An easy, faster way to make the EU more competitive

The European Union has long prided itself as a regulation superpower, a greater stickler to regulations than economic and technological giants — the United States and China. However, the EU's competitiveness report prepared in September by Mario Draghi, former president of the European Central Bank, warned that the bloc's excessive adherence to rules and regulations has seriously stifled innovation and caused an exodus of capital and talent.

While European Commission President Ursula von der Leyen has felt extremely proud of herself in entrusting Draghi with the report, the fact that it happened in the final year of her first five-year term means a wait too long and too costly wastage. The EU will now have to undo many of the things "achieved" during her first term, especially in terms of rules and regulations.

Based on Draghi's report, the European Commission released the EU Competitiveness Compass on Jan 29 with the aim of enabling the EU to catch up with US and China in productivity, innovation and technology.