Remarks by President António Costa at the EESC plenary debate on competitiveness 15:20 President of the European Council, António Costa, participated in the European Economic[...]

It is an honour to speak before you after my first appearance in December 2024, when I shared my views about Europe's competitiveness challenges.

Our first discussion with President Boland, on his inauguration day, was about housing scarcity in Europe, to prepare the first-ever Leaders' discussion on the European housing crisis.

Housing is a key element of the cost-of-living crisis and a major concern for our citizens that has been fuelling the anger against our democratic institutions, now exacerbated once again by rising inflation and the energy crisis. It shows how global and local levels are directly linked and affecting Europe's competitiveness. It is fair to say that a more competitive and sovereign Europe is needed to safeguard our welfare state, to protect our values and our citizens

And our second discussion was in view of the preparation of the European Union Leaders' retreat on competitiveness in February of this year, culminating into our new 'One Europe, one market' agenda adopted by the Leaders in March.

In the meantime, the world continues to change and to be reshaped at an unprecedented speed. Europe has been exposed to numerous external events: continuation of the war in Ukraine, US tariffs upsetting the international global and trading order, China flexing its economic muscle, and the war in the Middle East leading to a third oil shock.

It shows the price we pay for our multiple dependencies in a fragmented international trade system that would reduce the gains of global economic integration. That price is particularly high for energy and electricity impacting our citizens and our companies.

This more hostile and uncertain geopolitical context calls for more decisive actions by the European Union to address our economic and technological security. Decisions that are indispensable for securing our social model, for creating opportunities for our citizens, and for making the European Union an attractive place to live and to invest.

Let me emphasise that we are starting based on very solid foundations:

• a highly skilled workforce;
• world-class research;
• industrial excellence;
• a sound financial system;
• deep integration in global trade;
• strong institutional foundations.

We are often criticising the European Union for its organisational and decision-making slowness, for its perceived passivity, for the lack of a single voice in the global arena. But being credible and reliable, involving all players in forming legislation and wanting to partner with other countries, is the other side of the story.

We already had ambitious proposals in our March 2025 European Council conclusions. And we had the political will to deliver, as demonstrated by the leaders' endorsement of the 'One Europe, one market' vision in March 2026. Now, we are equipped with a competitiveness agenda, a sovereignty agenda, and a trade agenda.

First, on the competitiveness agenda.

We need scale, simplicity, and speed. This is about lowering and removing unnecessary barriers between our national markets, especially for small and medium sized companies, to unleash the potential of our internal market, and to ease trade between ourselves.

We should not forget that about 20% of world trade takes place within the European Union. What we need is:

• promoting mutual recognition of qualifications;
• nurturing the 28th regime for our entrepreneurs to scale up;
• simplifying the daily life of our companies and consumers;
• reducing the temptation of member states to reintroduce administrative complexity through the backdoor.

Strengthening our competitiveness is not an end in itself. It is the indispensable ingredient to make our social model more robust, and to create more quality jobs. It is the prerequisite for making the European Union less exposed to the weaponisation of its dependencies in strategic areas, for becoming more autonomous and resilient.

Second, on the sovereignty agenda.

This is about pursuing our ambitious plan for true European defence and security capabilities to protect our citizens and the peace project that defines our Union. It is about regaining control of our energy sovereignty, and our determination to decarbonise our economy in a just and fair way, leaving no one behind. It is about leveraging our excellence in science and research, attracting talent in Artificial Intelligence and other strategic technologies, building the infrastructure and ecosystem needed to accelerate the deployment of new technologies across sectors. It is about introducing, for strategic sectors and technologies, a targeted and proportionate level of 'European preference'.

We are not talking about protectionism. We will fully respect our trade agreements and secure our partnerships with liked-minded countries, for stable and reliable access to critical raw materials and minerals, for the technologies of today and tomorrow.

Third, on the trade agenda.

The European Union is a predictable and reliable trade partner and a source of shared prosperity for more than 80 countries covered by our trade agreements. The European Union is a hub for rules-based trade and a global economic stabiliser.

Recently, we have reached a deal with the Mercosur and with India, each covering trade flows of more than €100 billion for the benefit of almost 3 billion citizens. This will increase the weight of the European Union as an anchor, shaping a new rules-based regional hub network and the rules-based international order itself.

The three agendas - competitiveness, sovereignty and trade - are intersecting and mutually reinforcing.

To achieve these agendas, we need to accelerate work on four partnerships:

• between the European Union and like-minded strategic partners, to strengthen the rules-based multilateral order, providing predictability and stability;
• between our companies and our workers for more quality jobs in a competitive and innovative European economy, on the basis of the principles of the European pillar of social rights, with the active engagement of social partners;
• between the local, regional, national and European levels, to develop new ways to cooperate in areas of joint responsibilities;
• between our citizens and our institutions for a true people-centred approach, achieving better living conditions and strengthening the democratic legitimacy of the European Union.

The European Economic and Social Committee is personifying the roots of the European model, of the European institutional architecture. The role of your Committee is crucial for making Europe's competitiveness a reality, because the European Economic and Social Committee is the civil society lab of our Union. It shows the power of acting together.

All delegates, from the Employers, Workers, to Civil Society Organisations, are committed to make our European project even more a reality closer to our citizens. Your agenda for today's plenary meetings is the best illustration of how you call for an agenda balancing the social, economic, and environmental priorities of social development. You will discuss equality and culture, innovations, and the Savings and Investment Union, which are central to our competitiveness, sovereignty and trade agenda.

In particular, your committee is playing a critical role to make the voice of the young generation stronger, and their preoccupations more central to the European Union institutions.

This is why we decided to bring the housing crisis to the European Council last December. Because affordable housing, is at the core of people's disillusionment with democratic institutions, as showed by your last dossier on tackling housing scarcity from last month. Affordable housing is vital for social cohesion and fairness.

We cannot accept that in some countries of the European Union, notably in the country I know best, young adults would need to pay 100% of their wages for 20-30 years or more to acquire a starter flat. Our young people are the future of Europe, and Europe should be their guarantee for a better future.

And I am very glad to know, that the next European Council Presidency, Ireland, will make housing a priority during the second half of this year.

Dear Seamus, I could recognise myself in numerous statements you made on the European challenges and on the global crisis. Let me quote you: you said recently in an interview 'my north star is ensuring that the voices of ordinary citizens are listened to in European Union decision-making.'

It is more than symbolism: the voice of our citizens is the roots of our democracy.

Our Europe is built on democratic values, it is built on well-functioning democracies. Listening to our citizens, to our civil society is key for the legitimacy of our democracies, even more in a polarised and unequal world.

The European Council will continue to listen to your voice, to act as a loyal partner. You can always count on us.

Thank you.