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The competitiveness coordination tool
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Why is coordination important The need for coordination is at the heart of the EU construction. 75 years ago, Robert Schuman proposed the European Coal and Steel Commu­nity to ensure long-lasting peace and stability on the European continent andprovide all the member countries with the basic elements of in­dustrial production on the same terms,[to] lay a true foundation for their economic unification. 5 Economic cooperation was strengthened over time to become todays European Union and its Single Market. Since 1957, EU industrial capacity has evolved far beyond the production of coal and steel, and its membership has grown, add­ing new Member States and their many regions. Enrico Lettas 2024 report,Much more than a Market, demonstrates that there is still consider­able untapped potential for European integra­tion, which could further strengthen industrial competitiveness. One of the pathways is through greater cross-border coordination and collabora­tion across countries, sectors and disciplines. 6 Further enhancing coordination between regions, nations and EU institutions will help to make the most of synergies within the Single Market, break down silos, address market failures and help the EU to act as a unified economic bloc, as Schuman proposed, rather than as fragmented markets. Additionally, with enhanced coordina­tion and a strategic steer to guide industrial poli­cy across the EU, industries and governments can pool resources and knowledge to better re­spond to emerging challenges, enhancing their resilience and technological sovereignty. In re­cent years, Europes coordinated response to the energy crisis showed the EUs capacity to rise as one when faced with a common challenge, leading to investment and the modernisation of the EUs energy infrastructure. 7 The added value of EU-level coordination For this coordination to be effective and lawful, it must happen in line with the principles of sub­sidiarity and proportionality. The principle of sub­sidiarity(defined in the Treaty of the European Union) states that decisions should be taken at the level of government that is as close as possi­ble to the citizen 8 and that the Union should only act when Member States cannot achieve their ob­jectives on their own, ensuring that action at EU level delivers true added value. 9 Enabling the nec­essary coordination to strengthen efforts between goals, between countries and between sectors is 5  European Union.(n.d.). Schuman Declaration May 1950. https://european-union.europa.eu/principles-countries-history/history-eu/1945-59/ schuman-declaration-may-1950_en. 6  Letta, E.(2024). Much more than a market: Speed, security, solidarity: Empowering the Single Market to deliver a sustainable future and prosperity for all EU Citizens. https://www.consilium.europa.eu/media/ny3j24sm/much-more-than-a-market-report-by-enrico-letta.pdf. 7  Letta, E.(2024). Much more than a market: Speed, security, solidarity: Empowering the Single Market to deliver a sustainable future and prosperity for all EU Citizens(p. 62). https://www.consilium.europa.eu/media/ny3j24sm/much-more-than-a-market-report-by-enrico-letta.pdf. 8  EUR-Lex.(n.d.). Principle of subsidiarity. European Union. https://eur-lex.europa.eu/EN/legal-content/glossary/principle-of-subsidiarity.html. 9  European Parliament.(n. d.). The principle of subsidiarity. Fact Sheets of the European Union. https://www.europarl.europa.eu/factsheets/en/ sheet/7/subsidiarity. Why is coordination important 5