(In a volatile economic context marked by sluggish growth, 2026 looks set to be a decisive year. “It is essential to restore the competitiveness of businesses and to support investment in the productive apparatus in order to ensure the financing of our social models,” warns Fernand Ernster, President of the Luxembourg Chamber of Commerce, in a reaction he sent us at the same time as Mr Dlouhý’s contribution.)

EU heads of state and government are meeting this Thursday 12 February at the picturesque castle of Alden Biesen, in eastern Belgium, for what European protocol describes as a “retreat” for leaders. Far from any rest, introspection or spiritual renewal, they will be discussing how to speed up the progress—so far very limited—of European competitiveness, almost 18 months after the publication of the famous Draghi report.

While the hypothetical costs of “non-Europe” have been widely documented over the years, the very real costs of an uncompetitive Europe are now steadily increasing, under the combined effect of external factors and internal dysfunctions. More and more European companies are finding themselves caught in a vice. Export-oriented strategies, widely adopted in recent years to seize new opportunities in emerging markets, are now exposing them to increased risks linked to geopolitical tensions, customs duties and other trade barriers.

At the same time, refocusing on the European market means operating in a highly regulated single market, where many barriers to free movement remain. One might expect a broad political consensus for the EU to respond to global uncertainty by redoubling its efforts to restore multilateralism and to strike deals with like-minded partners.

Anachronistic strategies

Alas, some European leaders seem determined to move in the opposite direction. The most recent example is the EU-Mercosur agreement, frozen for up to two years by a narrow majority of MEPs just days after it was signed.

These strategies of instrumentalising procedural checks and balances are anachronistic in today’s unpredictable world, and they are costing Europe dearly. According to a recent study by the European Centre for International Political Economy (Ecipe), the EU sacrificed €183bn in exports and €291bn in gross domestic product (GDP) because of its failure to ratify the EU-Mercosur agreement.

Stalemate and populism damage Europe’s image as a reliable partner. Europe needs collective dynamism and action, not inertia. At the same time, it needs to exploit its own growth potential to the full by harnessing what can be harnessed. The integration of the single market is essential, and the cost of its persistent fragmentation is now clear. Work by the International Monetary Fund (IMF), published in December 2024, estimates that the remaining barriers within the single market are equivalent to customs duties of around 44% on goods and 110% on services.

Completing the single market

According to the German institute Ifo, a 25% reduction in these barriers could increase the EU’s gross value added by around €350bn in the long term. An article by the European Central Bank (ECB), published in January 2026, estimates that trade frictions within the single market are more binding than the highest tariffs brandished by Donald Trump last year, and that trade in services between Member States is almost twice as costly as trade within national borders.

Waiting for a new “Eureka” moment, like the Maastricht Treaty in 1992, or multiplying ambitious communications on competitiveness will not solve this crisis. The future roadmap for the single market must define a clear route for removing the “ten major obstacles” identified by the European Commission last year, and set milestones against which progress can be measured. Completing the single market today depends less on grand political gestures than on the ability to take concrete action. This means methodically removing disproportionate regulatory barriers, one by one, based on evidence and close dialogue with businesses.

This technocratic work may not make the headlines, but it is the prerequisite for unlocking considerable growth potential and strengthening the EU’s economic security and strategic autonomy. Progress in the single market requires the political support of the Member States. Measures that may seem effective at national level can nevertheless hold back the Union’s collective strength and competitiveness.

Strengthening cross-border cooperation

This is a reality that is difficult to accept in many countries, and has often proved indigestible in the past. But not everywhere. For many years, the Benelux countries have been pioneers in European economic integration, adopting joint initiatives to strengthen cross-border cooperation in the fields of digital technology, energy and labour mobility. The Baltic States, meanwhile, are stepping up cross-border cooperation, particularly in the energy, financial services and transport infrastructure sectors.

These enhanced initiatives for economic cooperation and the removal of barriers should form the basis for wider efforts to enable businesses to trade easily across borders throughout the EU. The single market is not an end in itself. Nor should it become a framework within which decision-makers pursue a multitude of political objectives and strategies. The single market is a mechanism designed specifically to ensure the free movement of people, goods, capital, services and knowledge.

With sustained political commitment at the highest level, it can become Europe’s true strategic asset, boosting growth and strengthening the EU’s global economic influence based on its values. We call on Europe’s leaders to keep this objective in mind and to adopt an ambitious strategy for integrating the single market when they meet at Alden Biesen for the rest of the legislature.