Enrico Letta Calls for Comprehensive Internal Market Strategy in EU Report, but Faces Political Challenges

Enrico Letta, the former Italian Prime Minister, has presented a report to the European Union heads of state at their extraordinary summit in Brussels. The report emphasizes the need for a comprehensive internal market strategy from the EU Commission, focusing on improving competitiveness and strengthening the internal market.

Letta’s report, which is 147 pages long, highlights the importance of dismantling trade barriers and increasing competitiveness within the Union. He also calls for the relaxation of EU state aid rules, arguing that they have led to disparities in state subsidies among member states.

To address these issues, Letta suggests implementing a state aid assistance mechanism that would require countries to allocate national funding to pan-European competitiveness investments. He argues that some countries have more fiscal leeway than others, leading to disparities in state subsidies.

The report has received support from various organizations and experts, including the Confederation of Business and Industry in Finland, Bruegel think tank, and Suomen Yrittäje. They believe that Letta’s ideas present sensible and necessary solutions for deeper integration and competitiveness within the EU. However, finding political consensus across member states remains a challenge in implementing these ideas.