The EU’s strongest response: “One Europe, One Market”

This week’s European Council comes at a moment of growing geopolitical tension. Developments in Iran, instability around the Strait of Hormuz and the potential repercussions for global energy markets are once again highlighting how exposed Europe remains to shocks originating beyond its borders.

For European leaders meeting in Brussels on 19-20 March, the immediate focus will inevitably be on the evolving international situation. Yet the broader context is one in which the European Union has spent much of the past decade responding to successive crises.

From the pandemic to Russia’s invasion of Ukraine, from the energy shock to the growing instability in the Middle East, crisis management has become a recurring feature of EU policymaking. Added to this is the unpredictability that has characterised global politics in recent years, including shifts in US foreign policy and the increasing fragmentation of the international system.

The result is a political environment in which Europe often finds itself reacting to events rather than shaping its own long-term trajectory.

This dynamic risks crowding out a different conversation that has slowly been gaining momentum in Brussels over the past year: how to strengthen Europe’s economic foundations in a more competitive and geopolitically contested world.

In this debate, competitiveness is increasingly understood not only as an economic objective but also as a strategic one. Industrial capacity, integrated markets and technological innovation are becoming essential components of Europe’s resilience.

Recent reports by Mario Draghi and Enrico Letta have helped bring these questions back to the centre of the European policy agenda. While approaching the issue from different perspectives, both analyses converge on a common point: Europe’s most powerful economic asset, the Single Market, remains significantly underutilized.

Thirty years after its creation, the Single Market continues to face fragmentation in areas that have become crucial for growth and competitiveness. Financial markets remain largely national, energy systems are only partially integrated, and digital infrastructure still reflects the boundaries of Member States.

In other words, the economic scale that Europe created has not yet been fully realized.

Against this backdrop, the idea of “One Europe, One Market” has recently been put forward as a way to give new momentum to the integration of the European economy.

The concept was presented by Enrico Letta during the informal EU Leaders Retreat in Alden Biesen earlier this year. The initiative is expected to be discussed further by EU leaders during the upcoming European Council. Rather than proposing a single reform, the approach focuses on a broader framework for advancing the integration of the Single Market.

At its core lies a strong methodological structure built around three key elements.

The first is a package approach. Given the interconnected nature of Europe’s economic challenges, progress in one area often depends on progress in others. Advancing reforms as part of a comprehensive package would allow different policy areas to reinforce each other while helping build political consensus among Member States.

The second element concerns political commitment. One of the recurring challenges in the evolution of the Single Market has not been the absence of proposals but the difficulty of translating them into concrete implementation. For this reason, the approach emphasizes the need for high-level political engagement, potentially through a stronger alignment between the European Commission, the European Parliament and the Council.

The third component is the definition of a clear roadmap. Large-scale integration projects require visible milestones, clear timelines and early results capable of maintaining political momentum. Setting intermediate targets and identifying quick wins could help demonstrate progress while keeping the longer-term objective in sight.

Alongside this methodological framework, the discussion also points to a number of key sectors where further integration could have a significant impact on Europe’s competitiveness.

Finance remains a central area, particularly in relation to the development of deeper and more integrated capital markets capable of supporting investment and innovation across the Union.

Energy is another strategic dimension, where greater market integration could contribute both to efficiency and to resilience in a volatile geopolitical environment.

Connectivity infrastructure also plays a crucial role. Strengthening Europe’s digital networks and reducing fragmentation in this domain is increasingly seen as a prerequisite for technological leadership and economic growth.

Beyond these sectoral priorities, the debate also highlights two broader enablers. Simplification of the regulatory framework is often cited as necessary to reduce administrative complexity and improve the functioning of the Single Market. At the same time, innovation remains a key driver of long-term competitiveness, from emerging technologies to research ecosystems and talent mobility.

Whether and how these ideas will translate into concrete initiatives remains to be seen. But the fact that the completion of the Single Market is once again at the centre of the European conversation reflects a broader shift.

In a world defined by geopolitical uncertainty and intensifying global competition, the EU’s internal economic cohesion is increasingly viewed as one of its most important strategic assets.

The challenge for European leaders will be to move beyond a cycle dominated by crisis response and to reconnect short-term decisions with a longer-term vision for Europe’s economic future.

The debate around “One Europe, One Market” is part of that wider attempt to refocus the discussion on the structural foundations of Europe’s competitiveness.