As 2023 rapidly kicks in, one thing is crystal clear: without peace, there can be no prosperity.

Losing Ukraine now is unimaginable. The ramifications for Europe and indeed the whole democratic world would be enormous. Losing Ukraine now would send an unequivocal message that aggression and tyranny pays.

We are now at a stage whereby we must do ‘whatever it takes’ to ensure that Ukraine can protect its territorial integrity and repel the Russian aggression. The situation is likely to become more dramatic in the coming months and therefore we must brace ourselves for what is to come.

While we continue to do all we can to help Ukraine, we must also continue to push for the EU’s recovery, which must be based on a competitive economy and a fully revamped Single Market.

The European Employers’ Group in Brussels, which I have the privilege of leading, has been assertive in its work on the Future of Europe, during which we strongly called for a more decisive focus on competitiveness, and more specifically, we called for the creation of a competitiveness check which should be carried out before any new legislation or policies are introduced.

It is indeed very positive that the European Commission and the Czech and Swedish EU presidencies have now formally taken up this suggestion, and indeed this instrument is being prepared as we speak. Competitiveness however cannot be a fad or some temporary buzzword.

It is becoming increasingly clear to all that the EU must adopt a Competitiveness Agenda that centres on the sustainability and strength of enterprise. It beggars belief that the last time Europe put forward an economic vision was over 20 years ago with the Lisbon Agenda.

Having one of the most open economies in the world means that Malta can only survive if it is competitive- Stefano Mallia

And it is here where I believe Malta can already take the lead. Having one of the most open economies in the world means that we can only survive if we are competitive.

In view of the fact that the European Commission will very soon be launching the idea of introducing a competitiveness check, it would indeed be opportune for Malta, through the MCESD, to already start formulating its views on such an instrument and even be the first to introduce it formally in its legislative process.

We must, however, maintain a sense of urgency. We cannot allow ourselves to be lulled into a false sense of ‘business as usual’, because these are extraordinary times, and such times call for extraordinary measures. The competitiveness check has to be incorporated into the wider debate on a competitiveness agenda.

Businesses of all sizes across Europe face an existential threat as a result of the unprecedented energy crisis. They are also struggling with record shortages of skilled labour, the many and various requirements of the green and digital transitions, and now face the prospect of higher borrowing costs and lower consumer demand.

The imminent threat of production losses, the permanent relocation of energy-intensive industries to non-European countries, and the closure of thousands of European companies cannot be ignored.

Against this backdrop, we must step up efforts to develop an ambitious and forward-looking agenda that takes due account of the needs and concerns of business, not only to mitigate the effects of the energy crisis in the short term, but above all to strengthen Europe’s competitiveness and resilience, enhance its global influence and ultimately create a favourable environment for businesses to operate and thrive, creating jobs and boosting growth and prosperity.

Now is the right time to push for the competitiveness agenda to be made a top priority. Sweden, which has now just taken the helm of the EU presidency, ranks in the top 10 of the world competitiveness index and is well placed to take on the very important work done by the Czech presidency and to drive this agenda forward.

In a world rife with uncertainty, there is one thing we can be sure of: without a prosperous and competitive economy, the social well-being of our society is at serious risk. And this is a reality that Malta must face up to as well.

Stefano Mallia is the president of the Employers’ Group at the European Economic and Social Committee in Brussels.