Enrico Letta: Europe Must Unify Markets to Counter China and the US

The rise of China in sectors ranging from electric vehicles to complex machinery has created what Brussels officials describe as a 'China Shock 2.0.' A recent paper from the Jacques Delors Institute reveals that this displacement is now extending into health and biotechnology, areas where European industry previously held a firm footing. Letta argues that the current fragmentation across 27 national lines prevents European enterprises from reaching the critical mass necessary to compete on the world stage.

Scaling up remains the most dangerous phase for European startups, as many collapse or are sold off before achieving maturity. Letta advocates for a unified regulatory framework, suggesting that the implementation of a 28th regime—a single set of EU-wide business rules—is essential for survival. While geopolitical pressures from Washington, Beijing, and Moscow mount, Letta remains optimistic that member states are aligning on competitiveness, even if they remain deeply divided on emotionally charged issues like migration and the multi-annual budget. The upcoming address by Ursula von der Leyen will serve as a crucial test of whether the bloc can translate this consensus into a coherent strategy for economic assertiveness.