The recently appointed European Commission has just announced the Competitiveness Compass, and the intended set of legislative and non-legislative activities it will undertake in 2025. This blog post provides an overview of both items and how they are likely to promote (or not) innovation in rural communities. On 14 – 15 May 2025, FUTURAL is organising the European Rural Innovation Forum (RIF) in Spain. The event aims to contribute to the latest EU policy developments focusing on smart rural development and rural innovation. But what are the recent “initiatives” on the EU policy agenda on innovation? Carla Lostrangio from FUTURAL partner AEIDL examines the case.
The EU’s focus on innovation and competitiveness
Innovation emerges as one of the key priorities of the EU Commission until 2029. As stressed in the Draghi and Letta reports, Europe lags behind other world countries in terms of innovation in key strategic sectors, including breakthrough technology and clean industry. As a result, the newer EU Commission recalls the importance of increasing competitiveness in our continent and closing the innovation gap with other global players.
In line with these priorities, the European Commission presented its Competitiveness Compass by January 29th, which outlines Europe’s strategy to address this innovation gap. Two weeks later, the European Commission Work Programme presented the list of initiatives and legislative files that will be issued in 2025.
Closing the Innovation Gap
The Compass’ goal is to nurture Europe’s innate strengths, harness its resources, and remove the barriers at European and national levels.’ EU’s Competitiveness Compass. Closing the innovation gap is one of the three main flagship initiatives under the EU’s competitiveness Compass.
Under this line, the EU aims at boosting young innovative start-ups, promoting industrial leadership in high-growth sectors and supporting the diffusion of technologies across existing companies and SMEs. It also aims to simplify making business in Europe with the creation of a ‘European’ legal status for firms, the so-called 28th regime.
Yet, this strategic document completely overlooked at territorial dimension of the innovation gap. Europe’s innovation varies broadly across countries and regions, and rural innovation is often governed by different mechanisms and patterns, as underlined by the Joint Research Centre. Unfortunately, it is not clear how the newest strategy for innovation and the upcoming EU Competitiveness Fund will continue supporting rural areas and not occur to its detriment.
The European Commission’s initiatives to watch out
Europe’s support of innovation and practical roll-out will depend on the legislative and non-legislative activities undertaken in the coming months by the Commission and their discussion with co-legislators. This is an incredible opportunity for rural actors to make their voice to be heard and not be missed in this discussion.
Europe’s support of innovation and practical roll-out will depend on the legislative and non-legislative activities undertaken in the coming months by the Commission and their discussion with co-legislators. This is an incredible opportunity for rural actors to make their voices heard and not be missed in this discussion.
Below are the key dates for scoping Europe’s support for rural innovation and digitalisation:
• Union of Skills (non-legislative, Q1 2025)
• Vision for Agriculture and Food (non-legislative, Q1 2025)
• Single Market Strategy (non-legislative, Q2 2025)
• EU Start-up and Scale-up Strategy (non-legislative, Q2 2025)
• Sustainable Transport Investment Plan (non-legislative, Q3 2025)
• Quality jobs roadmap (non-legislative, Q4 2025)
• Digital Networks Act (legislative, incl. impact assessment, Q4 2025)
• Digital Package (legislative incl. impact assessment, Q4 2025)
• European Business Wallet (legislative, incl. impact assessment, Article 114 TFEU, Q4 2025)
• Bioeconomy Strategy (non-legislative or legislative, Q4 2025)
In addition, by autumn 2025, the European Commission will present its proposal for the Post-2027 Multiannual Financial Framework. A consultation on the future of the Common Agricultural Policy and the Cohesion Policy is expected in the coming months.
FUTURAL’s contribution to innovation policies
In the FUTURAL project, AEIDL is leading the mapping of policies supporting smart community-led innovation in rural areas at European and country level. Our policy mapping will be used to inform policymakers on how to ensure the Europe’s policy and next MFF negotiations are fit to support rural innovation.
To do this, FUTURAL will contribute to the European Commission’s consultation, such as the one on the future of the EU’s budget, and present its early policy findings and recommendations at the European Rural Innovation Forum (14-15 May, Amorebieta-Extano, Spain).
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