Von der Leyen: Innovation investment must rise to match global ambitions
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European Commission president-elect Ursula von der Leyen speaks during the presentation of the College of Commissioners and their programme at the European Parliament on November 27, 2019 in Strasbourg | Frederick Florin/AFP via Getty Images
Von der Leyen: Innovation investment must rise to match global ambitions
The incoming Commission President said a shift was urgently needed to prevent Europe from falling behind competitors such as the US and China.
Incoming Commission President Ursula von der Leyen Wednesday reiterated the importance of moving to “significantly modernize” the EU budget to ensure Europe’s industry can keep up with global competitors.
At her confirmation speech in Strasbourg, von der Leyen said Europe is failing to invest sufficiently in innovation — a nod to the ongoing dispute over how to allocate spending in the bloc’s long-term budget for 2021-2027.
“We are the world’s trading superpower. We rank first globally in exporting manufactured goods and services. We are the largest source and destination of foreign direct investment anywhere in the world,” she said. “We should harness this transformative power of the twin climate and digital transition to strengthen our own industrial base and innovation potential. This can only be done through investment.”
Von der Leyen said a shift was urgently needed to prevent Europe from falling behind competitors such as the U.S. and China.
“For years, we invested less in innovation than our competitors do,” she said. “This is a huge handicap to our competitiveness … This is why we should not see the next Multiannual Financial Framework as a simple accounting exercise. The world seven years ago looks nothing like the world in seven years time. Our budget must be significantly modernized.”
The Commission’s blueprint for the seven-year MFF proposes spending more on innovation and cutting allocations for the traditional programs of agriculture and cohesion.
But the move to shift resources away from powerful farmers is being met with resistance from EU countries including France, Poland, Italy and Spain and from many EU parliamentarians. The European Parliament backs more spending on innovation as part of a much larger EU budget that also maintains financing for cohesion and agricultural subsidies.