Much More Than a Report: The Search for Europe's New Political Identity and the Politics of Competitiveness

Thirty years ago, the European single market was built on a simple but powerful idea: economic integration among EU countries would drive internal prosperity and political unity while also supporting global openness. Today, that idea is being tested. Faced with intensifying global competition, geopolitical fragmentation and technological shifts, the EU is rethinking its economic approach. In 2024, two landmark reports – Enrico Letta’s Much More Than a Market and Mario Draghi’s The Future of European Competitiveness – laid out distinct yet complementary visions for the future of European economic governance. These reports not only diagnose the structural weaknesses of the EU economy but also propose a roadmap for ensuring Europe’s long-term competitiveness in an increasingly uncertain global order. Despite their different emphases, both reports converge on a crucial point: the EU has reached a turning point and requires a fundamental recalibration of its economic model. Over the past three decades, EU policy has primarily focused on internal competitiveness – removing barriers within the bloc and ensuring a level playing field among member states. Now, both reports signal a decisive shift toward external competitiveness. In other words, the priority is no longer just deepening the internal market but positioning the EU more effectively in global economic competition. This shift entails a more strategic approach to economic governance, including targeted industrial policies, strengthened financial instruments and, in some cases, a reconsideration of trade openness.