In a world where many governments always seem to have an ace up their sleeve, the European Union seeks to improve its hand. The leaders of the Twenty-seven They meet this Thursday at Alden Biesen Castlea construction whose history dates back to the 13th century, to define what and how the block should change so that the European economy is capable of compete in the world.
The diagnosis among leaders is shared. But they need “adapt the agenda to the new geopolitical context”recognized a high community source. in a world increasingly competitive and despoticthe EU seeks to strengthen its market, support the growth of their companies and reduce their dependencies opening more markets.
“In the current geopolitical context, strengthen our single market is, more than ever, an urgent strategic imperative,” he said. the president of the European Council, António Costain his invitation to the leaders. “We see massive subsidies, state overcapacity and market distortions. This makes it increasingly difficult for European industry competes on equal terms“, acknowledged in a speech at an industry forum in Antwerp the president of the European Commission, Ursula von der Leyenthis Wednesday.
In addition to the leaders of the Twenty-seven, former Italian prime ministers will also participate in the meeting Mario Draghi and Enrico Letta. Both produced reports on how to relaunch competitiveness, the first, and how to strengthen the single market, the second, last year. According to community sources, the objective is not for Draghi and Letta to present their reports againbut rather encourage debate among European leaders.
The goals are more or less clear, but some of the measures necessary to achieve them They have been the target of discussion—and division—among the Twenty-Seven for decades.. Many things in the EU, recognized a high community source, They never change, until they change.
The menu
Costa has decided to structure the debate around two fundamental questions. The first is to determine How the EU should position itself in an increasingly competitive world, more unbalanced, where trade policy is often used as a tool of political pressure. Also for considering how can the bloc benefit from the situation. A discussion that leaders largely addressed just a few weeks ago, in response to US threats against Greenland.
The B side of this strategy looks inward. The Portuguese has invited leaders to reflect on How can the EU strengthen its internal policies with this objective. Here the debate will predictably focus on how make life easier for European companiesattract investment and protect economic operators from unfair competition.
A senior community source avoided venturing into what would come of the discussion, but acknowledged that There are some areas that attract more attention than others among the leaders. For example, the French president, Emmanuel Macronhas called again issuance of eurobonds to compete with the hegemony of the dollar in the markets and finance strategic policies.
While the Italian Georgia Meloni and the German Friedrich Merz They have organized their own parallel mini-summit, before the meeting at Alden Biesen castle, to bring positions closer together. Postures that They are notably far from Macron’s own postulates.. Regarding the increasingly common parallel summits, a community source assured that it was a sample of the “enthusiasm” of the leaders for advancing these issues.
The Commission’s proposal
Leaders will define what the priorities are and then it will be the European Commission of Ursula von der Leyen who must translate these objectives into concrete policies. “Our power on the global board depends largely on our strength on the economic front“said the German during a speech before the European Parliament.
Von der Leyen has stood out for the work of her Executive in recent months. A good part of the measures that the Commission has implemented have to do with simplification of rules—or deregulation— in certain sectors, new trade agreements with the Mercosur countries or India, or the significant increased defense investment.
The president has set herself the goal continue reducing strategic dependencies of the bloc and diversifying its commercial relations with more agreements. But above all, Von der Leyen has focused her speech on ending fragmentation in the single market when trading and attracting investment.
Easy Europe
“The IMF claims that interstate barriers in our Union are three times larger than in the United States,” said Von der Leyen. “We have the second largest economy in the world, but We drive it with the handbrake on.”he added. The German has announced that next month she will present her known as ‘regime 28’ to make it easier for companies to register in any country of the block. A strategy that he has defined as “the Europe that makes it easy.”
This same fragmentation also affects financing. “Not only we have 27 financial systems different, each with their own supervisor, but also more than 300 trading centers throughout the Union,” said the president. “We need a large, deep and liquid capital market”he added.
But this is perhaps one of the thorniest questions. Europeans wear years trying to complete the capital market union without success. That is why Von der Leyen has raised another of the fundamental questions in the leaders’ debate. “Plan A is to advance to 27. But if this is not possible, the Treaty allows for enhanced cooperation,” he said. That is, accept, again, Europe at various speeds.
Another issue that the German has put on the table and also causes division among leaders is the so-called “European preference.” That is to say, favor ‘made in Europe’. In strategic sectors, Von der Leyen has said, “the European preference is a necessary instrument that will contribute to strengthening Europe’s productive base“Although it has also been prudent, clarifying that it must be evaluated on a case-by-case basis.
The retirement of leaders
Although only the walls remain from the original construction, perhaps the opposite of the European Union, Alden Biesen “was a center of power, wealth and religious influence”. In that impressive castle destroyed in a fire in 1971, the leaders of the bloc meet this Thursday to an informal summit focused on strengthening European competitiveness.
The president of the European Council, António Costa, has made this type of summit a tradition. Around the same dates, the leaders met last year in the Egmont Palace in Brussels. So, the priority was to strengthen the Union’s defense policy. With that work on track, Costa now looks to the economy.
Costa prioritizes this type of summit the dialogue about the resultsbut hopes to leave the meeting with a series of concrete initiatives that have the political support of the leaders. A senior community source defended the format. “Creating this atmosphere works”he assured, pointing to last year’s results. “These meetings can help create consensus although they are not a miraculous solution,” added the same source.
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