The governance toolbox of Member States and EU institutions in a European single market and global economy has gradually become desynchronised with the (emerging) techno-economic system and the challenges which it brings. Equilibrium has been lost due to inertia typical of political-institutional systems. This is the root cause of Europe’s declining competitiveness and its wide impact.

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The governance system of the EU and its Member States was designed for predictable and controllable environments, but they have failed to sufficiently develop the required capacities and skills to adapt to technological shifts and the socio-economic transformations that the system triggered (single market and currency zone) or contributed to (globalisation). Neither the EU institutions nor most of the Member States administrations have yet undergone real systemic adaptation to the new contextual conditions and updated their political decision-making and implementing systems for new purposes. European governance has essentially remained unchanged from what it was half a century ago, stuck in the logic of traditional, top-down leadership and old regulatory trajectories seeking to control phenomena that can no longer be controlled or regulated. 

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New approaches to governance and political leadership are therefore required that build on management, orchestration and facilitation, as well as experimentation, co-creation and collaboration. They need to fully align with the current, strategic, economic challenges facing the EU. Therefore, openness and inclusiveness, agility, strategic sensitivity and the ability to adapt rapidly to a changing context are characteristics essential for governance effectiveness in times of change, such as today. The governance challenges differ radically from the ones of previous technological revolutions. The digital revolution requires not only a new economic, but also a new governance logic, adapted to the new age and new generations’ expectations.

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This HLG is chaired by Johannes Hahn, former EU Commissioner for Budget and Administration.