European Union leaders have agreed to reforms in nine areas to revitalize the bloc’s economy and help it catch up with the United States and China in the global technology race. However, there are still disagreements about the source of the money needed to implement the plan.
“Every year, 300 billion euros of European savings go abroad, mainly to the United States. This is money that is not enough for the development of our companies in the European Union. And this is due to the fragmentation of our capital markets and financial system.”
Former Italian Prime Minister Enrico Lette was instructed to assess the shortcomings of the EU single market. According to him, this is a critical moment when the bloc still has a chance to reverse the trend.
The key reform should be the creation of the EU Capital Markets Union. It will help channel trillions of euros of EU private savings from current accounts into the real economy, as well as finance the bloc’s transition to a green and digital economy.
But negotiations have stalled for almost a decade, as EU members do not want to give up control over national financial regulations.
The EU leaders intend to form the key points of the union by 2029.
