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In her Political Guidelines for 2024-2029, Commission President Ursula von der Leyen says that “Europe has always been a continent of industry, enterprise and innovation, reinventing itself through industrial and tech revolutions, global competition and changing societies,” but that “Europe cannot afford to fall behind and lose its competitive edge.” I fully agree that investment in Europe continues to be a critical part of building European capacities and skills – and with over 25 years of delivering for customers in the region, this is something about which we care deeply at Amazon.
What should an innovative European economy, fit for future challenges, look like? In my view it should entail an openness to new ideas, new technologies, and new approaches to existing challenges. And as Europe looks to the future, there is a growing recognition that innovation will be vital for the prosperity and wellbeing of citizens and businesses.
The future of European competitiveness
Earlier this year I read with interest the report on the ‘future of European competitiveness’ by Mario Draghi, former Italian Prime Minister and European Central Bank President, which acts as a backdrop to the Commission President’s direction of travel. I believe that Mr. Draghi’s plea for renewed focus on productivity is key, and that a number of the report’s horizontal recommendations – closing the innovation gap, boosting productivity in high-tech industries, and uncovering new drivers of growth – could help spur a more ambitious, successful, and resilient European economy. These recommendations, coupled with those made by Dr Enrico Letta in his own report on the Single Market, can deliver on the political commitments made by Commission President von der Leyen.
Delivering on Europe’s competitiveness goal
The key to delivering a more competitive Europe lies in harnessing new technology to reindustrialise our economy, and in empowering citizens and SMEs. This political goal is absolutely achievable, and at Amazon we are ready to play our part in its delivery. As I think about the next five years, these considerations are of the utmost importance:
1. Future-oriented technologies in Europe must be underpinned by a supportive regulatory framework. For example, a responsible and pro-innovation approach to AI is required if Europe is to meet its ‘Digital Decade’ targets, a strategy that could unlock over €3.4 trillion by 2030. We recognise the importance of the EU’s efforts to establish effective, risk-based safeguards for AI through initiatives like the AI Act. At the same time, it is also important that the regulatory framework enables coherence and certainty, continued innovation, practical application of the technology, and positions European businesses for success in the global economy.
2. Europe’s workforce must have the necessary skills if it is to harness the potential of these fast-evolving technologies. This can be done by working closely with the private sector to provide education and training in new technologies.
3. Legislative complexity should not stifle the ability of SMEs to harness the Single Market. Harmonisation, simplification, and consistent enforcement of existing rules are critical to ensuring a frictionless market for European SMEs. Most recently, a report from Flint Global demonstrated that completing the Single Market could raise EU-wide GDP by €198 to €335 billion a year.
Amazon is driving competitiveness
We all have a part to play in securing Europe’s competitiveness on the global stage, and I’m proud to work at Amazon where we are doing so through significant investment in the EU: €180 billion since 2010 – including over €30 billion in 2023 alone – and we currently have 150,000 direct employees spread across 20 Member States. Ensuring Europe has an economic environment that is welcoming to investment will be an important part of delivering growth across the region in the years to come.
Amazon also champions small and medium-sized enterprises – the backbone of the European economy and key to its competitiveness. In 2023, more than 127,000 SMEs from the EU sold more than 1.3 billion products worldwide via Amazon, generating over €14 billion in export sales. This growth has led these SMEs to create an estimated 350,000 new jobs in 2024 to support their online businesses as they scale up operations in customer service, inventory management, marketing, and more to meet increasing demand.
And we’re not just seeing this kind of growth in Europe’s major towns and cities. According to new research by Oxford Economics, e-commerce also drives growth in Europe’s rural areas, reducing travel for shoppers by up to 150km per person annually, and saving people in rural communities a whole day in shopping time per person each year. Indeed, almost 50% of EU-based SMEs selling on Amazon are located in rural areas.
As we strive towards a more competitive European economy, my team and I continue to advocate for a frictionless Single Market in which SMEs can succeed and thrive for the benefit of Europe and its citizens, and we look forward to partnering with policymakers on the road to achieving this.
Lucy C. Cronin is Vice President, EU Public Policy at Amazon.
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