European Union leaders have adopted the Budapest Declaration on a new European Competitiveness Pact, underscoring the need for urgent and decisive action to meet set objectives.

“Facing new geopolitical realities and economic and demographic challenges, we, the leaders of the European Union, are committed to securing our shared economic prosperity, enhancing our competitiveness, making the EU the world’s first climate-neutral continent, and ensuring the EU’s sovereignty, security, resilience, and global influence,” the declaration states.

According to the document, EU policymakers aim to make the European Union more competitive, productive, innovative, and sustainable.

“It is imperative to swiftly close the innovation and productivity gap, both with global competitors and within the EU. We will work in unity and solidarity for the benefit of all EU citizens, businesses, and member states,” the declaration adds.

The authors of the Budapest Declaration argue that the status quo is no longer viable and call for decisive and collective efforts to address current challenges.

The declaration outlines seven key goals, including intensifying efforts to ensure a functional single market within the EU and taking “decisive steps” toward a Savings and Investment Union by 2026, alongside rapid advancement in building an EU capital market.

The EU’s industrial policy must support the development of future-critical technologies, overcome transitional issues, and achieve decarbonization, the declaration’s authors note.

The European Union also aims to streamline its bureaucratic procedures, provide a clear and straightforward regulatory framework for businesses, strengthen its defense industry, and lead globally in research and innovation.

The declaration further emphasizes the EU’s dual objectives of achieving strategic energy sovereignty and reaching climate neutrality by 2050.

“We will build a genuine Energy Union characterized by a fully integrated and interconnected energy market, prioritizing the decarbonization of our energy mix and ensuring accessible, clean energy for all our citizens and businesses,” the declaration, published on the European Commission’s website, states.