How the European competitiveness calendar stands after EUCO: key proposals, dates and deadlines

Community officials agree on a diagnosis during recent months in Brussels. The European capital market and its autonomy face a series of obstacles that prevent the continent from being fully efficient. In the capital, they believe they have the answer to their headaches: barriers to cross-border economic activities and non-aligned supervisory practices, with weak tools at the European level that maintain a strong domestic bias.

Sources consulted by Demócrata point to three axes of action in this debate: the lack of integration coupled with the scale of the market, fragmented supervision, and barriers to innovation. In comparison with the United States, the European Union has a greater number of small entities, higher transaction costs and limited liquidity. Added to this is the fact that the differences in supervisory practices for the same activities would be generating inefficiencies and an increase in operational costs for those companies that carry out their work in various States.

There are even voices in the European corridors that estimate that “internal barriers in the single market are equivalent to a tariff of more than 100%”. All this at a time when the European Union says it is reinforcing its strategic autonomy to break the scheme conceived until now, in which the United States provided the security umbrella and China that of competitive products.

A new political impetus with diffuse deadlines

With the mission of redoubling its efforts in this area, European leaders entrusted the European Commission with the design of a clear strategy “with concrete deadlines and measures” after their informal retreat in February. Before a meeting of the Belgian industry, President Ursula von der Leyen came to confess her discomfort over the fact that the legislation adopted during recent years was not yielding the expected results.

Thus, the European Council summit this Thursday was presented as the new starting square. The km 0 for the continent to begin recovering its economic leadership. It was not entirely so. Once the “obligation” to react to the war initiated by the United States and Israel in Iran was overcome, the Twenty-Seven reserved dinner to discuss these matters.

In practice, it served as a kick forward, where the Executive did not reveal all the details of its plan “One Europe, one market”, but it did set concrete deadlines for the coming months. Do not leave for today what you can do tomorrow. The conclusions adopted at midnight include the nuance that the States will launch their new agenda during this 2026 “when possible” and “at the latest by the end of 2027”.

Single market, simplification and rights

The leitmotif that can be expected from this new impulse is the fact of devising a system in which “companies of all sizes” see themselves capable of operating “without obstacles in the single market” through “harmonized rules at the European Union level”. In the capitals, special attention is paid to the fact that “the free movement of workers through the improvement of mutual recognition of professional qualifications” is reinforced.

Before December, the principle of "only once" is sought to be achieved, even through a Business Portfolio. The underlying objective is to simplify administrative processes by taking advantage of digitalization.

The President of the Government, Pedro Sánchez, advocated in the European Council chamber for maintaining the social pillars of the Union even in debates on regulatory simplification. In this way, the States have committed to “strengthening consumer protection” using as a basis a new initiative that the Executive will also present in the last quarter of the year related to the marketing of products, especially those non-compliant ones from third countries.

This is not all regarding free movement. The Commission has also been tasked with drawing up a proposal before December to end the fragmentation of product labeling and packaging requirements, relying on digital solutions. “This should address the negative impact of territorial supply restrictions that fragment the single market”, states the conclusions document.

Scale, competition and regulatory simplification

Thus, the Von der Leyen cabinet must comply with the mandate to support companies in their struggle to achieve the necessary scale to compete globally. The heads of Government agree that this also refers “to the ongoing review of merger guidelines”, which, they say, must continue to ensure effective competition.

The truth is that the beginning of the German's second term has been characterized by the simplification agenda deployed, with practically a dozen of omnibus packages, of which only three —among them the one related to the climate responsibilities of companies— have completed their processing.

Despite the fact that, as the leader acknowledged, she is not “satisfied” with the speed at which the processing of these packages is taking among co-legislators and, therefore, with their real impact on the productive fabric, the States are willing to “maintain the momentum to reduce the burdens derived from existing legislation”.

On the horizon: to complete before the end of 2026 all pending omnibus packages, including an ambitious omnibus package on AI before July 2026.

Energy, industry and European autonomy

Beyond completing the packages already presented, the Twenty-Seven left the European Council chamber with the will that the Executive “present new initiatives to accelerate permit planning procedures”. However, the key would not only be in developing new legal texts, but also in that “the European Parliament and the Council avoid introducing additional burdens in EU legal acts”.

However, one of the challenges that Von der Leyen will have to face in the coming months will be the review of the emissions trading system. Europeans want the reform, which will be presented “no later than July 2026”, to help reduce the volatility of carbon prices and mitigate its impact on electricity prices, as well as on the relocation of activities. The delegations believe there is a certain consensus on maintaining its “essential” role as a market signal that drives investment.

In energy matters, member states want co-legislators to agree in 2026 on an ambitious network package “to rapidly build the necessary infrastructure, ensure its resilience, and improve interconnections at a trans-European level”. The door is even opened to simplify authorization procedures.

Following the informal summit in February, the Commission presented its initiative known as “Made in Europe”, which prioritizes the acquisition of European products in public procurement processes. The Twenty-Seven have agreed that its processing will be concluded this year to protect key sectors against unfair competition “including through the timely use of trade defense instruments”.

In addition, the European Council has urged to conclude before 2027 the negotiations on the legislative proposals related to securitization, supplementary pensions and the market integration and supervision package. This also includes the proposal for the digital euro, the regime 28, technological sovereignty and the framework for the banking sector.

“The Council asks the Commission and the co-legislators to deepen the integration of the EU banking market by moving towards the culmination of the Banking Union”, conclude the conclusions of the March summit.

A race against the clock in Brussels

After hours of negotiations focused on the European reaction to a war in which they do not decide and after postponing strategic debates, the Commission has to do its homework in a record time unusual in Brussels. It is no small task: to manage to rewrite in nine months the obstacles that have prevented the continent's growth during recent years.