We have what it takes - EP President Metsola addresses EUCO in Budapest 

Dear colleagues,

We are meeting here in the shadow of the devastating floods in Albacete, Valencia, and across eastern and southern Spain that left so many dead and missing. We need to show to communities that Europe stands shoulder to shoulder with them and with all those whose lives have been upended. It is at these moments that people need to see fast, flexible, and tangible results from us.

The European Parliament is ready to help in any way during the process of recovery, including through flexibility measures for financial assistance. And we will do it fast. This needs to be the principle behind our response to the aftermath of natural disasters that we see more of around Europe. 
 
It is about being able to act faster and with the agility that we need, not only with responding to events but having the foresight to predict what challenges we will face and what Europe needs.  

The one thing that is certain to me and to the European Parliament is that there exists no common challenge that we would be better able to overcome if we act alone or in silos, than if we act in sync with each other. Strength of purpose and global influence grow for all when we act together. 

That’s how we need to look at the big geo-political issues we all face. Be it issues as diverse and as consequential as the Russian war in Ukraine, the need to conclude trade agreements around the world, how we bring back peace and stability to the Middle East; Europe’s enlargement; the elections in Moldova and Georgia; how we face up to China, and how we strengthen the Transatlantic relationship. 

Though we feel the impact of the vote this week with elections in the United States, my belief is that we need to continue focusing on the solutions we are looking to deliver right here in Europe: we need action, regardless of who is in the White House.

After June’s election in Europe, this is another call to action for us. Action on ensuring our own defence and security; action on growing our economies and ensuring our competitiveness; action on tackling crippling bureaucracy; action on red-tape and over-regulation.

Our mentality is not “America elects and Europe reacts”, but “Europe acts”. 

We find ourselves at the cusp of the most profound and consequential transformation the world has seen in decades. With global trade slowing, geopolitical divides growing, technology rapidly advancing, and the way global economic powers perceive their industries relative to ours shifting - Europe’s place on the world stage is facing extraordinary pressure. We cannot allow ourselves to be squeezed. We are looking at global retreats towards increased isolationism at a time when the world needs the opposite. 

The European people made it clear at the polls last June: we cannot sit back and accept things as they are. Whether that is on the regulatory front, on reclaiming our economic strength, broadening horizons for innovation, or how policies and legislation filter down to communities and business. To shape a future that our people - that our children - can look forward to with hope and enthusiasm, we need to take bold steps.

The good news is that we do not need to start from scratch. We have many success stories we can build-upon. The first electric batteries? Invented by an Italian. The first modern programmable computer? Thanks to German engineering and technology. Bluetooth? Invented by an engineer from The Netherlands in Sweden. The GSM system? It is a worldwide standard thanks to the European Union. Now we have the world’s first comprehensive Artificial Intelligence Act, the Digital Services and Digital Markets Acts - all of which are legislative gold standards.

So when we talk about building a more competitive Europe we do not need to be talking in terms of ‘whatever it takes’ - we already have what it takes. We just need to make better use of the market and the talent that is already there, and find the political will to do what is necessary. 

The Draghi and Letta reports offer some important insights to this effect, and a solid foundation from which we can build upon. Today, I want to outline what the European Parliament sees as the first essential steps.

Number one: we need to tap into Europe’s inherent spirit of innovation.

As a share of GDP, the European Union spends one third less on research and development than other major economies in the OECD. This gap translates into fewer patents, less innovation, and slower productivity gains. Just look at our automotive sector - falling behind in tech risks thousands of jobs.  

AI offers a chance to reverse this trend. But only if we ramp-up investment and accelerate the digital transition. Faster innovation can help us make up lost ground, boosting productivity as a key driver of economic growth. The same is true when it comes to decarbonisation. I understand it is a challenge, but it is also a unique opportunity. 

This is about shaping our own future. About building a Europe capable of asserting its autonomy. And by independence I do not mean isolationism. On the contrary, open and fair trade that is based on international rules is crucial. Think about raw materials for example. We need to intensify our efforts by expanding our network of trade agreements, especially by completing those currently in the pipeline. 

Number two: we need to take reducing excessive bureaucracy more seriously. 

When I visited Member States in the run-up to the European elections, businesses - from multinationals to micro-enterprises and SMEs - consistently mentioned the need for simpler, more efficient, and coherent regulation. How in some cases, companies could face hundreds of reporting or information compliance obligations, a year. And how in most cases, the smaller the company, the heavier the bureaucratic burden it bears. The focus for the next mandate needs to be better, smarter, regulation and a focus on implementation.

This does not mean doing away with principles that we are so proud of, but in many cases, what we are seeing is a duplication (sometimes even a triplication) of obligations, which encumbers companies operating internationally and makes it difficult for SMEs to scale-up. This cannot and will not be conducive to a competitive economy in the long term. 

We need to listen to what our businesses, our farmers, our industries are telling us. To give our companies the space to focus less on meeting administrative requirements and more on implementing their idea. One where, you might fail. But one that makes it easier for you to get back up again. 

And in that way, I welcome the commitment of the President of the Commission to streamline legislation and minimise excessive reporting requirements. This is a positive first step and the European Parliament is eager to build on it. As you know, Commissioner-designate hearings are currently taking place, and our members will be scrutinising candidates on that basis. 
Number three: we need to do more to end fragmentation and champion investment.

While we should refrain from drawing comparisons with the United States, allow me to make one exception. Since the turn of the century, if Europe had grown as much as our friends across the Atlantic, some economists estimate there would be 11 million more jobs and EUR 300 billion more in taxes available for re-investment or to go towards lowering 60% of Europe’s deficit. 

Scale matters. Growth creates jobs, it incentivises better savings opportunities for our people, it generates wealth, and it increases the EU’s competitiveness. So why aren’t companies growing in Europe? Because our markets are still too fragmented. We see it in the energy, defence, and telecoms sectors for instance. We also see it in Banking and Capital Markets. 

Companies in Europe face huge hurdles, and they start from the very beginning - getting the first million Euros to scale-up, in fact. This is not due to a shortage of private savings in the European Union. It is because regulatory barriers hold back investment. 

Meaning that even start-ups with brilliant ideas and access to a common market, run into brick walls. Of course, we still have huge success stories that we can be proud of, but ultimately, the single market works best when it is integrated.

Completing the Savings and Investments Union for instance, would help build a bigger EU venture capital for industry. It is the fuel that start-ups and SMEs need to stay, grow, and thrive right here in Europe. It is how we are able to unlock the investments we need to drive our communities forward, while making it much easier for the public sector to finance its share. 

Taking bold steps now is not just a matter of policy - it is how we, elected representatives, tackle the everyday realities of poverty, unemployment, and inequality. It is how we are able to pay back the debt that we have incurred. It is how we honour the responsibility we share, not just to Europe’s economy, but to every person relying on it. 

Ultimately, prosperity is at the foundation of a stable global order. It is the strongest antidote to geopolitical tensions, including and especially, the ones on our doorstep. Very soon, the tragic anniversary commemorating 1,000 days of Russian aggression on Ukrainian soil will take place. All against a backdrop of instability in the Middle East, and Russia’s persistent attempts to destabilise Georgia, Moldova, and the Western Balkans. 

Europe has always been home to innovators, entrepreneurs, builders, reformers, and thinkers. We must revive this spirit - standing united to build Europe up, instead of letting it crumble down. Let me assure you that you have the European Parliament’s - and my personal - commitment when it comes to taking the next steps. 

Thank you.