Italian Prime Minister Enrico Letta has proposed the establishment of a new pan-European fund to finance competitiveness investments. The European Union member states are currently in an extraordinary summit in Brussels, with the agenda focusing on improving competitiveness and strengthening the internal market.
Letta, who has been working on the EU internal market report since last fall, presented his findings to the heads of state at the summit. His 147-page report emphasizes the need for a comprehensive internal market strategy from the EU Commission. Letta highlights the importance of dismantling trade barriers and increasing competitiveness within the Union.
The report suggests that a state aid assistance mechanism be implemented, which would require countries to allocate national funding to pan-European competitiveness investments. Letta argues that some countries have more fiscal leeway than others, leading to disparities in state subsidies. He also calls for political tools within the EU to strengthen industrial strategy, similar to the US IRA.
The proposal has received support from various organizations and experts, including Confederation of Business and Industry in Finland, Bruegel think tank, and Suomen Yrittäje. They believe it presents sensible and necessary ideas for deeper integration and competitiveness within the EU. However, finding political consensus across member states remains a challenge in implementing this idea.
Letta’s report will continue to influence discussions among EU leaders as they work towards creating a more competitive and integrated Europe.