In recent years, the European Union (EU) has faced increasing competition from other global economic powers, leading to a call for a more unified and coordinated approach to improve competitiveness and strengthen the internal market. Enrico Letta, the former Italian Prime Minister, has taken this challenge head-on by proposing a new pan-European fund to finance such investments.
Letta’s proposal was presented to the heads of state in Brussels during an ongoing meeting focused on improving the EU’s competitiveness and enhancing its internal market. In his report, Letta argued for a comprehensive internal market strategy that would help remove existing trade barriers and boost competitiveness across all member states. He also expressed concerns about the unequal distribution of state aid among EU countries, with some providing more subsidies than others. To address this issue, Letta suggested creating a state aid assistance mechanism that would provide greater equality in funding.
The Confederation of Business and Industry in Finland has also weighed in on this issue, calling for the implementation of a financial instrument to strengthen competitiveness and increase investment opportunities within the EU. Letta acknowledged the need for political tools similar to those used in the US to develop industrial strategies at both national and regional levels. However, he emphasized that addressing political disagreements within the EU is essential to move forward with these ideas.
Bruegel, a Brussels-based think tank, reacted positively to Letta’s report by calling it a convincing argument for a deeper and wider internal market. Suomen Yrittäje, a Finnish organization representing businesses, also expressed support for Letta’s proposals but plans to carefully consider their implications before taking any action. Despite concerns about issues such as corporate tax base calculation rules, stakeholders acknowledge the importance of finding political consensus on proposed measures that will benefit all member states’ economies.
