BRUSSELS — European leaders have laid out an ambitious economic and defense agenda, vowing to cut red tape, lower energy costs, and boost military funding to enhance the European Union’s competitiveness and security.
Speaking before the European Parliament on Tuesday, European Council President António Costa warned that “business as usual is not an option” in a world where geopolitical tensions, economic uncertainty, and security threats demand urgent action.
“We are moving forward with clear targets, clear taskings, and clear timelines,” Costa said, outlining the EU’s new strategy on economic resilience and defense sovereignty.
Economic Overhaul: Red Tape and Investment Reforms
A key takeaway from the recent European Council summit was the decision to cut bureaucracy by 25% for all businesses and 35% for SMEs, a move Costa said would “make it easier for businesses to thrive without compromising key goals like the green transition.”
The leaders also targeted energy affordability, pledging to lower costs for consumers and businesses to “enhance European competitiveness.”
Another pressing concern was the outflow of capital from EU markets, which Costa said amounted to €300 billion annually—money that should be invested in European businesses.
“This must change,” Costa emphasized. “We are building a true Savings and Investments Union to keep European capital within Europe.”
Defense Push: A Stronger, More Sovereign Europe
Amid ongoing security threats, particularly in Ukraine, the EU is ramping up military spending through the “SAFE” instrument, which will provide up to €150 billion in loans to member states for defense upgrades.
“The decisions we made in the March European Council were a turning point in creating a stronger, more sovereign Europe of defense,” Costa said.
The plan will also free up fiscal space in national budgets through the activation of National Escape Clauses, allowing member states to increase defense spending without violating EU financial constraints.
“Defense and security investments drive technological progress that benefits industries beyond the military sector,” Costa noted.
Global Cooperation and Multilateralism
European leaders also stressed the importance of deepening strategic partnerships in a time of global uncertainty.
“We must strengthen our ties with like-minded nations,” Costa said, noting that trust in multilateral institutions is “under strain and unpredictability is the norm.”
The summit saw an important meeting with United Nations Secretary-General António Guterres, where EU leaders reaffirmed their commitment to the UN Charter and a rules-based international order.
“A multipolar world needs a strong multilateral system,” Costa said. “We cannot tackle climate change, reduce global inequalities, or protect biodiversity alone.”
Costa concluded by stressing that the EU must act swiftly.
“The urgency is clear—on defense, on competitiveness, on making Europe stronger,” he said. “We must invest more, better, faster, and together.”
As Europe accelerates its economic and security reforms, the coming months will test whether these ambitious policies can deliver lasting prosperity and stability in an increasingly volatile global landscape.
Editor: Gabriel Ani
