Almost every topic at the European Council on March 20 came down to one thing: competitiveness.
Most of the conclusions published concerned the European Union’s economic strength, with commitments ranging from financial reforms to industrial policy and regulatory overhauls.
Other major issues including energy, capital markets, defence and trade, all of them discussed through the lens of Europe’s ability to compete globally.
Early on March 21, the European Council published a 14-page document detailing the conclusions of the council.
Although Ukraine President Volodymyr Zelensky made a video appearance, his country and its problems did not dominate the agenda. The most prominent outcomes revolved around European competitiveness: “Business as usual is no longer an option”, said Council President António Costa.
The conclusions indicated that economic competitiveness has become the EU’s main priority.
“We will make the Union more competitive, productive, innovative and sustainable,” the Council’s Budapest Declaration had stated in November, aligning with the conclusions that called for a fundamental overhaul of the single market, capital markets and industrial strategy.
The council explicitly mandated the European Commission to present a comprehensive plan by June 2025 to deepen and enhance the single market, described in the conclusions as “a key driver for innovation, investment, convergence, growth, connectivity and economic resilience”.
Financial reforms were another part of the competitiveness agenda.
“Taking decisive steps towards a Savings and Investment Union by 2026” and “making urgent progress on the Capital Markets Union” have been formally endorsed.
Yet, structural weaknesses has persisted, as highlighted by European Commission President Ursula von der Leyen. She warned that the European capital market remained “still fragmented and complicated.”
While former Italian prime minister Mario Draghi’s proposal for joint EU debt issuance to finance investment had divided leaders — with Germany and the Netherlands opposing and France and Spain advocating it – his warning remained: “Even with a low increase in productivity, the amount required is realistic.”
Draghi’s report, published in September 2024, estimated a need for at least €750 billion in additional annual investments.
The summit conclusions also called for a renewed industrial strategy to ensure that the EU remained an “industrial and technological powerhouse”.
The Clean Industrial Deal and the Competitiveness Compass, both discussed in the Competitiveness Council that took place earlier in March, have been recognised as key instruments.
Leaders have emphasised that industrial competitiveness and decarbonisation must proceed in tandem, with a direct call for “urgent measures to address the situation resulting from high and volatile electricity prices in Europe”.
Draghi, reinforcing this point, stated: “We cannot simply [let these industries move] to another country outside [the EU].”
Regulatory reform, once an afterthought, has now become a priority.
“Launching a simplification revolution” was framed as critical, with a direct instruction to the European Commission to “reduce reporting requirements by at least 25 per cent” in the first half of 2025.
This marked a strategic shift in EU economic thinking. Regulation was no longer seen solely as a safeguard but as a potential barrier to global competitiveness.
While Ukraine was mentioned, it was largely side-lined by the competitiveness agenda in terms of what were supposed to be concrete decisions. “All instruments discussed tonight were there to increase the leeway of member states to support Ukraine,” said Costa, without detailing new initiatives.
The summit’s conclusions confirmed a shift in EU priorities: European leaders wanted to emphasise a commitment towards the bloc’s economic survival in a rapidly evolving global landscape.
