The subject of competitiveness will be at the heart of the discussions held between the Heads of State or Government on Thursday 20 March. In an afternoon debate, they will consider the simplification measures proposed by the European Commission (see EUROPE 13588/4), the Commission’s Action Plan for Affordable Energy (see EUROPE 13588/3) and the proposal for a “Savings and Investment Union” published on Wednesday 19 March (see other news).
The Euro Summit will form part of the debate on competitiveness, which will be attended by the President of the European Central Bank, Christine Lagarde, and the President of the Eurogroup, Paschal Donohoe.
And in a move also linked to competitiveness, the EU27 leaders will meet again for dinner to discuss the Multiannual Financial Framework (MFF).
The issue of American and European tariffs (see EUROPE 13598/1) could be on the agenda of the Heads of State or Government since, as one European diplomat noted, the subject of Donald Trump “is everywhere”.
Moving towards a Savings and Investment Union. According to a European diplomat and the draft set of conclusions dated 19 March, the European Council should give a clear mandate to the EU institutions and Member States – including clear deadlines – specifically with regard to a securitisation framework, improving the private equity and venture capital ecosystem, and attractive pension savings products. “Of course, many of the measures also depend on the European Commission’s documents and proposals” said the diplomat on Tuesday.
The language should refer to the strategy presented on Wednesday by the Commission on the Savings and Investment Union (see other news), but also to previously proposed measures.
Issues relating to supervision, which was previously discussed in March 2024 (see EUROPE 13375/7), will also be addressed on Thursday. According to the same diplomat, the Member States remain divided on the issue, but a breakthrough is still possible. The draft conclusions also call on the European Commission and EU countries “to ensure convergent supervisory practices ".
Rapid simplification. The Member States have had several weeks to digest the Commission’s various proposals on regulatory simplification. They agree on the need to move quickly (see EUROPE 13601/22) and the European Council must be the occasion to give indications of the timetable and to call for rapid work.
Looking at this in detail, the leaders are expected to press for the adoption of the ‘stop the clock’ directive, which suspends the application of the CSRD and CSDDD directives, by the end of June. They are also likely to call for omnibus packages to be adopted to the greatest extent possible in 2025.
To go further, the European Commission must rapidly propose new simplification initiatives, particularly with regard to industrial decarbonisation and on security and defence, according to the Member States.
Energy. In the ‘competitiveness’ section, the EU Council will briefly touch on the subject of energy, which is seen as being “relatively consensual”, according to a European diplomat.
In particular, the European Council will call for efforts to be intensified at EU and Member State level to guarantee security of supply and build a genuine Energy Union “before 2030”. It will also advocate “cross-border and Union-wide long-term investment planning” with a view to fully integrating the energy market, as outlined in the European Commission’s Action Plan for Affordable Energy (see EUROPE 13588/3).
For some countries, however, this new plan “does not go far enough” in terms of decoupling retail electricity prices from volatile gas prices, revealed one diplomat, who also called on the European Commission to rapidly present its roadmap for an exit from Russian energy imports.
Euro Summit. Together with Ms Lagarde and Mr Donohoe, the leaders will discuss the economic and financial situation in the euro area and ways of ensuring the resilience and competitiveness of the European economy. The inclusive debate format on competitiveness will enable the two guests to gain an insight into the different visions for the Savings and Investment Union and, more broadly, the Capital Markets Union.
Furthermore, participants will report on progress made on the digital euro. Ahead of the summit, Paschal Donohoe sent the President of the European Council, António Costa, a letter in which he called for the introduction of a digital euro (see EUROPE 13600/14).
MFF. The leaders’ dinner will be devoted to an initial round-table discussion on the post-2027 Multiannual Financial Framework (see EUROPE 13577/20) and on the new own resources so that the Member States can contribute to the European Commission’s reflections, the proposal for which is expected to be put forward in July.
This will be an opportunity to discuss the potential new architecture of the EU budget (see EUROPE 13598/5). Portugal, Spain, Slovakia and Slovenia have already shared their thoughts on the competitiveness fund, which would represent the second pillar of the next MFF (see EUROPE 13600/16).
Discussions will also be held on the need for greater common resources (new own resources) at a time when new political priorities such as security and defence are emerging, and at a time when the repayment of Next Generation EU, which starts in 2028, will account for 20% of the EU’ current budget. France (see EUROPE 13599/6), Estonia and Spain (see EUROPE 13578/3) have already adopted their position on the MFF.
See the draft conclusions: https://aeur.eu/f/g0r (Original version in French by Léa Marchal, Pauline Denys, Bernard Denuit and Florent Servia)