TL:DR – António Costa downplays two-speed Europe proposal at EU leaders’ summit

• António Costa, president of the European Council, stated on Friday that enhanced cooperation is a “non-issue” for EU leaders.
• Countries including France, Spain, and Denmark support using enhanced cooperation for initiatives lacking consensus.
• Ursula von der Leyen, president of the European Commission, mentioned potential use of enhanced cooperation for introducing the Savings and Investment Union by June.
• French President Emmanuel Macron emphasised the need for a new European economic agenda by the summer.
• Costa highlighted existing doubts about the scope of the 28th regime, necessary for standardising corporate structures across member states.

António Costa dials back two-speed Europe debate, says it’s a ‘non-issue’

António Costa, the President of the European Council, downplayed expectations for a two-speed Europe during a press briefing on Friday, following an informal summit of EU leaders where the proposal was discussed. His remarks are significant as they suggest a reluctance to embrace a radical shift in the bloc’s operational model despite calls for enhanced cooperation among member states.

Costa stated, “It’s a non-issue,” emphasising that the topic did not garner serious discussion during the summit. While countries like France, Spain, and Denmark showed support for forming smaller groups to adopt initiatives, Costa reiterated that existing frameworks already allow for varying levels of integration within the EU, such as Schengen and the eurozone.

EU Leaders Discuss Enhanced Cooperation and Economic Reform

Enhanced cooperation gained attention in December when EU leaders agreed to issue a €90 billion loan to Ukraine without the involvement of Hungary, Slovakia, and the Czech Republic. Ursula von der Leyen, President of the European Commission, mentioned potential legislative applications for enhanced cooperation, including the Savings and Investment Union and the 28th regime, aimed at standardising company formation across member states.

Von der Leyen indicated that enhanced cooperation for the Savings and Investment Union could be initiated as early as June if progress remains insufficient. She stated, “Often we move forward with the speed of the slowest, and the enhanced cooperation avoids that.”

French President Emmanuel Macron urged for a new economic agenda to be finalised by the summer, emphasising the need for unity among the 27 member states.

Costa Aims for Unity Among EU Member States

Despite discussions of enhanced cooperation, Costa aimed to manage expectations, suggesting that the necessary consensus would eventually form among member states. He noted that countries have concerns about the breadth of the 28th regime but acknowledged a general agreement on its importance for entrepreneurs facing diverse corporate frameworks.

Costa specifically pointed to Luxembourg as a country that remains sceptical about the centralisation of financial oversight in the European Securities and Markets Authority (ESMA), highlighting past statements from Luxembourgish Prime Minister Luc Frieden regarding potential burdens of increased regulation. While Ireland, Malta, and Cyprus had previously expressed reservations about the proposals, they are now considered on board.

Reflecting on the summit, Costa reiterated a shared “sense of urgency” among member states, acknowledging external pressures and the need for collective action to ensure stability and security within the EU.
“