Europe’s path to more competitiveness needs to focus on increased investment in people and technology – not lowering rights and standards, the General Secretary of the European Trade Union Confederation (ETUC) told EU leaders today.
At a European Commission event to mark a year since the publication of the Draghi report on competitiveness, Esther Lynch called for a shift towards strategic investment for a European industrial policy with quality jobs at its heart as the only way to secure long-term resilience and prosperity for Europe.
The ETUC said three initiatives are crucial for competitiveness:
- A Just Transition Act to ensure jobs are protected and workers have a right to training along with anticipation and management of change.
- A Quality Jobs Act that ensures secure jobs, fair conditions, ends exploitation and promotes collective bargaining coverage towards 80% because fair wages drive productivity, reduce turnover, support demand, and fuel innovation.
- A European Investment Pact for Productivity negotiated with trade unions that will invest in workers, technology and innovation and ensure that productivity gains are shared.
Rejecting any race to the bottom with global rivals as a dead end for Europe, Lynch said: “deregulation undermines productivity, erodes skills, and leaves workers and businesses vulnerable.” Instead Europe’s path to competitiveness must be based on investing in the workforce.
Speaking in Brussels today, ETUC General Secretary Esther Lynch said:
“Some employers have used the competitiveness push as a cover to call for the dismantling of the European social model, including calling equal pay for men and women a ‘regulatory burden’.
“The Draghi Report called for reform. But reform must not mean deregulation. Weakening protections does not make Europe stronger. It makes us fragile. Simplification, yes – when it cuts bureaucracy without cutting rights. But dismantling protections would be a trap.
“Our European Social Model is not red tape. It is the foundation of stability, trust, and competitiveness. We should be proud of our standards, from AI to baby food – consumers and investors trust them, and that trust is a European advantage.
“Europe has what others lack: social resilience. Predictable governance builds trust. Skilled, fairly paid workers drive innovation. But we need more investment for strong public services – education, housing, health, childcare and transport – are not costs, but building blocks of competitiveness that many investors, employers, and communities value most.
“So, one year after the Draghi Report, the EU faces a choice: Chase short-term cost-cutting by undermining social foundations... Or build long-term competitiveness by strengthening them.
“And trade unions are ready – ready to sit down with policymakers and employers, to negotiate, to shape, and to deliver these priorities together. Because true competitiveness is not built against workers, but with them. That is the European way. And it is the stronger way.”
