Europe's competitiveness starts at home. With the 2026 Spring Package, the European Commission has once again analysed the economic challenges faced by member states and presented specific reform recommendations. The focus lies on investments, innovations, and improved framework conditions for businesses. At the same time, Brussels aims to provide fiscal leeway for member states to invest in defence, energy supply and infrastructure. The Commission paints a familiar picture for Germany: a strong industrial and technological foundation marred by structural issues such as high energy costs, labour shortages, and deficits in investment and digitalisation. The derived recommendations result in a to-do list for economic policies geared towards growth and competitiveness.

Enable investments rather than tying funds up 

A key focus of the Commission's proposals is to strengthen Germany's investment capacity. The new special fund for infrastructure and climate neutrality should be consistently used for productive investments that modernise the nation's capital stock and enable growth. At the same time, Brussels calls for reforms in pension systems, the welfare state, and tax structures to ensure the long-term sustainability of public finances and create stronger work incentives. For businesses, the German Chamber of Commerce and Industry (DIHK) highlights the importance of ensuring funds are directed towards infrastructure, digitalisation and decarbonisation, rather than merely replacing existing expenditures. However, funding alone will not suffice: without accelerated planning and approval processes alongside more efficient administrative workflows, investments may still fall short due to practical implementation challenges.

Translate innovations into growth more swiftly 

The Commission is particularly emphatic about competitiveness. Research results should be more rapidly translated into marketable products, entrepreneurship needs to be bolstered, and access to financing for start-ups and scale-ups improved. Moreover, Brussels demands fewer regulatory burdens and accelerated digitalisation of government administration. The analysis addresses key issues for Germany identified by the DIHK: Many companies grapple with labour shortages and bureaucratic hurdles. Additionally, the transfer of knowledge and technology between academia and the business world often proves cumbersome. In light of declining innovation activities, it is essential to promote collaborations with research institutions, expand real-life labs, and adopt an open-technology approach to funding programmes. Approval and funding processes, too, require significant acceleration. Finally, better mobilisation of private capital remains crucial to ensuring that innovative companies can scale their ideas within Europe.

Energy, networks and administration as competitiveness factors 

The Commission also identifies significant action areas in energy and infrastructure. The expansion of renewable energy, high-performance electricity and data networks, and the digitalisation of the electricity infrastructure must all be accelerated. Simultaneously, Brussels advocates modernising public administration and reducing approval bottlenecks. For the business community, these are not peripheral issues but central competitiveness factors: Competitive energy prices, efficient networks, and digital administrative processes increasingly determine whether investments are directed to Germany. It is crucial to make the energy transition cost-efficient, avoid overburdening companies with additional obligations, and continue advancing the development of European-integrated energy and electricity markets. Equally urgent is the digitalisation of administrative procedures, whose quality still scores poorly in company evaluations.

Securing skilled labour 

Finally, the Commission focuses on the labour market. Higher labour market participation, better qualifications, enhanced educational achievements, and streamlined processes for recruiting international skilled labour are essential to countering growing labour and skill shortages. The direction aligns significantly with challenges companies have been highlighting for years. However, the crucial factor will be redirecting labour market policies towards regular employment, enhancing incentives for workforce participation, and improving the framework conditions for skilled migration. Without sufficient skilled workers, neither digitalisation, decarbonisation nor innovation will gain the necessary momentum.