Former Italian PM Enrico Letta has prepared a report advocating for a stronger industrial strategy in Europe to combat aggressive support from the US. The draft of the report, seen by Euronews, emphasizes the need for unified rules in telecoms, energy, and financial markets, as well as the implementation of a new European business code. Letta’s report calls for tougher competition rules in the EU and a state aid contribution mechanism that would require member countries to finance pan-European initiatives to counteract global subsidy wars.
Letta’s report highlights the importance of developing a competitive industrial strategy in Europe to counteract measures like the US Inflation Reduction Act. The draft introduction to the report stresses the need for European countries to step up efforts in this regard to ensure the prosperity, power, and autonomy of the EU. Letta proposes stronger national enforcement and a funding mechanism for pan-European initiatives, pushing for greater connectivity between European capitals through high-speed rail as a priority for the coming years.
The lack of green travel options in European cities has also been a concern for Letta, leading him to prioritize the planning, funding, and implementation of a major rail connectivity plan. He argues that the European Single Market has been neglected in recent years, and advocates for stronger economic regulation to support Europe’s prosperity. Letta is expected to present his findings to national leaders in Brussels, where there is a growing recognition of the need for a unified industrial strategy and increased investment in key markets like finance, energy, and telecoms.
The report by Letta comes at a time when European companies are facing stiff competition from global powers like the US, which has implemented green subsidies to attract European businesses. The draft report warns that the EU must counteract these measures with its own industrial strategy to ensure competitiveness and growth in the region. The proposal for a state aid contribution mechanism aims to secure funding for pan-European initiatives that will strengthen the EU’s market position and prevent a subsidy war with other global powers.
European leaders, including Charles Michel, have expressed support for Letta’s recommendations, emphasizing the importance of economic regulation in ensuring Europe’s prosperity and autonomy. The EU’s Single Market, considered a key driver of economic growth, has been neglected in recent years, leading to calls for stronger enforcement and investment in key sectors. Letta’s report is set to be a focal point of discussion among national leaders in Brussels, who are expected to consider the recommendations for a unified industrial strategy and increased funding for major connectivity projects in the EU.
