By Alexandra Voudouri
The European Union appears determined to win its “bet” on strengthening competitiveness amid major geopolitical and geoeconomic shifts. With a target horizon of 2027, nearly 33 years after its founding, European leaders agreed to move from an “unfinished” single market to a fully integrated one, following a strategic discussion held yesterday at the Flemish castle of Alden Bissen, near the city of Maastricht.
Despite differing political directions, priorities, and interpretations of how competitiveness should be strengthened, differences noted over the past few days across various European capitals, the 27 member states ultimately agreed, according to António Costa, President of the European Council, to accelerate the Savings and Investment Union, establish a “28th regime” for European businesses, advance digital integration, and speed up energy interconnections.
High energy prices were among the most “controversial” topics discussed, according to EU sources. After the informal council, Ursula von der Leyen emphasized the need to fast-track the electricity network package and further develop “energy highways.” She also acknowledged that prices “must be reduced” in response to urgent demands from European industries.
According to von der Leyen, there are two main drivers of high energy costs: dependence on imported fossil fuels and insufficient interconnections and networks, an issue affecting countries such as Greece. She defended the emissions trading system (ETS), which aims to cut emissions by 39%, highlighting its “clear benefits.”
The ETS is set for a major review later this year, but several leaders, including the German Chancellor and the Italian Prime Minister, have called for its implementation to be reconsidered or postponed, citing growing concerns over the cost of the green transition for industry. On the issue of electricity pricing (the “merit order”), von der Leyen noted that, as expected, no agreement was reached, though options will be presented to the European Council in March.
By then, she added, a roadmap for the new single market will be unveiled with “clear timelines and targets.” She also committed to a key demand from several leaders for further simplification of regulations and a reduction in bureaucracy, measures that “could save businesses €15 billion annually.” She announced the possibility of establishing an “EU Inc.” fully digitally within 48 hours.
Regarding the proposed 28th regime for businesses, Costa stressed that a single corporate framework is now needed to avoid “27 different legal regimes.”
If no further progress is made on strategic decisions by the 27 member states, von der Leyen said that the so-called “enhanced cooperation” mechanism would be applied, as provided for in EU treaties. This requires at least nine member states to participate and remains open to any others wishing to join later.
