The EU is thrashing out a more muscular set of economic policies

by Marcus Liu - Business Editor
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EU Shifts Focus to Competitiveness and Single Market Deepening Amidst Ongoing Ukraine Conflict

Brussels – As the war in Ukraine continues, the European Union is simultaneously intensifying its efforts to bolster its economic competitiveness and deepen its single market. This dual focus was highlighted by European Commission President Ursula von der Leyen in a letter to EU heads of state ahead of an informal meeting on Thursday, February 19, 2026, dedicated to the bloc’s competitiveness.

Von der Leyen’s Vision for a More Competitive EU

Von der Leyen’s eight-page proposal emphasizes that a strong economy is “a prerequisite for our freedom to choose our own destiny.” She urged leaders to support the Commission’s efforts to simplify European legislation, aiming to ease the day-to-day operations of businesses by streamlining administrative processes. This initiative includes a call for a “comprehensive regulatory deep house cleaning” to eliminate outdated provisions, inconsistencies, and redundant procedural requirements.

Building Alliances for Deregulation

The push for simplification is gaining traction, with a growing anti-bureaucracy alliance forming between Germany’s Friedrich Merz and Italy’s Giorgia Meloni. This suggests a broader consensus is building around the need to reduce regulatory burdens on businesses within the EU.

Trade Agreements and Single Market Expansion

Despite ongoing controversies surrounding the EU-Mercosur trade deal, which has sparked protests in member states like Spain, von der Leyen too advocated for the conclusion of new trade agreements globally. She stressed the importance of “deepening” the single market by removing internal barriers to facilitate cross-border growth for companies operating within the EU.

EU Support for Ukraine and Response to Russia

This renewed focus on economic strategy occurs against the backdrop of the EU’s ongoing response to Russia’s war against Ukraine. The EU has implemented measures against Russia and continues to support Ukraine and its people [Consilium.europa.eu]. The EU’s response includes sanctions against Russia and solidarity measures for Ukraine [Consilium.europa.eu].

US Perspective and Potential for Resolution

Recent statements from the US suggest a potential for a deal to end the conflict, however, these claims contradict the current assessment that Russian President Vladimir Putin is not interested in negotiations [The Guardian].

Key Takeaways

  • The EU is prioritizing economic competitiveness alongside its support for Ukraine.
  • Ursula von der Leyen is advocating for significant simplification of EU legislation.
  • There is growing support for deregulation within the EU, particularly from Germany and Italy.
  • The EU continues to pursue new trade agreements despite ongoing controversies.
  • Deepening the single market remains a key objective for fostering economic growth.

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