EU Debates a 'Two-Speed Europe' Model: Implications for Member States

Debating the 'Two-Speed Europe' Concept

According to Главком: At an informal European Union summit held in Belgium on February 12, leaders discussed the 'two-speed Europe' concept, a framework designed to accelerate the economic development of member states. This discussion, a significant step in shaping new EU economic strategies, led to the creation of a new working group. This group will continue developing reforms for the Savings and Investments Union (SIU) and a proposed '28th regime' for businesses.

The 'two-speed Europe' concept has garnered support from several key political figures, including:

• Ursula von der Leyen
• Emmanuel Macron
• Friedrich Merz

Completing the Savings and Investments Union could unlock up to €470 billion in investments, highlighting the scale of these initiatives. In parallel, reports on EU competitiveness prepared by Mario Draghi and Enrico Letta are slated for review in 2024.

Next Steps and New Initiatives

Representatives from 19 countries attended the meeting, while Spain, Portugal, Ireland, Slovenia, Malta, and the Baltic states did not participate. The new working group, led by Italy, Germany, and Belgium, plans to continue its work ahead of the European Council meeting in March. A key focus was the updated proposal for the Banking Union and capital markets union, now rebranded as the Savings and Investments Union (SIU).

Under the new approach, company registration at the EU level could take as little as 48 hours, significantly simplifying the process for entrepreneurs. This debate reflects ongoing tensions within the bloc between deeper integration for a core group and the need for consensus among all 27 members. Should insufficient progress be made by June 2026, the European Commission will consider alternative formats for cooperation, underscoring the dynamic nature of EU reform efforts.

Ursula von der Leyen noted that 'we often move at the speed of the slowest, and enhanced cooperation allows us to avoid that.'

The discussion on a 'two-speed Europe' marks a pivotal moment in the EU's development of policies aimed at fostering economic growth. The establishment of the new working group and the planning of reforms demonstrate the EU's active response to the challenges facing its member states. A focus on streamlining business processes and mobilizing substantial investment could be a key driver for improving the region's economic outlook and stimulating further integration among willing participants.