The Competitiveness Council works to enhance competitiveness and increase growth in the EU. It deals with four major policy areas: internal market, industry, research and innovation and space. Depending on the agenda, the Competitiveness Council brings together ministers responsible for trade, economy, industry, research and innovation, and space from all member states. Meetings take place at least four times a year.

In the internal market, the Council as law-maker works to remove barriers that hinder cross-border flows of products, labour, capital and services. The Council works to improve the business environment, especially for SMEs. It does so by co-legislating on specific measures aimed at SMEs such as improving access to funding, cutting red tape and fostering innovation.

On research, innovation and space, the Council aims to strengthen the scientific and technological base of European industry, thus boosting its international competitiveness and driving growth and jobs. It is also working with the European Space Agency (ESA) to develop European space policy.