Discover some of the key insights from Mario Draghi’s report: “The Future of European Competitiveness.”
The shortage of STEM skills is a critical barrier to the EU’s competitiveness and innovation capabilities. This issue is highlighted in Mario Draghi’s long-awaited report, ‘The Future of European Competitiveness,’ which sets the tone and priorities for the new mandate of the European Commission (2024-2029). At ANE, we’ve been concerned about the shortage of STEM skills in Europe for a long time, so it’s a relief to see this issue finally getting the political attention it deserves in the report.
Europe faces slow productivity growth, struggles with insufficient investment in research and breakthrough innovation and has persistent skills shortages across various sectors, hindering innovation and technology adoption. Many EU companies report difficulties in finding employees with the right skills, particularly in STEM fields. This skills gap is exacerbated by demographic changes, including a declining labour force.
Draghi notes that skills shortages could hinder Europe’s efforts to decarbonize its economy, as new skill sets and job profiles will be required to support the transition to a greener economy. Similarly, these shortages can hinder innovation and the adoption of new technologies. Companies may struggle to implement advanced technologies or improve processes without employees who have the necessary skills, which can affect the overall productivity and competitiveness of Europe.
In his report, Draghi highlights the critical importance of STEM skills in driving innovation and competitiveness within the EU, particularly in the context of clean technology and the digital transition. Here are some focus areas and solutions Draghi points out:
- Reskilling and Upskilling: Draghi emphasizes the need for reskilling and upskilling the workforce to meet the evolving demands of the labour market. This includes preparing workers for roles that require advanced STEM competencies, particularly in sectors like clean technology.
- Strategic Overhaul of Skills Approach: The EU should overhaul its approach to skills development, making it more strategic and focused on emerging skill shortages. This includes enhancing the use of skills intelligence to better understand and act on existing skills gaps.
- Education and Training Programs: To address the skills gap, Draghi suggests aligning educational programs with industry needs, particularly in STEM fields. This ensures that graduates possess the necessary skills to contribute effectively to the workforce.
- Attracting Talent: Draghi discusses the importance of attracting talent with strong STEM backgrounds to support the EU’s strategic goals in clean technology and innovation. This includes facilitating work permits for skilled professionals in critical segments.
- Diversity in STEM: There is a need for greater diversity in the workforce, particularly in STEM fields, to enhance innovation and competitiveness. Initiatives to promote inclusivity are essential.
According to Draghi’s report, the EU needs a minimum annual additional investment of EUR 800 billion and a strong governance framework to boost the coordination and implementation of the competitiveness priority areas. At ANE, we urge the new Commission to keep on its promises to develop a STEM Education Strategic Plan, as outlined in Ursula von der Leyen’s political priorities for 2024-2029. While education falls under national competence, STEM skills shortages cannot be regarded as merely an Education issue. It is a cross-sectoral issue. The plan should include specific, measurable goals and key performance indicators to track progress and outcomes in member states, with a dedicated body to oversee the strategy, ensuring coordination among various stakeholders.
Without a strong emphasis on developing and retaining STEM talent, Europe risks falling behind in the global race for technological leadership and economic sustainability. The success is also dependent on political will and commitment. It becomes obvious that addressing STEM skills shortages should be a distinct and recurring agenda item at the meetings of the EU Heads of State.
While we at ANE are relieved that Draghi’s report is giving this issue the political attention it deserves, we remain concerned about the pace and commitment of member states to implement the necessary initiatives. The EU urgently needs a STEM Resilience Strategic Plan!
Download the reports
- The future of European competitiveness – A competitiveness strategy for Europe
- The future of European competitiveness – In-depth analysis and recommendations
We also invite you to explore our preliminary list of suggestions for an EU STEM strategy. Please note that this is a brief overview, and our comprehensive set of recommendations will be available in November.