Le Gouvernement du Grand-Duché du Luxembourg

Market Intelligence Briefing

Understanding Europe’s new roadmap for competitiveness

The European Commission’s recent strategic communication, “A Competitiveness Compass for the EU,” marks the EU’s most comprehensive economic policy reorientation in over a decade.

14/05/2025

Set against a backdrop of rising global power competition, energy shocks and lagging productivity, A Competitiveness Compass for the EU outlines a five-year agenda (2025–2030) to reinforce Europe's technological leadership, industrial resilience and investment attractiveness.

Luxinnovation’s Policy Watch Briefing helps Luxembourg stakeholders understand and anticipate the implications of major EU policy developments.

A compass to guide Europe’s industrial and innovation ambitions

The Competitiveness Compass is structured around four major pillars:

  • Innovation-led productivity, with targeted support for AI, semiconductors, biotech, quantum and advanced materials
  • Industrial decarbonisation, backed by regulatory and financial frameworks such as the Clean Industrial Deal and upcoming Industrial Decarbonisation Accelerator Act
  • Strategic autonomy and economic security, including joint raw materials procurement, critical medicines strategies and a new defence industrial policy
  • Horizontal enablers, such as streamlined regulation, enhanced skills mobility and coordinated EU/national investments

Download the full briefing to get the complete overview.

Why the Competitiveness Compass matters for Luxembourg

This strategy is an opportunity for Luxembourg’s industry, R&D players and public stakeholders to align with high-impact EU priorities. The focus on innovation, cleantech, the circular economy and resilient supply chains mirrors the goals of Luxembourg’s own economic development agenda.

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Read the briefing for a full overview.
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