The European Union must move faster and with greater ambition to strengthen its competitiveness, reinforce the Single Market and protect strategic sectors, according to European Council President António Costa and European Commission President Ursula von der Leyen. Their statements followed the conclusion of the informal summit held at Alden Biesen Castle in Belgium.
Both leaders signalled that concrete decisions are expected at the European Council meeting in March.
Competitiveness as a strategic necessity
António Costa underlined that the European Union stands at a critical juncture and that strengthening competitiveness is no longer a choice but a necessity. He stated that EU leaders agreed to advance specific decisions at the March European Council.
He acknowledged that despite significant achievements over recent decades, the Single Market still presents serious gaps and fragmentation. Completing it, he said, is a key precondition for increasing productivity and supporting sustainable growth across the European Union.
Particular emphasis was placed on the so-called 28th regime for businesses, with Costa noting that there is a shared will to move forward swiftly this year so that companies can operate in the same way across all 27 Member States.
European preference and trade policy
Regarding the concept of “European preference”, Costa indicated that there is broad agreement for it to be used in selected strategic sectors, in a proportionate and targeted manner, following in-depth analysis.
He also stressed consensus that Europe must remain open to trade. According to Costa, an ambitious but realistic trade policy, with emphasis on diversification, serves the common European interest.
Investment gap and financial tools
“There can be no competitiveness without more investment,” Costa stated, highlighting what he described as a serious investment deficit facing Europe.
Discussions at the summit focused on mobilising private capital, with unanimous support for accelerating the Savings and Investment Union. At the same time, he noted that public investment will also play a decisive role. Appropriate European instruments, he said, will need to be identified within the framework of negotiations for the new Multiannual Financial Framework.
Commission roadmap and enhanced cooperation option
Ursula von der Leyen presented what she described as a roadmap of Commission initiatives to strengthen competitiveness, under the motto “One Europe, One Market”.
She stated that there is agreement for the first phase of the Savings and Investment Union, which includes market integration, supervision and securitisation, to be completed by June. She warned that if sufficient progress is not achieved by then, the Commission is prepared to consider the option of enhanced cooperation, allowing a group of Member States to move forward more quickly.
Von der Leyen also emphasised the need to create “European champions”, stating that Europe must have companies capable of competing globally. In this context, she announced that the plan for new merger guidelines will be presented in April and will be subject to consultation with Member States. She noted that the rules should take into account the global market and not only the European one.
In addition, she announced that the Industrial Accelerator Act will be presented before the next European Council. The proposal will include the concept of European preference in strategic sectors.
Energy prices and carbon market debate
Energy was identified as a central issue. Von der Leyen stated that the strategy is based on strengthening infrastructure and cross-border networks, as well as addressing market design and the pricing mechanism. The matter is expected to be discussed further at the next European Council.
The summit featured intense discussions on energy prices. Several countries, including Italy, called for reform of the European carbon market, arguing that the system penalises industry and requesting the suspension of the gradual phase-out of free CO2 emission allowances.
Overall, the discussions highlighted the need for a faster, more coordinated and strategically oriented European Union, capable of competing globally and safeguarding its interests in relation to the United States and China.