Former Italian Prime Minister Enrico Letta has proposed a new pan-European fund to finance competitiveness investments. The leaders of the European Union member states are currently meeting in Brussels to discuss improving the Union’s competitiveness and strengthening the internal market. Letta, who has been working on an EU internal market report since last fall, presented his findings to the heads of state.
In Letta’s opinion, the EU Commission should develop a comprehensive internal market strategy that includes measures to remove existing trade barriers and enhance competitiveness. He expressed concern about the disparity in state aid among EU countries, with some able to provide more public money in subsidies than others. Letta suggested the creation of a state aid assistance mechanism to address this issue.
The Confederation of Business and Industry in Finland has also proposed implementing a financial instrument to strengthen competitiveness and investments in the EU. Letta highlighted the need for the EU to have political tools to develop industrial strategies similar to those in the US. He emphasized the importance of addressing political disagreements within the EU to move forward with the proposed ideas.
Brussels-based think tank Bruegel and Finnish organization Suomen Yrittäje have both reacted positively to Letta’s report, with Bruegel calling it a convincing argument for a deeper and wider internal market. Suomen Yrittäje plans to carefully consider the report’s suggestions in the coming weeks. Despite containing ideas that have circulated in Brussels for years, the report may face opposition from member states on certain issues, such as corporate tax base calculation rules.
Overall, the response to Letta’s report has been positive, with stakeholders acknowledging the need for a more unified approach to improving competitiveness and investments in the EU. The challenge moving forward will be finding political consensus on the proposed measures.