Brussels – European Union leaders are charting a course toward a deeper single market, aiming for completion by , but the path forward may involve a “two-speed Europe” where member states can integrate at different paces. The push for greater competitiveness comes amid rising geopolitical fragmentation, concerns about declining economic standing, and pressure from both China and the United States.
The informal summit, held at Alden Biesen castle, saw leaders agree to move “from an incomplete single market to a market for Europe,” according to European Commission President Ursula von der Leyen. European Council President Antonio Costa stated the goal is to achieve this integration in and .
Von der Leyen signaled openness to a multi-tiered approach, allowing a group of countries to advance integration in areas like capital markets through “enhanced cooperation” if a consensus among all 27 member states proves elusive. “We often move at the speed of the slowest,” she explained, suggesting this mechanism could circumvent roadblocks. This echoes a sentiment that the EU needs to be more agile in responding to global challenges.
A key component of the competitiveness drive is a focus on bolstering European industry, with plans to complete a 28th regulatory framework for businesses this year. Leaders also discussed consolidating the telecommunications sector to create “true champions” in a strategically important industry, according to Costa.
The urgency stems from a confluence of external pressures. China’s “anti-competitive” trade practices and tariffs imposed by the United States are prompting the EU to seek greater strategic autonomy. Brussels is preparing a proposal to promote “made in Europe” products in key sectors, with a detailed analysis to identify areas where intervention is necessary.
French President Emmanuel Macron has been a vocal advocate for prioritizing European-made goods, calling for a concrete action plan from Brussels. He highlighted the increasing pressure from China and the US, as well as “coercive practices.” A Franco-German agreement on the union of capital markets is a significant step in this direction.
The Paris-Berlin axis is reasserting its influence as a driving force within the EU. German Finance Minister Friedrich Merz urged concrete decisions at the upcoming March summit to enhance European industrial competitiveness. However, France and Germany reportedly differ on the extent to which preference should be given to European products in public procurement and private purchasing, particularly in strategic sectors.
The European Commission is considering expanding its “made in Europe” proposal to include strategic allies and like-minded partners as part of the forthcoming Industrial Acceleration legislative package.
The protectionist leanings championed by Paris have met with resistance from Berlin, Nordic countries, and Italy. While Costa indicated broad support for boosting European production, potential tensions remain.
Economic Headwinds and Calls for Investment
The push for competitiveness comes as concerns mount about the EU’s economic outlook. The Prime Minister of Belgium, Bart de Wever, warned of the risk of losing the European petrochemical and metal industries, stating that failure to address this would jeopardize overall competitiveness. He called for monthly proposals from the Commission to stimulate growth.
Former Italian Prime Minister Mario Draghi, author of one of the roadmaps for boosting European competitiveness, cautioned that the economic landscape has deteriorated since his report was published. He urged increased investment, reiterating his call for €800 billion in funding. Draghi also advocated for progress on the single market, reducing fragmentation, and lowering energy costs, and supported the use of enhanced cooperation to move forward, even if it means a two-speed approach.
Diplomatic Friction
The discussions were preceded by a meeting of 20 member states, organized by Italy, Belgium, and Germany, from which Spain was reportedly excluded. Spanish sources expressed dissatisfaction with the lack of an invitation, arguing that such initiatives undermine the fundamental principles of the EU. However, the Belgian Prime Minister, Bart de Wever, claimed that Spain had been invited, and simply chose not to attend. The meeting, which included Austria, Bulgaria, Cyprus, Croatia, Denmark, Finland, France, Greece, Luxembourg, Netherlands, Poland, Czech Republic, Romania, Slovakia, Sweden and Hungary, aimed to address competitiveness issues.
The leaders are attempting to navigate a complex landscape of competing priorities and national interests. The commitment to completing the single market by represents a significant ambition, but the potential for a two-speed Europe underscores the challenges of achieving consensus in a bloc of 27 diverse economies.
