In a bold move to reinvigorate the European Union's economic might, European Commission President Ursula von der Leyen has called for a renewed push to "deepen" the bloc's single market. This comes as the EU finds itself increasingly challenged by the economic prowess of global rivals like the United States and China.
Speaking to reporters, von der Leyen acknowledged that the EU has sometimes "imposed complex and partly contradictory" requirements on businesses, hindering their ability to compete internationally. What this really means is that the single market, once touted as the "cornerstone" of European integration, has become bogged down in red tape and bureaucracy, putting the EU at a disadvantage.
Simplifying to Spur Innovation
The Commission president's solution is an "unprecedented simplification effort" aimed at reducing administrative costs for companies by 25%, and even more for small and medium-sized enterprises. Reuters reports that this push for "simplification" is intended to help the EU keep pace with its global competitors and support the bloc's green and digital transitions.
"The more complex [the legislation], the slower [to meet the climate targets]," von der Leyen said, underscoring the urgency of cutting red tape. This aligns with a hard-hitting report from former Italian Prime Minister Mario Draghi, who warned that the EU risked "a slow and agonising decline" without decisive action to bolster the single market.
Geopolitical Implications
The bigger picture here is that the strength of the EU's single market is not just an economic issue - it has significant geopolitical implications as well. As a European Parliament research brief points out, the single market's attractiveness for foreign businesses serves as an important tool for enhancing the EU's global influence amid shifting power dynamics.
By streamlining regulations and boosting innovation, von der Leyen hopes to make the EU's single market more dynamic and competitive. This, in turn, could reinforce the bloc's geopolitical clout on the world stage as it seeks to hold its own against economic superpowers like the US and China.
As the EU navigates an increasingly complex global landscape, the fate of its single market will be crucial in determining Europe's future prosperity and strategic positioning. Von der Leyen's call for deeper integration is a high-stakes gambit to secure the EU's economic and geopolitical standing for years to come.