As Europe stands at a pivotal crossroads in an era marked by rapid technological evolution and geopolitical uncertainty, the dual challenges of maintaining global competitiveness and achieving sustainability objectives have never been more intertwined. The Letta report, recently unveiled, underscores a transformative vision for the Single Market, surprisingly positioning research and innovation (R&I) alongside the clean energy transition at the heart of Europe’s agenda for 2024-2029. This initiative is not just timely but a compelling call to action for safeguarding Europe’s economic future.

The European Green Deal, which has evolved in response to various global crises, has consistently highlighted the need to align economic progress with climate objectives. However, amid current budgetary constraints and the shifting geopolitical landscape, its future success is now more tied than ever to steadfast R&I investments. They are essential to regain Europe’s competitive edge in a global market increasingly defined by innovation while also ensuring that the 2050 net-zero trajectory remains well on track.

It is in this light that the Letta report proposes to embed a fifth freedom within the Single Market—focusing on the movement of knowledge through enhanced R&I and education—beyond the current free movement of people, goods, services and capital. He argues that the EU is losing ground to the US because of innovation, among other critical factors. It warns that if Europe does not address the existing gaps, it will continue to fall behind in economic output and competitiveness, as well as against China and other upcoming players. Therefore, as we stated in a previously published piece, this fifth freedom is critical to harnessing the power of technology and building leading industrial ecosystems and robust infrastructure in Europe.

According to an article by Science|Business, “in many ways, the document reflects what the EU’s R&D community has been saying for years. That is, research funding streams need to be better aligned, public-private partnerships boosted, data sharing made easier and more accessible, open science be pursued while maintaining research security measures, EU R&I laws be harmonised, the use of regulatory sandboxes expanded, and more”. This explains why the research and innovation community generally welcomed the report.

However, the Letta report also highlights a significant challenge—the investment gap in R&I. Addressing this gap is essential not only for fostering the green transition but also for maintaining its industrial base’s relevance on the world stage. Public-private partnerships, expanded mobility programs for researchers, and simplified bureaucratic processes are recommended as measures to enhance the European R&I ecosystem.

Against this backdrop, recent cuts in Horizon Europe’s budget, on which EERA has also repeatedly raised concerns, remind us of the stark disparities between ambition and action. Investing in R&I cannot merely be part of the political discourse but should become a foundational strategy for future-proofing Europe’s industries and market. As the bloc seeks to navigate the complexities of a rapidly changing world, enhancing the R&I framework is essential to ensure that it does not merely adapt to changes but actively shapes the global technological landscape.

As we anticipate the drafting of the EERA flagship report on the role of clean energy research in enhancing the EU’s competitiveness and strategic autonomy, it is evident that translating R&I into the implementation of Europe’s industrial strategy through technologies at higher readiness levels becomes imperative. However, the emphasis on low Technology Readiness Levels (TRLs) is particularly crucial and cannot be dismissed, and this is a point for which we particularly aim to advocate. We will argue that by focusing on emerging technologies, Europe can pioneer underexplored and even unexplored sectors, aiming to secure a leading role in upcoming innovation waves.

On the side of energy markets, the most novel proposal is for the EU to create a “Clean energy delivery agency” by 2027. According to a Bruegel analysis, “a key role for the agency is to act as a “one-stop shop” for companies, providing tailored advice on permitting processes, certification and funding schemes”. However, “harmonised energy data across the EU is central to the functioning of a possible future energy agency”; moreover, “radical improvements to Europe’s energy data are an essential ingredient for policymakers to steer a successful and fair energy transition”. Both ideas have been strongly advocated by EERA and included in a recently launched paper, which again underscores the vital role of the research and innovation community in tackling Europe’s complex energy transition challenges.

As the final plenary session of the current 2019-2024 European Parliament term concluded last week, an era which began under substantially different economic and geopolitical circumstances draws to a close. The moment has now come for the heightened political debates which will culminate in the European Parliament’s elections from 6 to 9 June: a key democratic appointment for citizens across the bloc to redefine the priorities shaping the next European institutional cycle.

With this background in mind and informed by the insights of the Letta report, we call on current and prospective policymakers to prioritise research and innovation to boost Europe’s competitive stance globally. It is not just about maintaining current advantages or regaining lost ground but also about capturing new opportunities that could define Europe’s landscape for decades to come and secure its future economic prosperity in a socially just and environmentally sustainable manner.