As EU leaders meet for the informal European Council tomorrow, Europe faces a decisive moment. In an increasingly geopolitical global economy, competitiveness is no longer defined solely by economic performance, but by Europe’s capacity to innovate, secure critical supply chains, invest in future technologies, strengthen democratic resilience, and act collectively on the global stage. In this context, Europe’s greatest competitive advantage remains its unity: only by acting together can the Union match the scale and speed of global competitors. 

One and a half years after the publication of Enrico Letta’s report on the future of the Single Market and Mario Draghi’s report on the future of European competitiveness, their diagnosis remain relevant and pertinent: fragmentation between Member States, insufficient coordination and ambition, and the slow pace of implementation continue to limit the EU’s ability to fully leverage the strength of its Single Market. The challenge facing the Union is therefore not one of direction, but of ambition and delivery at scale through unity. As Mario Draghi has recently warned, Europe must move towards a “genuine federation” if it is to avoid the risks of deindustrialisation and long-term decline. 

Our recommendations 

To strengthen Europe’s competitiveness through unity, resilience, and strategic openness, EU leaders should: 

• Deepen the Single Market, including the creation of a fully integrated Digital Single Market, removing persistent cross-border barriers that prevent European firms from scaling and innovating across the Union; 

• Strengthen Europe’s collective investment capacity, including the development of a stronger Savings and Investment Union, expanded joint borrowing instruments, and the creation of a new European sovereign investment capacity aligned with strategic priorities; 

• Accelerate joint European investment in strategic sectors, including clean technologies, advanced manufacturing, digital infrastructure, and critical supply chains, while recognising decarbonisation as a core pillar of Europe’s long-term competitiveness and strategic autonomy; 

• Preserve and strengthen the European social model, ensuring upward convergence in working and living conditions, large-scale investment in skills, and just transition policies that reinforce social cohesion as a competitive advantage; 

• Diversify and deepen partnerships with democratic, like-minded economies, strengthening trade and diplomatic engagement while reinforcing the multilateral rules-based order; 

• Simplify regulatory frameworks while ensuring clarity, predictability, and consistent implementation across Member States and maintaining the high social, environmental, and digital standards that underpin Europe’s global leadership; 

• Promote European standards globally, positioning the Union as the leading global standard-setter in climate policy, sustainable finance, and trustworthy digital governance. 

In a world shaped by geopolitical competition and technological transformation, Europe cannot afford fragmented national approaches. Competitiveness will depend on the Union’s capacity to invest together, act together, and lead together. Europe’s strength lies not only in the size of its market, but in the power of its unity.  

For more details, please see HERE our policy position on the future of European competitiveness.