Brussels – Where unanimity cannot be achieved, we must force the issue and move forward. Ursula von der Leyen‘s message ahead of the European Union heads of state and government informal summit on competitiveness is clear: we must stop being held back by those who do not want to move forward. To relaunch Europe on the world stage, we will not wait for anyone. Therefore, in the absence of shared ambitions and progress among the 27, “we should not hesitate to make use of the possibilities provided for in the Treaties for enhanced cooperation,” writes the President of the European Commission in a letter to the capitals.
The green light to the £90 billion maxi-loan for Ukraine, achieved by circumventing the vetoes of Hungary, Slovakia, and the Czech Republic, has opened Pandora’s box. Unanimity is what the Union must strive for, not a cage from which it cannot escape. And given the slowness with which Brussels is implementing the recommendations made a year and a half ago by Mario Draghi and Enrico Letta—an analysis by the European Policy Innovation Council published by the Financial Times argues that only 15 per cent of the measures have been fully implemented—the mechanism of enhanced cooperation, which allows at least nine Member States to move forward with integration on specific policies, may become more than a last resort to be used after months of fruitless negotiations.
EU heads of state and government will meet on Thursday, 12 February at the Alden Biesen Castle, some 80 kilometres from Brussels, to take stock of the simplification and competitiveness agenda drawn up by the European Commission at the beginning of its term. Antonio Costa, President of the European Council, extended an invitation to Draghi and Letta to update their reports in light of the breakdown in transatlantic relations. Ursula von der Leyen, in preparation for the meeting, summarised her past and future efforts in a letter to the leaders.
The Commission “has already presented ten omnibus packages aimed at simplifying the implementation of existing legislation, supplemented by a series of additional simplification initiatives,” claimed von der Leyen. This is estimated by Brussels to save €15 billion per year. And the EU executive’s work on reducing bureaucracy and deregulation “is far from complete,” she promised. The Commission, von der Leyen announced, will undertake “a thorough regulatory review of the EU acquis” in order to “systematically eliminate obsolete provisions, overlaps, inconsistencies, and redundant procedural requirements.”
Then there is the issue of trade agreements, on which the leader is investing much of her political capital. “Since the beginning of the current term, we have concluded trade agreements with Mexico, Mercosur, Switzerland and Indonesia, bringing the total number of countries covered by EU trade agreements to 79,” she pointed out in the letter. After India, with which von der Leyen announced on 27 January “the mother of all trade agreements,” Trade Commissioner Maroš Šefčovič has set his sights on the Indo-Pacific region and the Middle East. “Ongoing bilateral negotiations involve Australia, Thailand, Malaysia, the Philippines, and the United Arab Emirates (UAE),” von der Leyen continued.
Enhanced cooperation could prove useful on the thorny issue of completing the single market. Some capitals, particularly those with sovereignist governments, oppose any further steps towards European integration. But internal barriers to the single market, which “are equivalent to a 45 per cent tariff on goods and 110 per cent on services,” must be removed, von der Leyen stressed. This is a real shot in the foot. The risk is that of a two-speed Union, but “it is clear that we can no longer continue to operate as if nothing had happened,” because “the differences between national rules and the commercial conditions of Member States prevent businesses from realising their full potential and limit Europe’s competitiveness,” insisted the EU leader.
“Next month,” the Commission will present its proposal for the 28th regime, a new, “single and simple” legal framework that will apply throughout the Union. “We call it EU Inc.,” announced von der Leyen, “and it will allow innovative companies to operate, trade, and raise finance seamlessly across all 27 Member States.” But that’s not all: the other ingredient for boosting the EU’s competitiveness is “technological sovereignty”, independence in the supply of critical technologies. “This spring, I will present a package on technological sovereignty to further strengthen Europe’s capabilities,” von der Leyen said in the letter.
English version by the Translation Service of Withub
