The Shifting Sands of European Unity: A Two-Speed Europe Emerges
Is the era of unified progress within the European Union drawing to a close? Recent discussions among key European leaders suggest a significant shift is underway. At an informal summit in Belgium, leaders from France, Italy, Germany, and other nations signaled support for pursuing initiatives within smaller groups, a concept increasingly referred to as a “two-speed Europe.” These ideas, debated in Liège, are expected to be further developed at the next European Council meeting in March.
The Urgency for Change: Competitiveness and Crisis
European leaders acknowledge the demand for swift action, citing a loss of competitiveness. Many initiatives have been stalled by indecision and disputes. French President Emmanuel Macron emphasized the urgency, seemingly setting aside disagreements with German Chancellor Friedrich Merz, and both now advocate for a renewed focus on policies that stimulate economic growth.
Geopolitical crises have highlighted the limitations of requiring consensus among all 27 member states. Threats from former U.S. President Donald Trump – including proposals to annex Greenland and wavering support for Ukraine – alongside the influx of goods from China, served as catalysts for reassessment.
Von der Leyen’s Roadmap: A Single Market Push
At the March summit, European Commission President Ursula von der Leyen will present a “Single Europe, Single Market Roadmap and Action Plan.” This plan encompasses reforms aimed at reducing bureaucracy and mobilizing both private and public capital to support the growth of European startups. Leaders are scheduled to vote on the plan later this spring.
Even without unanimous agreement, the EU intends to utilize “enhanced cooperation,” a legal provision allowing smaller groups of countries to adopt initiatives without jeopardizing common policies. While this approach has existed for years, leaders have historically avoided it due to concerns about fracturing the community.
According to one anonymous diplomat, enhanced cooperation could incentivize greater decisiveness, as “no one wants to be left out of decision-making.”
Capital Markets and Strategic Autonomy
One area ripe for enhanced cooperation is the Capital Markets Union – an effort to create a capital market modeled after the U.S. System. This would involve establishing an entity similar to the U.S. Securities and Exchange Commission, but requires the support of all 27 members, as well as approval from Dublin and Luxembourg, where many funds are located. These locations are currently hesitant to relinquish their authority.
Von der Leyen’s roadmap will outline goals in areas such as telecommunications, capital markets, and energy, with a target completion date of the end of 2027. The first proposal, to be presented on March 18th, is the “28th regime” – a unified corporate law across the EU designed to support startups, allowing for 100% online registration within 48 hours and facilitating cross-border expansion.
Discussions in Liège reportedly yielded consensus on four key areas: unlocking European savings for investment in core EU industries, addressing high energy costs, securing new trade deals, and bolstering Macron’s “buy European” policy.
Persistent Divisions and the Path Forward
Despite the progress, differences remain. The single market and the Mercosur trade deal, for example, represent a sticking point between Paris and Berlin. Prior to the formal discussions, 19 European leaders met to discuss key themes, excluding Spain, Ireland, the Baltic states, and Slovenia. This guest list was determined by Merz, with attendees sharing a common view on reducing bureaucracy and promoting freer trade.
Disagreements similarly exist between individual nations and the European Commission, with von der Leyen attributing many industrial challenges to national regulations.
Macron left the summit expressing optimism, stating he and Merz were now “always” good friends. He recently emphasized the need for greater European autonomy, characterizing Washington’s policies as “anti-European.” He also touched upon the topic of federalism, which has gained traction amid deteriorating relations with the U.S.
Echoing former ECB President Mario Draghi’s views on federalism, Macron cautioned against “fantasies” associated with the term, advocating instead for a “pragmatic federalism” – rapid integration and joint decision-making. He suggested exploring options for cooperation if decisions aren’t reached within six months, a sentiment aligning with the discussions in Belgium.
Frequently Asked Questions
Q: What is a “two-speed Europe”?
A: It refers to a scenario where some EU member states move forward with deeper integration in certain areas, while others opt to remain at a slower pace or exclude themselves.
Q: What is “enhanced cooperation”?
A: A legal mechanism allowing a minimum of nine EU member states to implement policies even if others don’t participate.
Q: What is the Capital Markets Union?
A: An initiative to create a unified capital market across the EU, similar to the one in the United States, to facilitate investment and economic growth.
Q: What role does Ursula von der Leyen play in these changes?
A: As President of the European Commission, she is proposing a roadmap for a “Single Europe, Single Market” to drive integration and competitiveness.
Did you understand? The concept of a two-speed Europe has been debated for decades, but recent geopolitical events and economic pressures have given it new momentum.
Pro Tip: Retain an eye on the European Council meetings in March and spring 2026 for key decisions that will shape the future of European integration.
What are your thoughts on the future of European integration? Share your comments below and join the discussion!
