The EU Strategy to Compete with the U.S. and China: Opportunities for Entrepreneurs and Business

The European Union has launched a series of key strategies to strengthen its global competitiveness against the United States and China. These initiatives seek to consolidate the region's strategic autonomy, promote innovation, and generate opportunities for entrepreneurs and startups looking to expand in the European market. For those looking to optimize their business structure and take advantage of tax incentives, this is a key moment to analyze the advantages offered by the EU.  

1. The "Competitiveness Compass": Innovation, Security, and Sustainability

The European Commission has introduced the Competitiveness Compass, a strategy focused on three fundamental pillars:  

• Innovation: The EU seeks to create a more favorable ecosystem for startups and foster industrial leadership in emerging technology sectors. Initiatives such as AI Gigafactories are being developed to boost European technological growth.  
• Security: With the aim of reducing strategic dependencies, the EU is promoting local manufacturing of essential components and ensuring the supply of critical raw materials.  
• Sustainability: The transition towards a greener economy is central. This opens up opportunities for companies working in digitization, renewable energies, and the circular economy.  

Entrepreneurs who align their business models with these priorities will be able to benefit from financial incentives and subsidies aimed at strengthening European industry.  

2. Global Gateway: International Expansion for European Companies

The Global Gateway program is the EU's response to China's Belt and Road Initiative. With an investment of up to 300 billion euros by 2027, this plan seeks to promote digitization, transport, and energy in emerging markets. For European companies, this means new expansion opportunities in strategic sectors with the institutional backing of the EU. Companies operating in international trade can benefit from strategic partnerships in infrastructure, renewable energy, and digital connectivity, which facilitates expansion to markets outside Europe with fewer regulatory barriers.  

3. Fund for European Sovereignty: Financing for Strategic Companies

One of the biggest challenges for startups and growing companies is financing. The EU has proposed the Fund for European Sovereignty, whose objective is to provide financial support to companies operating in key sectors such as technology, energy, and advanced manufacturing. This fund seeks to reduce dependence on foreign investments and foster the consolidation of strategic industries in the EU. For entrepreneurs, this represents a potential source of financing to scale operations without resorting to foreign venture capital that could compromise the company's autonomy.  

4. Tax Advantages in the EU: Keys to Optimizing the Business Structure

One of the most attractive aspects for entrepreneurs and companies seeking to expand in the EU is access to favorable tax regimes. Depending on the structure and location of the company, it is possible to significantly optimize the tax burden. Some key strategies include:  

• Structuring in Estonia: With an innovative tax system where companies only pay taxes on distributed profits, Estonia has become an attractive destination for tech startups and digital entrepreneurs.  
• Ireland and its 12.5% Corporate Tax Rate: For companies with a high volume of turnover, establishing operations in Ireland can provide considerable tax benefits.  
• Luxembourg and Holding Companies: Ideal for the management of international investments and assets.  

With the evolution of the European tax framework, understanding these incentives can make the difference between a financially efficient company and one that loses competitiveness.  

5. Digital Decade 2030: Business Growth in the Digital Age

The EU is promoting the Digital Decade 2030, a roadmap that seeks to digitize strategic sectors and foster technological transformation. This represents a great opportunity for companies that develop software, artificial intelligence, cybersecurity, and digital services. The keys to this initiative include:  

• Development of digital skills: Training programs to improve the competitiveness of the workforce.  
• Promotion of AI and cloud computing: Subsidies and support for companies that innovate in these fields.  
• Digital infrastructure: Greater connectivity and development of data centers in Europe.  

Startups that adopt these trends will be better positioned to access European markets and receive institutional support for their growth.  

Conclusion: How Entrepreneurs Can Benefit from the EU Strategy

The EU is in full transformation to compete with the U.S. and China, and in this process, it is generating enormous opportunities for entrepreneurs and startups. From financing and tax advantages to support in international expansion and digitization, the European environment offers multiple incentives for those who know how to take advantage of them.  

At EmpresAegis OÜ, we help entrepreneurs structure their businesses efficiently, optimizing their presence in Europe and ensuring access to the available tax and financial benefits. If you are considering expanding your company in the EU, this is the ideal time to explore new strategies and consolidate your growth in a highly competitive market.