Kathimerini Greece Newsroom
By Alexandra Voudouri
The President of the European Commission, Ursula von der Leyen, defended the strategy of “European preference” (“Made in Europe”) before the plenary session of the European Parliament, stressing that strengthening Europe’s industrial base is a crucial tool for boosting the Union’s competitiveness.
However, she warned that this is a delicate balancing act, as there is no one-size-fits-all solution. Ahead of the informal meeting of European leaders, which will take place tomorrow in Belgium with the strengthening of European competitiveness as the main topic, von der Leyen announced that she intends to soon propose a roadmap for the single market through to 2028. The plan will include a clear timetable for the steps required to deepen the EU single market.
Since the concept of “European preference,” promoted primarily by Paris, appears to be viewed with caution by several member states such as Germany, Italy, and Sweden, which argue that it could lead to unnecessary protectionism, especially given the current geopolitical climate, the Commission President made her own intervention by emphasizing that she supports strengthening Europe’s productive base.
At the same time, she underlined that any proposal must be grounded in solid economic analysis and be fully compatible with the EU’s international obligations, indirectly referring to the bloc’s trade agreements. In other words, the Commission is seeking strategic support for European production, but not broad, generalized protectionism.
A “two-speed” Europe if unanimity is not possible
Von der Leyen noted, as she had recently done in her letter to European leaders ahead of the Council meeting, that the goal remains to move forward together as a Union of 27 member states. However, if unanimity cannot be achieved, the Treaties allow the use of “enhanced cooperation,” enabling a group of countries to advance more quickly.
“We must move forward and remove the obstacles that prevent us from becoming a true global giant,” she said, aligning closely with Berlin, which has recently been pushing this approach.
Two weeks ago, in fact, at Germany’s initiative, the finance ministers of Germany, France, Italy, the Netherlands, Poland, and Spain launched a new coalition called E6 to push for decisive action and rapid progress in four strategic areas, including defence and supply chains. “We are providing the momentum, and other countries are welcome to join us,” said Germany’s finance minister, Lars Klingbeil.
The idea of a “two-speed” Europe, however, does not have the support of all member states, even though the EU already operates in this way in certain institutional areas, such as the Eurozone.
Fragmented capital markets
Von der Leyen also stressed the need to deepen European capital markets, again pointing to the United States as a model. Unlike the unified American market, Europe has 27 different financial systems and more than 300 trading venues.
The Commission’s aim is to create a large, deep, and liquid capital market through the Savings and Investments Union, making it easier for businesses to access financing and strengthening innovation across the bloc.
The “28th regime” and removing internal barriers
Von der Leyen also argued that barriers within the single market are three times greater than those found within the United States. “We are the second largest economy in the world, but we are driving with the brakes on,” she said.
In this context, she announced that in March the Commission will present a proposal for the so-called “28th regime,” also referred to as “EU Inc.” This would create a unified framework allowing businesses to be established and operate across the EU through simplified procedures. In theory, all member states support this proposal, since it would mainly benefit small and medium-sized enterprises. However, some countries, such as Estonia, have pointed out that it would require harmonisation of certain rules, including those related to taxation.
Energy union and strategic dependencies
On an issue of particular interest to Greece, von der Leyen stressed that energy prices remain excessively high and volatile. She attributed this to the lack of interconnections and Europe’s continued dependence on fossil fuels.
She warned that economic dependencies can be turned into weapons of coercion.
For this reason, she argued in favour of strengthening strategic value chains, either by increasing European production or by expanding the Union’s trade network with reliable partners.
Simplification and less bureaucracy
On the issue of reducing overregulation, which most member states have called for, von der Leyen stressed that additional layers of national legislation create new barriers within the single market.
Simplification, she said, is vital for competitiveness and requires coordinated action at both the European and national levels.
Overall, the Commission President outlined a strategy aimed at striking a balance: strengthening European industry and strategic autonomy, while still remaining committed to open, rules-based international trade.
Read this article in its original Greek here.
