EU Urged to Revamp Strategies to Compete with Global Powers

A policy paper from Germany and Italy warns the EU needs reforms to stay competitive against the U.S. and China. The document suggests reducing bureaucracy and improving the EU single market. It will be a focal point at the Leaders' Retreat in Belgium, urging concrete commitments.

Germany and Italy have issued a cautionary policy paper warning that the European Union may lag behind global competitors like the U.S. and China unless substantial reforms are made to boost competitiveness.

The document, intended for a forthcoming informal summit, urges significant changes such as cutting bureaucratic red tape and expediting permit approvals to invigorate Europe's single market. Review by Reuters indicates the paper asserts European living standards and sovereignty are at risk as emerging competitors gain influence globally.

The paper is expected to be central at the Leaders' Retreat next month, where aligned strategies for supporting businesses and drawing investments will be discussed. It emphasizes reducing internal market barriers, proposing a fast-track approval process and periodic reassessment of regulations.

(With inputs from agencies.)