The EU must “tear down the barriers” standing in the way of it becoming a genuine global economic powerhouse, European Commission President Ursula von der Leyen has said, ahead of discussions among leaders focused on boosting the competitiveness of the 27-member bloc.
“Our companies need capital right now. So let’s get it done this year,” she told MEPs while setting out the main measures needed to close the gap with China and the United States, reports RTE.
“We have to make progress one way or the other to tear down the barriers that prevent us from being a true global giant,” she said, describing the current structure as “fragmentation on steroids.”
Efforts to reinvigorate the EU’s sluggish economy have gained urgency amid geopolitical upheaval, from US President Donald Trump’s tariff threats disrupting global trade to his calls to take control of Greenland from Denmark, reports RTE.
Ms von der Leyen delivered her remarks before travelling with EU leaders, including France’s Emmanuel Macron and Germany’s Friedrich Merz, to meet industry leaders in Antwerp, on the eve of a summit aimed at strengthening the bloc’s economy.
One of the central concerns flagged by the EU is that European firms struggle to secure the capital needed to expand, in contrast to competitors in the United States, reports RTE.
To address this, Ms von der Leyen said the preferred option would be for all 27 member states to move forward together, but if consensus proves impossible, the EU should explore “enhanced cooperation” among willing countries.
She argued that Europe can boost its competitiveness by “stepping up production” within the continent and “by expanding our network of reliable partners”, underlining the significance of new trade agreements, reports RTE.
Following recent agreements with the South American Mercosur bloc and India, she indicated that further deals are in the pipeline with Australia, Thailand, the Philippines and the United Arab Emirates.
Among the most significant – and contentious – ideas for strengthening the EU economy is prioritising European companies over foreign competitors in certain “strategic” sectors, a policy Ms von der Leyen backs, reports RTE.
“In strategic sectors, European preference is a necessary instrument… that will contribute to strengthen Europe’s own production base,” she said – while cautioning against a “one-size-fits-all” approach, reports RTE.
France has led calls for such measures, although some member states, including Sweden, have voiced concerns about drifting towards protectionism and have warned Brussels not to overreach.
The EU executive is also set to present next month the so-called 28th regime, or ‘EU Inc’, a voluntary framework of business rules applicable across the bloc and not tied to any single country, reports RTE.
Brussels maintains that this initiative would simplify cross-border operations for companies within the EU, as the fragmented single market is frequently cited as a factor holding back stronger economic performance.
At the same time, the commission is pursuing an extensive drive to reduce bureaucracy for businesses, which argue that EU regulations hinder competitiveness — prompting critics to accuse Brussels of diluting important legislation, particularly on climate policy, reports RTE.
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