A Unified and Competitive Europe: Insights from Davos
“Europe has a unique social market economy. We have the second-largest economy and the biggest trading sector in the world. We have longer life expectancy, higher social and environmental standards, and lower inequalities than all our global competitors,” stated Ursula von der Leyen at the World Economic Forum in Davos.
The President of the European Commission delivered an influential and visionary address. She outlined Europe’s roadmap to navigate a fractured global landscape. She tackled the complexities of today’s geopolitical and economic challenges while highlighting the essential role of social dialogue, leadership, and innovation in shaping a resilient and competitive Europe.
As we often say at CEC European Managers, “Social dialogue is the cornerstone for fostering global collaboration, increasing social cohesion, and strengthening Europe’s competitiveness” in a rapidly evolving world.
Global Cooperation: Social Dialogue and Social Economy
Von der Leyen’s remarks emphasized the critical need for cooperation and collaboration in tackling pressing global issues. From eradicating poverty to advancing technological innovation, Europe’s role as a leader is underpinned by its ability to promote shared responsibilities and mutual benefits across regions and economic blocs.
We have longer life expectancy, higher social and environmental standards, and lower inequalities than all our global competitors.
Ursula von der Leyen
EU Commission President
One of the central themes of her speech was the importance of modernizing trade rules to ensure fairness and equity for all global citizens. She also underscored the need to address international fragmentation through dialogue and updated frameworks that reflect the realities of the modern world.
This is not the first time Von der Leyen highlighted the importance of a social market economy adapted to modern times. She has done it consistently. For example, at the High-Level Summit in La Hulpe last April 2024, where CEC European Managers represented European leaders and managers’ voices with President Maxime Legrand.
At Davos, she highlighted the social market economy as a model for balancing innovation, equity, and social standards while addressing inequalities. This unique economic structure, she argued, allows Europe to remain competitive while maintaining the well-being of its people.
Energy independence was another key element in von der Leyen’s call for collaboration. She stressed the importance of reducing Europe’s reliance on external actors, particularly amid recent geopolitical uncertainties and building resilience through shared responsibilities among nations.
Reaffirming Europe’s commitment to the Paris Agreement, von der Leyen highlighted the continent’s leadership in combating climate change and advancing nature-based solutions. She stressed that global cooperation is essential to meet the challenges of climate change, clean energy, and artificial intelligence (AI), “competition must not escalate into conflict,” she implied.
Leadership and Management: Future and Innovation
The European Commission aims for an independent and autonomous Europe. Central to this vision is creating a European Savings and Investments Union, a bold initiative designed to mobilize Europe’s €1.4 trillion in household savings. By eliminating fragmentation in capital markets, Europe aims to channel this wealth into investments that drive innovation and support clean technology.
To do so, the European Commission aims to introduce a “28th regime” to harmonize corporate, labour, and taxation laws. This unified framework will enable businesses, particularly small and medium-sized enterprises (SMEs), to scale up more effectively across the continent.
Other plans include investing in renewable energy technologies, modernizing grids, and exploring next-generation solutions like fusion and solid-state batteries. These efforts aim to reduce reliance on fossil fuels and position Europe as a global leader in clean energy innovation.
Leaders and managers must train and prepare to ensure they are ready to tackle the upcoming transitions and to make sure the skills and labour shortages are dealt with a non-biased and inclusive approach. “We need to create a workforce that is both inclusive and prepared for future challenges,” von der Leyen said.
Finally, strategic partnerships with key global actors, including India, China, and the United States, were also highlighted as essential to addressing mutual challenges and seizing opportunities.
Von der Leyen’s message from Davos is clear: the time for action is now. By fostering social dialogue, championing innovation, and building resilient partnerships, Europe is poised to create a more unified and prosperous global community.
