BUDAPEST, Nov. 8 (Xinhua) -- The Budapest Declaration on the New European Competitiveness Deal was adopted Friday at an informal European Council meeting in Budapest, outlining a strategic framework aimed at enhancing the European Union(EU)'s global economic standing via targeted reforms and initiatives.

One of the top priorities agreed by EU leaders is to ensure a fully functioning Single Market, unlocking its full potential as a "key driver for innovation, investment, convergence, growth, connectivity and economic resilience."

Another central component of the declaration is its commitment to a "simplification revolution" to reduce administrative burdens on businesses. By mid-2025, the EU plans to decrease reporting obligations by at least 25 percent, fostering a more conducive environment for enterprise and innovation.

The declaration also emphasizes the need for urgent measures to mitigate energy prices, which place European companies at a competitive disadvantage compared to the US enterprises. In addition, it also highlighted the establishment of a comprehensive industrial policy, with a pledge to allocate 3 percent of the EU's gross domestic product to research and development by 2030, underscoring a commitment to innovation and technological advancement.

At a press conference on the declaration, European Commission President Ursula von der Leyen emphasized the importance of innovation, saying: "We are excellent in basic research, but there is a gap in turning research outcomes into products and scaling them up in the EU."

Decisive steps must be taken towards a Savings and Investments Union by 2026, the declaration underlines, advocating for the full implementation of the Capital Markets Union (CMU).

The CMU initiative launched in 2015 aimed at creating a unified and deeper capital market across EU member states, while the declaration aims to mobilize private savings for productive investments, seeking to unlock capital for high-tech and innovative sectors.

To ensure that new legislative measures align with competitiveness objectives, the EU leaders agree to include "competitiveness impact assessments" on forthcoming EU proposals.

"We also agreed that every new legislative proposal must include an assessment, what we call a 'competitiveness test,' to see its impact on competitiveness," von der Leyen explained.

The declaration also proposes the creation of a European defense industrial base, reflecting a strategic approach to bolstering the EU's defense capabilities and industrial autonomy.

Speaking at the press conference, European Council President Charles Michel said that as NATO remains a fundamental pillar, the EU clearly needs to boost the development of an independent European defense industry.

Meanwhile, Hungarian Prime Minister Viktor Orban, whose country currently holds the rotating EU Council presidency, underscored the urgency of strengthening EU competitiveness.

"The EU's growth has been persistently slower than China's or the United States's in the past two decades," he noted, advocating for immediate action to reverse this trend and enhance the EU's global economic standing.

The informal meeting of EU heads of state and government followed the fifth European Political Community summit. Their discussions covered key topics aimed at strengthening the EU's economic competitiveness, tackling foreign policy challenges, and deepening transatlantic relations. Enditem

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