Enrico Letta, the former Italian Prime Minister, has proposed the creation of a new pan-European fund to finance competitiveness investments. The European Union member states are currently holding an extraordinary summit in Brussels, with today’s 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. In his 147-page report, he emphasizes the need for a comprehensive internal market strategy from the EU Commission. He highlights the importance of dismantling trade barriers and increasing competitiveness within the Union.
Letta believes that the relaxation of EU state aid rules has led to distortions in the competitive landscape among member states. To address this issue, he suggests implementing a state aid assistance mechanism that 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.
The report also calls for the development of political tools within the EU to strengthen industrial strategy, similar to the US IRA. Letta believes that these tools would help create a more level playing field for businesses across Europe.
Various organizations and experts have shown support for Letta’s report. The Confederation of Business and Industry in Finland, Bruegel think tank, and Suomen Yrittäje all believe that 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 these ideas.
In conclusion, Enrico Letta’s proposal for a new pan-European fund to finance competitiveness investments highlights the need for greater integration and cooperation within the European Union. While his report presents several useful ideas for achieving this goal, finding political consensus remains a significant hurdle. Nevertheless, it is crucial that European leaders work together to create a more competitive and prosperous Union for all its members.