The EU is preparing to survive and compete with the economies of the US and China. What is Ukraine doing? - Lana Zerkal

The discussion surrounding American grants has overshadowed an event that will have a more significant long-term impact on Ukraine. This is the presentation yesterday in Brussels of the "Competitiveness Compass for the EU," which outlines how the European Union must evolve over the next five years to survive and compete with the economies of the United States and China.

Ursula von der Leyen has identified five approaches in this strategy that the EU should adopt across three key areas. Consequently, the future of the European Union will hinge on the implementation of innovations aimed at achieving a new level of productivity, decarbonizing the economy, and reducing dependency on supplies from countries outside the EU.

To facilitate this, the document outlines the following mechanisms:

• Simplifying regulations for the development of private capital;
• Removing barriers in the internal market;
• Changing fiscal policy and creating a special instrument to support development;
• Providing relevant educational programs and developing the internal labor market;
• Improving coordination between EU policies and member states.

Unlike Ukraine, the European Union does not hesitate to analyze its policies, acknowledge existing issues that hinder competition, and subject established fiscal and budgetary procedures to harsh criticism. This approach may allow the EU to evolve and, despite the bureaucratization of all processes, achieve the goals outlined in the "limited autonomy" strategy. In some instances, Ursula von der Leyen intends to challenge the rules she previously promoted herself, as the situation has changed and she understands the reasons behind this shift.

But what do we have aside from public scandals and unrealistic plans for opening all "negotiation clusters" for EU membership this year? How are we preparing for competition in this new and remarkable world, where predators no longer pretend to be pink ponies?

We must be competitive both within the EU and in a world where no one owes us anything. The sovereignty of a state lies not only in its ability to act at its discretion but also in recognizing that there are other sovereign entities around you with their interests and predatory behavior. And for now, it’s Orbán and Fico. However, this year’s elections, particularly in Romania and the Czech Republic, may increase the number of right-wing radicals and significantly impact the political landscape in the EU.

Thus, an impeccable storm is brewing. And we need our own compass.