EU Leaders Push Deeper Single Market and Investment Union to Boost Competitiveness

By Mintesinot Nigussie  |  September 7, 2026

European Union leaders must move faster to complete the bloc’s single market, integrate capital markets and cut regulatory barriers if Europe is to remain competitive as global economic rivalry intensifies, European Council President António Costa said.

Speaking at the Intelligence on the World, Europe, and Italy – Cernobbio Forum in Italy, Costa said the EU should respond to a more competitive and uncertain global economy by building on the strengths of its 450 million-consumer market while addressing persistent barriers to investment and business expansion.

“We must adapt because the world is changing and because we want to protect and strengthen the European way of life,” Costa said.

Costa pointed to the EU’s “One Europe, One Market” agenda, which sets out 42 measures to improve economic performance by the end of 2027. The programme focuses on completing the single market, reducing unnecessary bureaucracy, securing affordable energy, strengthening industrial capacity, reducing strategic dependencies and mobilising investment.

A central priority is creating a Savings and Investment Union capable of directing more European household savings into European businesses and productive investment.

“We need a new investment culture, with household participation and strong consumer protection,” Costa said, adding that EU leaders intend to deliver the Savings and Investment Union by the end of 2027.

He also called for a so-called 28th corporate-law regime that would allow companies to operate across all 27 member states under a single set of rules, rather than navigating separate national frameworks.

After years of attempting to harmonise national corporate regimes, Costa said companies should instead be given the option to operate under a common European framework.

The push comes amid concerns over Europe’s competitiveness relative to the United States and other major economies. Reports by former Italian prime ministers Mario Draghi and Enrico Letta have highlighted weak investment, fragmented capital markets, high energy costs and regulatory barriers as constraints on European businesses.

Costa rejected the view that Europe is simply in decline, arguing that the bloc retains significant economic and institutional advantages, including its single market, extensive trade network and high levels of social protection.

The EU has also expanded its external economic relationships, Costa said, citing recently concluded negotiations with India and Australia and agreements with Mercosur and Mexico. He said negotiations or ratification processes were under way with another 25 countries.

Energy is another major component of the competitiveness agenda. Costa argued that Europe must reduce its dependence on imported fossil fuels by expanding domestic renewable and nuclear power, saying areas with greater access to clean and secure energy generally face lower electricity costs.

Technology and skills will also determine Europe's ability to compete, he said, identifying artificial intelligence, quantum technologies, clean energy and digital infrastructure as strategic areas for investment.

Costa highlighted European AI companies including Mistral and Milan-based Domyn as evidence that the bloc has the talent to develop advanced technologies.

Housing, he added, has become an economic issue because high housing costs can make it harder for Europe to retain younger workers and skilled professionals.

The European Council president also linked competitiveness to the EU’s next long-term budget for 2028-2034, which he said should place competitiveness, industrial transformation, defence, security and strategic resilience at its centre while continuing to finance agricultural and cohesion policies.

Costa said EU leaders must reach agreement on the 2028-2034 budget before the end of 2026 to prevent disruptions to funding for farmers, businesses, students, researchers and innovators.

Source: FSX Business News