On Monday evening, Enrico Letta outlined his vision for defending, strengthening, and unlocking the full potential of the single market. The former Prime Minister of Italy presented a report focusing on key areas where the EU’s internal market remains fragmented, including telecommunications, energy, and finance. He emphasised that addressing this fragmentation is essential for enhancing the EU’s competitiveness and security, warning against the EU becoming a “colony of the United States or China over the next ten years.”
Letta argued that a unified telecommunications market would promote competition, independence, and consumer protection. He also highlighted the need for the EU to invest in interconnecting its energy market and diversifying energy resources to reduce costs. Additionally, Letta stressed the urgent need to deepen financial market integration to foster a new economic development and innovation paradigm. This integration is vital for keeping pace with global players and funding the fair, green, and digital transition.
He proposed the establishment of a “Savings and Investments Union” to combine private and public resources, which he believes is crucial for financing this transition. Furthermore, Letta noted that the current geopolitical situation necessitates strengthening the EU’s common defence capabilities. He urged the EU to act swiftly to maintain significant autonomy in its foreign, security, and defence policies.
Central to his vision is the proposal for a fifth freedom of movement in the 21st century, focusing on research, data, skills, knowledge, and education without requiring changes to the EU treaties. To ensure businesses can thrive and benefit from the single market, former prime minister Letta emphasised the need to simplify its rules and reduce bureaucracy while maintaining social standards.
Hoping that Members of the European Parliament (MEPs) would support these ideas alongside Mario Draghi‘s report on competitiveness, he concluded that the EU cannot afford to miss this opportunity for reform. Following his presentation, a debate ensued, and MEPs acknowledged that Mr Letta had accurately identified the issues within the single market. Many members agreed on the importance of minimising bureaucracy, preventing capital outflow, centring the daily lives of EU citizens in all transformations, properly implementing existing measures, and advancing the movement of ideas and knowledge throughout Europe.
Both supporters and opponents of the Green Deal raised concerns about environmental issues and climate policies. MEPs underscored the urgency of acting on Letta’s and Draghi’s recommendations but recognised the challenges posed by the absence of a single Commissioner responsible for the internal market in the new European Commission. Additionally, it was repeatedly noted that while Mr Letta advocates introducing a fifth freedom of movement in Europe, many countries are closing their borders again.
