EU summit in Brussels: How should Europe survive in international competition?

EU summit in Brussels: How should Europe survive in international competition?

The European Union strives to strengthen the domestic economy in order to remain competitive in the tough international competition with the United States and China. This requires a readjustment of economic policy to meet the current challenges. The heads of state and government of the 27 member states emphasized at their summit in Brussels that Europe needs economic policy change in view of geopolitical tensions and the subsidy policies of other countries.

Chancellor Olaf Scholz underlines the importance of the EU's internal market, but emphasizes that its potential has not yet been fully exploited. A special report discussed at the summit provides new impetus for easing the strict regulations in the area of ​​state economic aid in Europe. With massive subsidies given to companies in the US and China, the EU faces increasing competition, threatening its competitiveness.

The mobilization of money, be it from private investors or companies, plays a crucial role for necessary investments in key strategic areas and infrastructure. A special report by Enrico Letta highlights the importance that citizens' private savings should be kept within the EU and used for European projects in order to curb the flow of capital abroad.

Heads of state and government are pushing for an accelerated development of the Capital Markets Union in order to mobilize more private capital. Harmonizing national rules, more efficient supervision of capital markets and increasing citizens' financial knowledge are other measures to be taken to stimulate growth in Europe. Discussions about allowing more state aid and reducing bureaucracy are also part of the measures aimed at strengthening the domestic economy and increasing the EU's competitiveness.