A coalition of prominent European free-market think tanks, including the Warsaw Enterprise Institute, Prosum Foundation, and Foro Regulación Inteligente, has sent a strongly-worded open letter to European Commission President Ursula von der Leyen. They urge a comprehensive overhaul of European Union regulations and governance to foster innovation and boost economic growth amid fierce global competition.
Author: Szilvia Kecsmar
In the letter, the think tanks argue the EU’s current regulatory framework is excessively burdensome and fragmented, making Europe less competitive compared to economies like the US and China. They highlight particular concern with rigid Environmental, Social, and Governance (ESG) criteria and climate-related policies, which they claim are driving European companies to relocate elsewhere, undermining both innovation and economic prosperity.
The signatories advocate several significant reforms:
Decentralizing EU Legislative Power: Allowing individual member states greater flexibility to propose legislation, thus weakening the Commission’s current legislative monopoly.
Completing the Single Market: Fully removing barriers that impede cross-border trade in services and capital flows, especially in digital and financial sectors. This includes introducing a ‘capital passport’ that would simplify expansion across EU states.
Boosting Tech and Startup Ecosystems: Creating uniform and innovation-friendly regulations for startups to enable the rise of a European Silicon Valley equivalent, strengthening Europe’s global tech position.
These policy proposals are grounded in comprehensive analyses, presented over several years by various think tanks involved, each advocating the urgency of regulatory modernization to maintain Europe’s global relevance.
While the European Commission has not directly responded to the open letter, recent Commission initiatives signal partial alignment with these concerns. President von der Leyen recently unveiled plans aimed at reducing regulatory complexity, supporting energy-intensive industries, and ensuring Europe’s economic resilience amid global competition. She emphasized a commitment to “removing ties that hold us back,” reflecting some shared objectives with the think tanks’ demands.
However, von der Leyen’s initiatives have sparked criticism from environmental advocates. Groups like the European Environmental Bureau argue that deregulation efforts risk weakening Europe’s pioneering climate commitments, potentially causing environmental harm.
The think tanks’ open letter arrives at a critical juncture, as the EU grapples with a fragile balance between its ambitious sustainability goals and the urgent need to strengthen economic competitiveness. The outcome of this debate will significantly influence Europe’s ability to remain economically vibrant and strategically relevant.
The think tanks conclude their letter with a stark warning: without decisive action toward market-oriented reforms, Europe risks turning into an “economic museum,” celebrated for past successes but economically irrelevant in a rapidly evolving global market.
With discussions intensifying in Brussels, the Commission faces the challenge of aligning diverse interests—navigating between economic growth demands and maintaining stringent environmental and regulatory standards. The EU’s next steps in responding to these proposals will likely define its economic trajectory in the coming decades.
The full open letter is accessible on the Warsaw Enterprise Institute’s website.
Cover photo credit: https://audiovisual.ec.europa.eu/
Szilvia Kecsmar is a writer, journalist, and media informatics specialist, serving as the editor-in-chief of CEA Magazine.
