Tariffs and bureaucracy are holding back the EU. Merz and Meloni want reforms

Germany and Italy are sounding the alarm – according to them, the European Union is lagging behind the US and China and, without fundamental reforms, risks a decline in living standards and a loss of sovereignty.

In a joint policy paper prepared for the February EU summit, they call for concrete steps to revive competitiveness. They propose reducing bureaucracy, speeding up project approvals, and deeper market integration, particularly in the areas of services, energy, and digital technologies.

They also point to internal barriers that significantly increase the cost of trade between EU countries.

German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni are calling on the Union to commit to reforms at the February summit and confirm them at the EU Council in March.

At the same time, they emphasize the need for an ambitious trade policy, including faster conclusion of agreements with partners such as India and the ASEAN group. They warn that, if necessary, the EU should be prepared to protect its market with defensive instruments.

(reuters, pir)