination efforts do not sufficiently address structural barriers.
    • (DISCLAIMER:  The effectiveness of the Savings and Investment Union is dependent on how ambitious the proposed initiatives turn out to be to achieve the intended goal of increasing availability of finance (e.g. include a Banking Union, an EU savings and retail investment product)  

     

    European Research Act

    Status

    Announced (Commission Work Programme indicative date: Q3 2026) 

    Relevance to the Copenhagen Pledge

    Initiative aimed at strengthening European research and innovation capacity by increasing R&D investment, improving coordination of research funding and strengthening framework conditions for researchers. 

    Competitiveness Assessment

    Assessment pending – to be assessed once the proposal is published.  

  3. 3

    Power the Future of Europe: Clean, Competitive, and resilient energy for industrial leadership

    Progress in Pillar 3

    Progress on securing clean, competitive, and resilient energy for industrial leadership reflects a growing recognition that industrial competitiveness depends on affordable, secure, and predictable energy. However, many of the initiatives risk increasing costs, reinforcing fragmentation, or creating regulatory uncertainty.

     

    Below is a list of the identified initiatives that align with the policy recommendations set out in The Copenhagen Pledge

     

    Pillar 3: The Pledge's Policy Asks

    • Europe’s electrification must be accelerated. This requires implementation through National Energy and Climate Plans (NECPs), significant upgrades to and expansion of energy grids, faster permitting procedures for infrastructure projects, removal of barriers to industrial electrification and derisking large-scale infrastructure projects. A well performing electricity market is key to a robust energy system and security of supply.
    • To build a clean, affordable, and energy-efficient industrial foundation, Europe must strengthen the  robustness of its energy systems by significantly 
      increasing domestic clean energy production, while improving the competitiveness of renewable solutions and designing trusted partnerships.
    • To accelerate the clean transition, the Clean Industrial Deal, the EU 2040 climate target and the post 2030 climate architecture must be designed and implemented to strengthen Europe’s competitiveness and security. Decarbonisation must be cost-efficient with the emissions trading system (ETS) as a central mechanism. This should support a technology-neutral approach scaling all clean technologies towards lower dependency on imported fossil fuels and climate-neutrality in 2050, including effective carbon leakage protection.

    European Grid package

    Status

    Proposal published

    Relevance to the Copenhagen Pledge

    Policy package aimed at accelerating investment in electricity infrastructure and cross-border interconnections. 

    Competitiveness Advantages

    • Expanding and modernising electricity grids will support industrial competitiveness by enabling greater deployment of renewable energy and electrification across the European economy.
    • Accelerated grid investments and improved cross-border interconnections can strengthen energy security and improve reliability for energy-intensive industries.

     

    Competitiveness Risks

    • Reopening core electricity market legislation — including the Renewable Energy Directive and Electricity Market Directive — will create regulatory uncertainty if negotiations extend beyond grid infrastructure issues.  

    Industrial accelerator Act

    Status

    Proposal published

    Relevance to the Copenhagen Pledge

    Industrial policy initiative aimed at accelerating strategic industrial projects through faster permitting, targeted procurement provisions and strengthened foreign investment screening.  

    Competitiveness Advantages

    • Faster permitting and approval procedures will accelerate the deployment of industrial projects and support the scaling of strategic industries in Europe.
    • The creation of industrial acceleration areas could strengthen competitiveness by facilitating investment in industrial infrastructure and production capacity.
    • This initiative can strengthen Europe’s competitive position by supporting more resilient industrial capacity and more secure supply chains in strategic sectors, particularly where Europe faces growing geopolitical and market vulnerabilities.

    Competitiveness Risks

    • Union origin requirements must be applied in a targeted manner and in line with the EU’s trade agreements and existing FDI instruments to avoid sliding into protectionism, double regulation, higher administrative burdens, and ultimately weakened competitiveness
    • Tighter foreign investment screening will constrain investment flows if the framework lacks sufficient clarity and predictability for international investors.
    • The proposal’s reliance on delegated acts for key operational elements will reduce legal certainty if critical regulatory details are determined only after the legislation is adopted.

    The Temporary Decarbonisation Fund

    Status

    Announced (Indicative date: Mid 2026)

    Relevance to the Copenhagen Pledge

    • The fund can help maintain a level playing field for European industry by mitigating carbon leakage risks during the transition away from free ETS allowances and the gradual introduction of CBAM.
    • Temporary support can preserve incentives for industrial decarbonisation while cushioning the impact of rising carbon costs during the transition period.

    Competitiveness Advantages

    • The fund can help maintain a level playing field for European industry by mitigating carbon leakage risks during the transition away from free ETS allowances and the gradual introduction of CBAM.
    • Temporary support can preserve incentives for industrial decarbonisation while cushioning the impact of rising carbon costs during the transition period.

    Competitiveness Risks

    • Administrative complexity and reporting requirements can reduce the effectiveness of the instrument if companies face additional compliance burdens alongside existing ETS and CBAM obligations.
    • Weak coordination between the fund, CBAM and the EU ETS could create overlapping regulatory requirements and increase uncertainty for investment decisions.
    • Unclear phase-out conditions can weaken long-term investment incentives if companies cannot anticipate the duration and structure of the support mechanism.

    Update of the governance of the Energy Union and Climate action including the phase-out of fossil fuels subsidies

    Status

    Announced (Commission Work Programme indicative date: Q4 2026)

    Relevance to the Copenhagen Pledge

    Update of the EU's Energy Union governance framework to better reflect current geopolitical and regulatory realities, streamline energy and climate planning, and include provisions for the phase-out of fossil fuel subsidies.

    Competitiveness Advantages

    • A stable and predictable carbon pricing framework under EU ETS can strengthen investment certainty for industrial decarbonisation.
    • A strong EU ETS provides market-based investment signals that support industrial decarbonisation, innovation and modernization of Europe’s energy system.

    Competitiveness Risks

    • Weakening the EU ETS can undermine existing and planned industrial investments by reducing the predictability of carbon pricing signals.
    • Weak carbon price signals can increase pressure on public funding mechanisms and weaken market-based incentives for industrial decarbonisation.  

    Strengthening energy security

    Status

    Announced (Commission Work Programme indicative date: Q1 2026)

    Relevance to the Copenhagen Pledge

    Revision of the EU energy security framework to strengthen resilience against physical, cyber, and climate-related risks to critical infrastructure, covering both gas and electricity supply security.

    Competitiveness Assessment

    Assessment pending – to be assessed once the proposal is published.  

    Setting-up of the renewable energy framework

    Status

    Announced (Commission Work Programme indicative date: Q3 2026)

    Relevance to the Copenhagen Pledge

    Policy framework to accelerate the deployment of renewable energy projects by simplifying permitting procedures, designating renewables acceleration areas, and removing barriers to power purchase agreements.  

    Competitiveness Assessment

    Assessment pending – to be assessed once the proposal is published.  

    Setting-up of the energy-efficiency framework

    Status

    Announced (Commission Work Programme indicative date: Q3 2026)

    Relevance to the Copenhagen Pledge

    Policy framework to reinvigorate EU energy efficiency efforts by streamlining the implementation of existing rules and mobilising investment across key sectors. 

    Competitiveness Assessment

    Assessment pending – to be assessed once the proposal is published.  

    Development of the CO2 transportation infrastructure and markets

    Status

    Announced (Commission Work Programme indicative date: Q3 2026)

    Relevance to the Copenhagen Pledge

    Legislative framework to develop competitive CO2 transportation infrastructure and markets by ensuring cross-border interoperability, third-party access, and regulatory certainty across the CO2 value chain, in support of the EU's carbon capture and storage ambitions. 

    Competitiveness Assessment

    Assessment pending – to be assessed once the proposal is published. 

    Nationally determined Contributions (NDC)

    Status

    Close to adoption

    Relevance to the Copenhagen Pledge

    Updated EU climate commitments under the Paris Agreement shaping long-term climate policy.  

    Competitiveness Advantages

    • Clear and credible NDC commitments will strengthen investment predictability for companies developing low-carbon technologies and supply chains.
    • Long-term climate targets can position European companies for first-mover advantages in emerging clean technology markets. 

    Competitiveness Risks

    • Higher climate ambition may increase energy and compliance costs for trade-exposed industries if global competitors adopt less ambitious climate policies.
    • Competitive imbalances can emerge if international climate policies diverge significantly and carbon leakage risks are not adequately addressed.
  4. 4

    Build a Competitive and Resilient Defense Industrial Base

    Progress in Pillar 4

    Progress towards building a competitive and resilient defence industrial base is clearly underway through the European Defence Industry Programme. However, the potential to scale up these achievements will depend on the effective implementation of the related simplification agenda.

     

    Below is a list of the identified initiatives than align with the policy recommendations set out in The Copenhagen Pledge 

     

    Pillar 4: The Pledge's Policy Redommendations

    • To strengthen Europe’s defence industrial base, common production and acquisition through strategic orders of sufficient scope and volume of European designed defence products must be incentivised. 
      This will foster a competitive and consolidated ecosystem that includes both large companies and SMEs.  
    • The path from decision to delivery must be shortened. This requires removing barriers to transnational industrial cooperation and simplifying and harmonizing certifications, permits, and standards.
    • Full use of EU financial instruments must be fully utilised to leverage private capital, ensure economic stability and attract long-term investment, which Europe can channel into the development of innovative defence capabilities.
    • The cooperation between Ukrainian defence companies and the European industrial base should be intensified 

    European Defence Industrial Programme (EDIP)

    Status

    Adopted/Completed

    Relevance to the Copenhagen Pledge

    EDIP allocates €1.5 billion from the EU budget (2025–2027) to strengthen the competitiveness and resilience of the European defence technological and industrial base.  

    Competitiveness Advantages

    • Stronger coordination of defence investment, procurement and industrial cooperation across Member States can improve scale and efficiency in Europe’s defence industrial base.
    • Support for advanced defence technologies and joint projects can strengthen European defence value chains and reduce dependency on external suppliers.
    • A €300 million Ukraine Support Instrument will strengthen cooperation between Ukrainian defence companies and the European industrial base, supporting supply chain integration and industrial capacity.

    Competitiveness Risks

    • Union origin requirements must be applied in a targeted manner to avoid limiting supply chain flexibility or increasing costs where access to global partners and technologies remains important.  

    Defence Package

    Status

    Tabled

    Relevance to the Copenhagen Pledge

    Defence package aimed at strengthening Europe’s defence industrial base through faster permitting, simpler intra-EU transfers and procurement rules, and stronger financing via SAFE to scale production capacity and defence investment. 

    Competitiveness Assessment

    Assessment pending

    Simplifying defense and sensitive security procurement

    Status

    Announced (Commission Work Programme indicative date: Q3 2026)

    Relevance to the Copenhagen Pledge

    Legislative package to reduce administrative burdens in EU defence procurement and accelerate access to innovative and readily available defence capabilities. 

    Competitiveness Assessment

    Assessment pending – to be assessed once the proposal is published.  

  5. 5

    Advance Europe's Technological Innovation

    Progress in Pillar 5

    Progress on advancing Europe’s technological resilience points to a stronger focus on critical technologies as a driver of long-term competitiveness. However, most initiatives remain too early-stage to demonstrate concrete delivery.

     

    Below is a list of the identified initiatives than align with the policy recommendations set out in The Copenhagen Pledge 

    Pillar 5: the Pledge's Policy Recommendations

    • Industrial and technological resilience must be reinforced by accelerating deployment and fostering lead markets for European clean and green technologies, AI and quantum technologies as well as next-generation innovations, while safeguarding open markets, fair competition, and diversified global supply chains
    • Strategic dependencies must be reduced by investing in secure and sustainable technological ecosystems and strengthening Europe’s capacity to scale innovations from research to market.  
    • The deployment of critical digital infrastructure, including 5G and 6G networks, must be accelerated to underpin advanced connectivity and enable 
      next-generation digital services. 

    Quantum Act

    Status

    Announced (Commission Work Programme indicative date: Q2 2026)

    Relevance to the Copenhagen Pledge

    Policy initiative supporting coordinated investment in quantum technologies, research infrastructure and industrial deployment.  

    Competitiveness Advantages

    • Coordinated European investment in quantum infrastructure, research and industrial capacity can strengthen Europe’s ability to scale emerging quantum technologies.
    • Support for pilot projects, production capabilities and talent development could accelerate industrial adoption of quantum technologies across European industries.

    Competitiveness Risks

    • Premature or overly complex regulation of a still-maturing technology will slow innovation and reduce Europe’s attractiveness for quantum investment.  

    Chips Act II

    Status

    Announced (Commission Work Programme indicative date: Q1 2026)

    Relevance to the Copenhagen Pledge

    Follow-up initiative strengthening Europe’s semiconductor ecosystem and supply chain resilience.  

    Competitiveness Advantages

    • Stronger alignment between semiconductor supply and industrial demand can strengthen Europe’s microelectronics ecosystem by linking chip producers with key downstream industries.
    • Strategic partnerships with trusted international partners can improve supply security and reduce Europe’s dependence on concentrated global semiconductor supply chains.  

    Competitiveness Risks

    • Continued fragmentation of EU and national funding instruments can limit investment scale and weaken Europe’s ability to compete with global semiconductor initiatives.
    • Complex state aid procedures and slow approval timelines can reduce Europe’s attractiveness for semiconductor investment if project development remains cumbersome  

    Cloud and AI Development Act

    Status

    Announced (Commission Work Programme indicative date: Q1 2026)

    Relevance to the Copenhagen Pledge

    Policy initiative aimed at expanding European cloud infrastructure and computing capacity needed for artificial intelligence development.  

    Competitiveness Advantages

    • Strengthening interoperability, data mobility and portability across cloud services can improve competition and reduce dependency on individual technology providers.
    • Expanded access to scalable cloud infrastructure and computing capacity can accelerate AI development and digital innovation across European industries.

    Competitiveness Risks

    • Fragmented implementation across Member States will limit the initiative’s effectiveness if interoperability and portability rules are not harmonised and operationally practical.
    • Limited availability of competitive energy supply and suitable infrastructure locations can constrain data centre expansion in Europe.
    • Overly rigid sovereignty or procurement requirements can reduce competition and innovation if they restrict market access or technological flexibility.
Anne Hedeager Bentsen

Anne Hedeager Bentsen

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