The three European industrial organisations call for a change of pace: 'Competitiveness must become the compass of every European policy'.

Europe risks unprecedented industrial decline if it does not act now to strengthen its competitiveness. It is this the alarm launched jointly by Confindustria, BDI and MEDEF at statement issued at the end of the 7th Trilateral Business Forum, held in Rome on 5 and 6 November 2025.

The work was attended by Emanuele Orsini (Confindustria), Peter Leibinger (BDI) and Patrick Martin (MEDEF), together with the European Commissioner for Prosperity and Industrial Strategy Stéphane Séjournéwhich brought the Commission's perspective on the Union's economic and production priorities.

"It is time to recognise that Europe is seriously falling behind and that the risk of decline and de-industrialisation is now higher than ever," reads the joint statement (here the full version).

The three organisations call on the European institutions to take immediate action:

"Now more than ever, Europe must assert its independence, protect its security and take the lead in the development of technologies essential to its strategic interests."

The appeal consists of six strategic priorities to boost the continent's growth, competitiveness and industrial autonomy.

Simplifying the rules and completing the Single Market

The first point of the declaration concerns the need to Cutting red tape and speeding up regulatory simplification. The three industry confederations call for full implementation of theEuropean simplification agendastarted with the Omnibus' packagesto reduce the burden and time required to implement directives on due diligence (CSDD) e sustainability reporting (CSRD).

"The Commission must actively pursue its simplification and burden reduction agenda, setting ambitious and concrete targets," reads the text, which calls on Parliament and the Council to ensure "real relief for businesses".

The organisations insist on the completion of the European Single Marketas the 'foundation of a stronger and more autonomous Europe', and on the need to remove the barriers that still restrict the free movement of goods, services, capital and people.

Decarbonisation as an engine of competitiveness

The second pillar of the declaration calls for making the green transition an engine of growth and not a brake on industrial development. 'Europe must ensure that the path to climate neutrality strengthens - rather than weakens - its industrial base,' the document states, emphasising the urgency of a 'balanced and realistic' approach.

The transition will have to be supported by affordable energy, infrastructure investments, stable regulations and technology neutrality.
Among the key measures indicated

• reforming the European ETS to limit volatility and speculation;
• ensuring a fair and consistent CBAM with the ETSwith offsets for exports and simplified rules for SMEs;
• recognise an equal role for nuclear, renewables, gas, hydrogen and CCUS in decarbonisation;
• adopt emission reduction targets compatible with available technologiesThe proposed 90% reduction of CO₂ emissions by 2040 raises serious issues in terms of feasibility and the enabling conditions must first be secured

"The enabling conditions must first be ensured by the EU: competitive energy, predictability of investments, simplified regulation and an effective CBAM."

Strengthening technological and digital sovereignty

Third priority: regaining technological leadership and reduce strategic dependencies on other countries. Today, Europe produces only 11 % of the world's semiconductors and remains exposed to extraterritorial regulations that jeopardise the competitiveness of its companies.

"Technological sovereignty is a cornerstone of Europe's future," declare the three organisations, urging Brussels to strengthen digital and cybersecuritydevelop a cloud and sovereign artificial intelligenceand support the acquisition of new digital skills in all productive sectors.

A European budget geared towards growth and competitiveness

The fourth priority concerns the Next Multiannual Financial Framework (MFF) of the Union, which should be 'ambitious, strategic and consistent with the objectives of industrial growth'. The three organisations propose the creation of a European Competitiveness Fundintended for large industrial projects and the reduction of the fragmentation of national programmes.

At the same time, they reject any new European own resource - as the Corporate Resource (CORE) or the use of ETS proceeds - which would increase the tax burden on companies.

"Such measures would undermine the attractiveness of the EU as an investment destination and create further obstacles to growth."

The three organisations also call for complete the Banking and Capital Markets Unionto better channel private savings into productive investments and reduce the competitiveness gap with the US.

Life sciences: pillar of European industrial sovereignty

The fifth area of intervention concerns the life sciences sectoras the 'cornerstone of Europe's health, prosperity and strategic sovereignty'. In 2024, the pharmaceutical sector alone recorded a trade surplus of almost EUR 200 billion: a sign of its strength and potential.

"To maintain global leadership, Europe must redouble its efforts on innovation, not weaken it."

The declaration calls for the full implementation of the European Strategy for Life Sciences, the intellectual property protection, the regulatory simplification on medical and diagnostic devices and the strengthening technology transfer between research and industry.

Defence and space: investing in European strategic autonomy

Last priority: the defence and the space sectorwhich are crucial for the continent's security and resilience. Europe must close the gap with the US and China by increasing investment and promoting a European Defence Industrial Policy more coordinated.

"It is essential that the European Competitiveness Fund allocates adequate resources to the defence and space sectors, actively involving industry in setting priorities."

The declaration also recalls the need to strengthen industrial partnerships between France, Germany and Italyto build a common technological base and achieve economies of scale.

Competitiveness as Europe's compass

In the conclusion of the document, the three organisations warn that without a strong industrial policy, Europe risks losing influence, security and prosperity. In collaboration with BusinessEuropethey are committed to promoting a vision of a Europe industrially sound, digitally autonomous and sustainable.

"Competitiveness must become the compass of every European policy, regulation and investment," is the final appeal that closes the joint declaration.

An invitation to make industry the heart of the Europe of the future.