Developments in Middle East can serve as catalyst for EU

The Middle East situation tin enactment arsenic a catalyst for further European integration, arsenic it has made wide the request for Europe to make its strategic autonomy, Enrico Letta, erstwhile premier curate of Italy, tells Kathimerini, up of his visit to Athens connected Tuesday. However, without a stronger, much integrated and much competitory European economy, there tin beryllium nary existent autonomy, helium says.



Letta is the writer of the 2024 thought-provoking report, “More than a market,” connected the deepening of the single market, which is simply a notation constituent for the plan of European policy. The deadline acceptable by the European Commission for the completion of the single market, 2028, will beryllium a governmental δοκιμή of Europe’s quality to enactment and signifier its ain future, helium says.



The erstwhile premier says the adoption of a diversified and innovation-based improvement exemplary is simply a situation for Greece, but besides the full European South.

Letta will enactment connected Tuesday successful a treatment astatine a closed lawsuit organized by Kathimerini, where helium will speak astir the aboriginal of Europe. Later on, helium will take portion successful a speech with the president of the Eurogroup, Kyriakos Pierrakakis, connected EU competitiveness, organized by the Foundation for Economic and Industrial Research (IOBE) and the IE Competitiveness Hub.

Do you judge that the caller developments successful the Middle East and Europe’ s stance toward them and the US could service arsenic a catalyst for further European integration?

Yes, these developments tin beryllium a catalyst. And I think we are already seeing it, arsenic they made wide that strategic autonomy has go a necessity. But strategic autonomy cannot beryllium built by 27 countries acting separately. It requires integration. Energy and defence are wide examples. No European state unsocial tin unafraid its vigor supplies, physique a credible defence concern base, oregon support its interests successful a world progressively defined by powerfulness politics. This is why the Single Market matters so much. It is the backbone of Europe’s strategic capacity. Without a stronger, much integrated and much competitory European economy, there tin beryllium nary existent autonomy.

What is the projected economical outgo of the war for Europe and however should the EU proceed regarding vigor independence? Is greenish transition the answer?

According to the IMF, the economical interaction of the war successful the Middle East is peculiarly superior for Europe due to the fact that the daze comes supra each done energy. In a terrible scenario, the EU could travel adjacent to recession, with ostentation approaching 5 percent. This shows where Europe’s main vulnerability lies. Our dependence connected imported vigor and earthy materials exposes our system to outer shocks that we bash not control. The strategic reply is the greenish transition. Energy independency cannot mean replacing 1 outer dependency with another. It indispensable mean producing much cleanable vigor astatine home, completing the vigor single market, investing successful grids and interconnections, and accelerating renewables. This is the close direction, and it is affirmative that the European Commission is pointing precisely this way with AccelerateEU. The greenish transition is an biology necessity, but today it is besides a substance of economical information and strategic autonomy.

Greek manufacture and households look precocious vigor prices. Given that your study calls for deeper integration successful energy, however bash you spot this task is progressing?

Greek manufacture and households are paying the terms of a structural weakness successful the European vigor market. This is precisely why deeper vigor integration is so important. Without stronger grids, much interconnections and a truly European energy market, terms differences crossed Member States will stay too high. But there has been existent progress. The European Grids Package presented by the Commission successful December 2025 is 1 of the astir important attempts successful caller years to code this weakness. It simplifies permitting, sets clearer timelines and identifies 8 Energy Highways to tackle the astir captious cross-border bottlenecks. For Greece, this is peculiarly relevant. The Great Sea Interconnector, 1 of these Energy Highways, tin amended information of supply, support the integration of renewables and assistance trim the isolation that still affects parts of the European vigor system. The information that the three European institutions person included these dossiers successful the One Europe, One Market roadmap is simply a strong governmental signal. They person committed to o.k. the record by the extremity of 2027. The absorption is the close one. 

Do you judge that the deadline of 2028 the European Commission acceptable for completing the single marketplace is feasible? What will beryllium the cost, if we don’t succeed?

Yes, I think it is feasible. And a definite optimism of the will is indispensable if we want to execute it. The governmental committedness is there, and the periodic monitoring mechanisms included successful the roadmap supply a factual structure to scope this nonsubjective and code imaginable difficulties on the way. The outgo of nonaccomplishment would beryllium immense. And earlier being economic, it would beryllium strategic. Europe is present facing a wide choice. It tin determination towards deeper economical integration and found itself arsenic a true planetary actor. Or it tin stay fragmented and judge economical and strategic irrelevance. In that case, Europe would extremity up depending connected the ascendant powerfulness of the moment, alternatively of shaping its ain future. That is why 2028 should beryllium seen arsenic a governmental δοκιμή for Europe’s capableness to act.

The Savings and Investments Union, a large extremity acceptable successful your study “Much much than a market,” according to Eurogroup’s President Pierrakakis, “could beryllium the biggest governmental victory of our generation.” Do you think Europe tin win this battle, fixed the disagreements by definite subordinate states?
 
Yes, I judge Europe tin win this battle. The information that each three European institutions person included the Savings and Investments Union arsenic a cardinal constituent of the One Europe, One Market roadmap shows that a wide organization statement has present emerged. Of course, difficulties will look when negotiations determination to the idiosyncratic files. Some nationalist absorption is inevitable, particularly connected issues that touch fiscal markets, supervision and the allocation of capital. But this is precisely the strength of the roadmap. By negotiating respective dossiers together, it becomes easier to scope a compromise. Concessions and governmental victories tin equilibrium each different crossed antithetic files. This is why I americium optimistic. 

Why is the Savings and Investments Union and the Banking Union important for European citizens?

They are important for two main reasons, astatine two antithetic levels. For households, they tin connection caller opportunities to marque amended use of backstage savings. Many Europeans support a ample stock of their savings successful existent accounts, where they make small value implicit time. A deeper and much integrated superior marketplace would springiness citizens much accessible, diversified and charismatic concern opportunities, helping them summation their fiscal wealth. For Europe arsenic a whole, this is conscionable arsenic important. If mobilized properly, backstage savings tin assistance concern the EU’s large strategic objectives. The greenish transition, vigor security, innovation and defenze will each necessitate monolithic investment. Public resources unsocial will not beryllium enough.

Do you expect Europe to hold connected a communal indebtedness issuance – a historically arguable contented – and for which specific objectives?

EU institutions already contented antithetic forms of indebtedness today, but these instruments are still not afloat integrated. A realistic way guardant would beryllium to physique connected the instruments that already exist, making them much coherent, much visible and much reliable for planetary investors. This would nonstop a strong awesome to planetary markets and assistance strengthen the euro arsenic a planetary currency. The constituent is amended debt, not simply much debt. This would beryllium some an important and achievable result. The planetary discourse makes this step progressively necessary. Europe needs deeper and much liquid fiscal instruments if it wants to concern its strategic priorities, from defence to the greenish transition, and trim its dependence connected outer actors. I think the clip is becoming ripe for this discussion. The world astir Europe has changed. That should propulsion us to beryllium much pragmatic and much ambitious astatine the aforesaid time.

As you are visiting Greece, however bash you value its caller economical performance? Do you judge it has moved accelerated capable successful terms of growth?

Greece’s caller economical show is intelligibly positive, and this is widely recognized astatine European level. The predetermination of Kyriakos Pierrakakis arsenic President of the Eurogroup besides reflects the assurance that Greece has built successful Europe. Looking ahead, I would framework the situation successful broader Southern European terms. Southern Europe has tremendous strengths, from quality superior to entrepreneurship, from vigor imaginable to its strategic presumption successful the Mediterranean. This is true for Greece, for Italy and for different countries successful our region. The cardinal question present is however to turn these strengths into a much diversified and innovation-driven maturation model, capable to make stable and charismatic opportunities for young radical and highly qualified workers. This is not lone a Greek issue. It is simply a shared European and Mediterranean priority.

The vast bulk of Greek businesses are SMEs and this doesn’t look to alteration successful spite of authorities incentives. Is further European integration going to assistance oregon is there a hazard that galore SMEs will disappear, since they cannot go European champions?

Further European integration will beryllium a success lone if it includes SMEs. In Greece, arsenic successful Italy and successful astir European countries, SMEs are the backbone of the κοινωνικά and economical system. This is why immoderate measurement that damages SMEs would beryllium a self-inflicted wound. I was very wide connected this constituent successful my study connected the aboriginal of the Single Market. Completing the Single Market indispensable mean making beingness easier for SMEs, reducing fragmentation, simplifying rules and giving them amended entree to finance, skills, integer tools and cross-border opportunities. The improvement of European champions tin besides assistance SMEs, if it is accompanied by strong contention rules updated to bespeak the planetary context. Larger and stronger European companies tin make much structured supply chains, successful which SMEs tin find reliable clients, standard their activities and go portion of broader European concern ecosystems. So I bash not spot integration arsenic a menace to SMEs. I spot it arsenic an opportunity, provided that SMEs are placed astatine the centre of the project. A stronger Single Market should assistance them grow, cooperate and compete, without forcing each institution to go a giant.