As the European Union member states continue their extraordinary summit in Brussels, with today’s agenda focusing on improving competitiveness and strengthening the internal market, former Italian Prime Minister Enrico Letta has proposed a new pan-European fund to finance competitiveness investments. 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, Letta 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. The relaxation of EU state aid rules, according to Letta, has led to distortions in the competitive landscape among member states.
Letta suggests that a state aid assistance mechanism should be implemented to help countries allocate national funding to pan-European competitiveness investments. He argues that some countries have more fiscal leeway than others, leading to disparities in state subsidies. Additionally, he calls for political tools within the EU to strengthen industrial strategy, similar to those seen in the US IRA.
The Confederation of Business and Industry in Finland, Bruegel think tank, and Suomen Yrittäje are among various organizations and experts that have shown support for Letta’s report. 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 these ideas.
Overall, Enrico Letta’s proposal for a new pan-European fund to finance competitiveness investments highlights an ongoing issue within the European Union: ensuring equal opportunities for all member states while maintaining a level playing field within its borders.
