As of January 2026, just 15.1 % Mario Draghi's report on competitiveness recommendations have been implemented, 23.8 % were partially implemented and 61.1 % have not been implemented. The implemented parts are not covering the most concerning ones of the report: those aiming at a deeper integration of the EU.
Enrico Letta's report Much more than a market drafts how to make the single market updated to the new challenges of today. Also in this case no substantial progress has been made.
Today Europe stands between an untrustworthy ally, a dangerous enemy at its door, and another ruthless rival. Yet Europe remains structurally incapable of acting at the necessary scale. In this context, national leaders met at Alden Biesen castle with the aim of delivering solutions to strengthen the single market, reduce dependencies from external actors in key sectors and increase EU competitiveness.
We welcome the proposal of the Commission One market for one Europe to set up an action plan to implement major reforms. This is politically important. Fragmentation is our greatest weakness. But we need real harmonisation and not just mere coordination. If not all 27 member states are ready to move forward immediately, enhanced cooperation must remain a legitimate and constructive path. European integration has always advanced through pioneers as demonstrated by Schengen and the euro. These positive effects have always eventually strengthened the Union as a whole.
To make Europe stronger, its economy must become stronger and operate at a continental scale. We do not need more reports diagnosing the problem, the challenges are well known. What we need now are concrete decisions, clear timelines, and structural reforms that remove fragmentation and enable Europe to act decisively.
The economic environment has fundamentally changed since many of the current rules were designed. In a world of geopolitical competition, what matters are economies of scale. To enable European companies to scale up across the continent, we need a 28th regime, EU-wide corporate law. We need a EU inc. framework that allows businesses to operate under a single set of rules throughout the Union. The 28th regime must meaningfully reduce regulatory fragmentation and provide legal certainty, simplicity and efficiency. It must become a credible and attractive alternative to national regimes.
The high reliance of the Ukrainian army on a private provider of satellites and internet infrastructure, such as Starlink, shows clearly how sovereignty is strictly linked to technological sovereignty. Europe cannot depend on non-European companies for critical tech infrastructure. We therefore urge European leaders to accelerate the development of a European tech stack and strengthen strategic autonomy in digital infrastructure.
The reforms signalled by the European Council regarding telecommunication competition policy are a step in the right direction. Europe must allow for continental scale in all strategic sectors. The EU must think like a continental economy, not a collection of national markets.
To achieve everything outlined in this note, we need to unleash capital through the European Union and break internal barriers. It is of primary importance to build the Savings and Investment Union. A single capital market is essential for scale, innovation and European sovereignty.
The EU budget is around 1% of its GDP. This is too small, if compared to an average of 46.3% for OECD countries. To make Europe able to back its ambitions, a permanent fiscal capacity at EU level is needed. NextGenerationEU demonstrated that the Union can borrow collectively and invest strategically when necessary. This must not remain an exception. The EU requires a permanent fiscal instrument to finance common European goods.
We call for integration and the completion of a real Energy Union. In the future, energy markets should transcend the borders that currently lead to expensive energy and inefficient production. The focus on member state specific solutions is not the pragmatic solution as it reinforces fragmentation.
Simplification should not be a pretext for deregulation. Competitiveness can not be built on a regulatory race to the bottom. Europe suffers from 27 different regulatory regimes. What we need is deeper harmonisation, stronger enforcement at European level, and the elimination of national fragmentation that prevents our companies from scaling across the Union.
The European Council in Alden Biesen has been a constructive meeting point between leaders, and we welcome the shared sense of urgency. However, the solutions discussed remain largely intergovernmental in nature. Europe’s challenges are structural. Therefore we need institutional reform that equips the Union with the capacity to act decisively and democratically.
We are confident that progress can be made at the next European Council, whether by all 27 member states or through enhanced cooperation among those ready to move forward. Although this progress could seem big now, without a real structural institutional change, ensuring that decision making is effective and democratic representation is ensured, even this progress will not be enough.
We therefore call on our leaders to open the path toward treaty change. The EU cannot aspire to act as a continental power while operating under unanimity rules designed for a different era. Strengthening supranational governance is essential to improve Europe’s capacity to act.
A stronger Europe requires federal institutions capable of delivering on the ambitious reforms discussed today for the market and our citizens.
Lisätietoja:
Pieta Päivänen
Puheenjohtaja