'There is no time to waste': EU leaders want to boost competitiveness to close gap with US and China
==========

European Union leaders are debating a new 'European Competitiveness Deal' aimed at helping the 27-nation bloc close the gap with Chinese and American rivals. The EU's share of the world's largest economies has diminished over the past 30 years, and the region is feeling pressure from U.S. and Chinese efforts to support domestic production through subsidies and tax breaks. The proposal includes an EU-wide effort to subsidize industrial companies in response to U.S. subsidies for environmentally friendly technology and China's subsidies for electric cars and solar panels. The former president of the European Central Bank, Mario Draghi, said the EU lacks a clear strategy to answer the challenges proposed by Chinese and American rivals in key industries. The report also calls for better integrating the bloc's financial markets and increasing the capacities of the European Investment Bank to invest in strategic sectors. EU rules restrict member governments' aid to companies to avoid distorting business competition across the 27-member union's free trade zone. The proposal suggests requiring countries to use a chunk of such aid for EU-wide projects instead of purely national ones.

#Eu #Competitiveness #China #Us #Subsidies #Investment #RenewableEnergy #GreenTechnology #FinancialMarkets #EuropeanInvestmentBank

https://abcnews.go.com/Business/wireStory/time-waste-eu-leaders-boost-competitiveness-close-gap-109375044