IV. COMPETITIVENESS AND GLOBAL ECONOMIC CHALLENGES
- Against the backdrop of the challenging geoeconomic context, the European Council discussed ongoing efforts to strengthen EU competitiveness and strategic autonomy, increase resilience and economic security, promote technological innovation, sustain Europe’s prosperity and social model and improve living standards.
- Recalling the objectives and timelines set out by the European Council in March 2026, the European Council took stock of progress on the ‘One Europe, One Market’ agenda and its delivery in line with the interinstitutional Roadmap. It underlines the urgency of decisive progress on the Single Market, on simplification and reducing administrative burdens, including on further initiatives to speed up planning and permitting procedures, on affordable energy prices and the Energy Union 2030, on fostering Europe’s industrial renewal and innovation and reducing dependencies, and on mobilising investment, in line with the agreed deadlines. In this context, the European Council recalls the need to accelerate work on lowering energy prices, on the clean transition and decarbonisation, taking into account technological neutrality, and on strengthening our resilience. The European Council takes note of the Commission’s intention to come forward with a concrete proposal by mid-July 2026 on the review of the ETS system, including on free allowances, in line with the March 2026 letter by its President, and, at the same time, to present a separate proposal to address concerns expressed by some industrial sectors on ETS benchmarks, while preserving the essential role of the ETS in the climate and energy transition.
- The European Council held a strategic debate on the issue of global macroeconomic imbalances.
- The European Council remains seized of the competitiveness agenda and will return to it at its meeting in October 2026.