European startups call for a more integrated single market in declaration

Associations of European startups called for more integration of the EU’s single market to better support innovators in a political declaration, on Thursday (30 May).

Released seven days before the European Elections, June 6-9, underscores the importance of innovation for the bloc’s competitiveness on the global stage.

“Europe must turn from a regulatory power to a brave innovation superpower, which relies on an open society for people around the world,” the declaration states.

Signatories include startup associations from Germany, France, Italy, Spain, Poland, The Netherlands, Bulgaria, Denmark, and Finland, as well as the global association Allied for Startups. A host of notable founders, such as BlaBlaCar’s Fédéric Mazzella, Sumup co-founder Marc-Alexander Christ, and Neuroelectronics co-founder and CEO Ana Maiques also signed the letter.

Integrating the EU’s single market

European innovators call for a “right to stay” in the EU, advocating a more integrated single market, where entrepreneurs and companies succeed without relocating abroad.

Yet excessive regulation could impede growth, said Miguel Ferrer Jiménez, strategy director at Adigital and Agata Hidalgo, public affairs lead at France Digitale, talking to Euractiv.

“European innovators have a lot of dependencies on raw materials, infrastructure and technology sold by foreign companies,” added Hidalgo.

This situation “cannot be solved by regulation only,” continued Hidalgo, but by renegotiating partnerships and ensuring European companies compete and grow in a truly integrated single market.

“The Commission understands the importance of productivity through technology,” added Ferrer Jimenéz. But the “tsunami” of digital regulation passed during the past mandate  “will affect the process to build European Tech Champions,” he said.

Support for innovators

European startups at their different stages are key in promoting “a stronger EU” and “a tool for improving its competitiveness and economic growth,” said Ferrer Jiménez.

The signatories support the EU’s pre-existing priorities of the green and digital transition, and the newer push for common defence.

But the startups advocate for “concrete private and public investments” and “proactive strategies” for technology transfers between EU countries, beyond national interests.

The EU should invest €500 billion annually to bridge the green and digital transitions’ investment gap, said former European Central Bank President Mario Draghi in February.

The EU needs to invest between €650 billion and €1 trillion more annually, said France’s President Emmanuel Macron in his Sorbonne II speech on Europe, citing Enrico Letta’s report on the future of the single market.

“In order to build European champions, we need to increase funding schemes for those high growth tech companies that are transforming their sectors,” added Ferrer Jimenéz.

Social goals

The declaration calls on politicians to promote a democratic, inclusive and diverse Europe.

“We understand the word inclusive as including everyone irrespective of their age, origin or gender,” said Hidalgo to Euractiv.

The document emphasises the need for “a Europe that is open to foreign talents,” and capable of “skill[ing] its existing workforce for the innovations to come,” while remaining an attractive place to work, thanks to its social-democratic model.

“On migration, top notch innovating companies are still missing more involvement from the EU and the member states in attracting foreign talents,” added Ferrer Jiménez.

He highlighted the need for a more integrated Europe where competitiveness, social cohesion, and environmental protection are non-negotiable goals.

The declaration also calls for social justice, advocating for wealth to be “shared fairly between urban and rural areas.”

[Edited by Rajnish Singh]

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