As is now customary, the leaders of the EU27 Member States will exchange views on the competitiveness of the European Union during the European Council on 26 and 27 June, over dinner on Thursday evening. The President of the European Council, António Costa, proposed framing these discussions within a “geo-economic” theme to also encompass the international context affecting the European economy. The conclusions they are expected to adopt do not differ greatly from the previous ones, according to a draft dated 24 June obtained by Agence Europe. But the Heads of State or Government believe it is crucial to maintain their focus and efforts on simplifying the rules, strengthening the internal market and guaranteeing affordable energy.
Industry. The fine-tuning of the text of the conclusions over the last few days has made it possible to take into account the requests of certain delegations. For example, the authors state that it is important to pay “particular attention to the challenges faced by traditional industries, such as the automotive, freight, aviation and energy-intensive industries”.
Energy. In the same vein, the section on energy has been expanded to emphasise the need for affordable energy and to meet the demands of the countries of Central Europe, which would struggle to do without Russian gas, according to the main interested parties.
The leaders should also specify that alternative transit routes for energy must be economically viable and “take account of the specific characteristics of landlocked countries”. As in previous European Council conclusions, the case of Slovakia is mentioned.
Simplification. Summit participants should welcome the efforts and results already achieved in reducing the administrative burden, at a time when the Polish Presidency of the Council of the EU has already secured political agreements between the EU27 on several ‘omnibus’ simplification initiatives, as well as several agreements with the European Parliament.
Euro. The language on the euro was clarified: the leaders should call for its international role to be strengthened, “including as a reserve and transaction currency”. In addition to the issue of geopolitical influence, the aim is to reduce dependence on the dollar and the risks associated with the volatility of this currency in the current climate of uncertainty. According to one European diplomat, it is in the interests of European businesses for the euro to be widely used in order to reduce transaction costs and become more competitive.
Trade. Trade negotiations with the United States are sure to come up for discussion as Member States eagerly await news from the Commission. Clarification on the political margins of each would be useful, explained a European diplomat. However, at present, the EU27 have few clues as to what they can expect in terms of tariffs at the end of the negotiations, and speculation is rife.
The leaders could also look at relations with China, just a few weeks before a bilateral summit.
The other trade issue that could creep into the discussions is the EU/Mercosur agreement. The Commission plans to publish its signature proposal in the days following the European Council, or even the day after, according to one source.
See the draft conclusions: https://aeur.eu/f/hjx (Original version in French by Léa Marchal with the editorial staff)