Nicosia: A well-functioning Single Market is crucial for bridging the gap between research and industrial-scale production in the defence sector, stated Minister of Energy, Commerce and Industry, Michael Damianos, following an informal meeting of Internal Market and Industry Ministers in Nicosia. This meeting underscored the importance of the Competitiveness Compass as a central tool to mobilize investment and strengthen Europe's long-term competitiveness.
According to Cyprus News Agency, Damianos highlighted that discussions during the meeting focused on three key areas that are vital to Europe's competitiveness and strategic autonomy. In the first session, ministers emphasized the increasing strategic importance of the defence sector for Europe's security and resilience. Discussions covered how EU instruments, including the European Defence Industry Programme and the upcoming European Competitiveness Fund, can enhance cooperation, joint investment, and industrial modernization.
Damianos emphasized the priority of closing the gap between research and industrial-scale production, noting that a well-functioning Single Market is essential for this, especially for defence-related SMEs. Special attention was given to ensuring that small member states, including Cyprus, benefit and contribute meaningfully.
The second discussion, according to the Minister, reviewed progress on the Competitiveness Compass. He noted that while there has been progress, challenges remain, particularly regarding low AI uptake among SMEs, financing constraints for start-ups, and regulatory and administrative burdens. Key initiatives under the Compass, such as the AI Continent Action Plan, the Clean Industrial Deal, and the Critical Raw Materials Act, were discussed as part of efforts to mobilize investment and strengthen Europe's competitiveness.
The final discussion focused on the Consumer Agenda 2030, where ministers exchanged views on strengthening the Single Market for consumers, removing barriers to cross-border transactions, and ensuring consumer protection keeps pace with digital developments. Upcoming initiatives like the Digital Fairness Act and the revision of the Consumer Protection Cooperation Regulation are expected to reinforce consumer trust across the Union.
European Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, Michael McGrath, added that ministers discussed strengthening Europe's industrial and defence base and reviewed progress under the Competitiveness Compass. He noted that over half of the initiatives under the Compass have been delivered in just 12 months, marking significant progress. However, he stressed the need to accelerate efforts due to the gravity of the situation.
McGrath pointed out that progress on the Single Market depends on collective political will, highlighting that integration has stalled due to persistent barriers. He emphasized the importance of a roadmap with clear deadlines to simplify and harmonize processes where possible. Simplification efforts have already led to significant savings, directly benefiting small and medium-sized enterprises.
On investment, McGrath stated that the European Commission is mobilizing private capital, de-risking strategic investments, and making Europe a more attractive place to invest through measures like the European Competitiveness Fund and the Savings and Investment Union.
McGrath also highlighted the importance of securing strategic supply chains, mentioning the Resource EU action plan and the forthcoming Critical Raw Materials Centre as crucial steps in reducing geopolitical risks and strengthening industrial resilience. The upcoming Industrial Accelerator Act aims to create leading markets and drive demand for European production.
Regarding consumer protection, McGrath commended the Cyprus Presidency for prioritizing consumer protection and emphasized the link between consumer protection and EU competitiveness. He discussed the need to remove remaining obstacles in the Single Market and to enhance consumer protection in the digital environment. The Digital Fairness Act proposal, set to be presented by the end of the year, will aim to strengthen consumer protection and clarify rules for digital services.
McGrath concluded by emphasizing the need for better enforcement to protect businesses against unfair competition and to safeguard consumers. The Commission plans to propose revisions to the Consumer Protection Cooperation Regulation and the Market Surveillance Regulation to ensure more coordinated and effective enforcement across the Single Market.