In a bid to bolster European competitiveness and secure essential financing for its green, digital, and defense transitions, Spain’s Economy Minister Carlos Cuerpo and his counterparts from Germany, France, Italy, Poland, the Netherlands, and Luxembourg have unveiled the Competitiveness Laboratory. The initiative aims to drive deeper capital market integration across the EU by studying and launching projects that can channel domestic savings into credit for the private sector.
At a meeting held in Brussels at the Spanish Representation to the EU, Minister Cuerpo stressed the importance of acting as a vanguard in developing a more cohesive internal market. The first project to be detailed is the creation of a pan-European savings product with common characteristics for all EU citizens. This product is designed to help keep around €300bn in savings within the bloc each year, thereby financing strategic investments necessary for economic security and autonomy.
The initiative comes as the EU faces enormous investment needs—up to €800bn for its green and digital transition and hundreds of billions for defense spending. By enhancing capital market integration, the Competitiveness Laboratory aims to prevent capital from flowing overseas in search of higher returns, thereby supporting the twin transitions and Europe's long-term growth.
Spain introduced the idea last October and has since garnered strong support from the other major economies and the European Commission’s Financial Services department, led by Maria Luis Albuquerque. The Commission is also finalising its Savings and Investment Union communication, an effort to mobilise European household savings for domestic investment rather than attracting capital to the US.
With plans to finalize project details by June and launch the savings product in the latter half of the year, EU leaders hope that the Competitiveness Laboratory will provide a robust framework for financing the investments that will drive Europe’s future competitiveness.
