The ex-Italian prime minister stresses to Euronews that in order to face off against Washington and Beijing, the EU must maintain unity, emphasizing that «the real struggle is over European sovereignty.»
To remain competitive against the United States and China, dubbed «giants,» European Union member countries need to prioritize the bloc’s sovereignty above individual national independence, Enrico Letta told Euronews.
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His remarks precede significant 2027 elections, which might deeply influence the EU’s political equilibrium, especially the presidential contests in France.
Following Marine Le Pen’s decision last week to join the presidential race, concerns have grown in Brussels about a potential fracture in relations with Paris. A decade ago, the National Rally leader advocated for France’s withdrawal from the Eurozone.
Since then, she has shifted her stance, pledging to reform the European Union internally and championing a coalition of sovereign nations.
Addressing Euronews’ interview program 12 Minutes With, Letta disputed the idea that national sovereignty should take precedence over European sovereignty amid today’s intricate economic environment, labeling it «false.»
«Favoring national sovereignty is akin to handing a gift to Americans and Chinese,» stated the former Italian prime minister, who currently serves as Dean at IE University (Universidad Instituto de Empresa) and leads the Jacques Delors Institute.
«It’s crucial to understand that national sovereignty operates at an inadequate scale. To match the competitiveness of the Americans and Chinese, the proper scale is European,» he elaborated, underscoring that «the fundamental contest is over European sovereignty.»
He further noted that this approach preserves national identities, citing the introduction of the euro and the displacement of former currencies as examples, alongside the political resistance that accompanied these changes.
«In Italy, as well as in France and Germany, skepticism was widespread due to fears about losing national identity tied to the former currencies,» Letta recalled.
«Today, however, the euro stands as a significant achievement. It has strengthened our global position without erasing our distinct identities — Italians, French, Spanish, and Germans remain proud of their heritage despite the euro.»
The former prime minister contended that the EU can replicate this success in sectors like energy, digital connectivity, and financial markets, enabling enhanced competitiveness without sacrificing national character.
‘Greenland changed everything’
Establishing integration in vital areas — such as creating an energy union, consolidating digital services, and overcoming capital market fragmentation — was a key focus in Letta’s 2024 report, Much More Than a Market.
This document informed the EU’s competitiveness strategy, the One Europe, One Market roadmap, discussed by Letta and various ministers during the General Affairs Council meeting in Brussels on Tuesday.
The EU has faced longstanding criticism, including from Letta himself, for its slow response to global economic shifts.
Nevertheless, he pointed to a noticeable acceleration since the European Council retreat in Belgium’s Alden Biesen castle last February, where leaders focused on enhancing EU competitiveness and integrating the single market.
«Politically, the Greenland crisis was a catalyst,» Letta noted, referring to President Trump’s intention to acquire Greenland, an autonomous territory rich in minerals within the Kingdom of Denmark.
«This episode pushed European leaders to get serious about applying and implementing the two reports, intensifying efforts to strengthen the European single market.»
‘Investing in EU gives citizens better return on savings’
A central proposal from Letta’s 2024 report calls for deeper integration of the currently fragmented EU financial markets into a Savings and Investments Union (SIU). The SIU’s purpose is to mobilize private capital and reduce the gap between Europeans’ substantial bank savings and the funding needs of businesses.
«Europe is the continent of savers, yet it inefficiently utilizes its savings,» Letta asserted.
The report highlights that while private savings in the EU amount to €33 trillion, approximately €300 billion of European household savings flow abroad, predominantly into the US economy.
«Channeling savings into the SIU — a European savings label — would yield better returns than current alternatives,» Letta explained.
He also emphasized the necessity to connect savings with investments in «the real economy,» attributing the US’s leadership in AI to this financial linkage.
«This progress stems not from public funding but from private capital and investments, enabled by their financial market structure,» Letta remarked.
«During the 1990s, Europe exported mobile phones to American consumers. We must return to this era of European innovation and technology excellence, which depends on securing private investments.»