On Friday 23 January, the Italian and German governments will adopt a joint document aimed at boosting the European Union’s competitiveness, ahead of the informal European summit on 12 February, which is devoted to this subject.
The President of the Italian Council, Giorgia Meloni, and the German Chancellor, Friedrich Merz, are expected to approve the document at a bilateral Franco-Italian summit in Rome.
Among other things, the document calls for the elimination of regulatory barriers to growth and a reduction in the regulatory burden, with further withdrawals and simplifications of EU initiatives in all areas.
It quotes figures from the International Monetary Fund showing that internal barriers in the EU represent customs duties of up to 44% for trade in goods and over 110% for trade in services, and it also calls for an ambitious reduction in the regulatory burden.
The two governments cite the fact that planning and approval procedures in Europe take far too long, suggesting a targeted, cross-sectoral initiative in the form of an omnibus to speed up authorisations.
The European Commission is also called upon to repeal legislation that appears outdated. Both countries point out that, since the early 2000s, the growth gap with regard to the United States and China has widened. They therefore want legislative restraint and to put the emergency brakes on legislation that is potentially harmful to the EU economy, SMEs and SMCs.
They also believe that the EU needs to close the innovation gap with the United States and China, with the introduction of a 28th regime by the end of the year.
An ambitious framework for highly innovative companies should also be developed, in the form of an experimentation clause via a regulatory sandbox.
With regard to mobility, the two parties still want to conclude negotiations on the electronic declaration for cross-border workers by the first half of 2026.
EU companies also need to be able to count on rapid, unbureaucratic public funding. The European Commission is invited to simplify EU State aid law on an ongoing basis. The European Competitiveness Fund, meanwhile, should support the best high-impact projects.
The two countries are still asking to ensure that company mergers are evaluated against the global market. Revised merger control guidelines should be presented immediately.
The document also covers the automotive sector. Full and swift implementation of the principle of technological neutrality and further simplification are needed to ensure the transition towards a competitive European regulatory system.
Finally, Rome and Berlin are calling for an ambitious EU trade policy and the rapid conclusion of new free trade agreements, notably with India, Australia, the United Arab Emirates and the ASEAN countries.
They also believe that the EU can no longer afford to negotiate such agreements for 25 years, as was the case with the Mercosur countries. (Original version in French by Solenn Paulic)