Key Points:
- Denmark’s EU presidency is focused on advancing European defense and competitiveness, recognizing the close connection between security and economic strength. Europe must be able to defend itself, which requires sustained investment in security and a resilient economic base.
- Momentum for reform is building, with political support inspired by the Draghi and Letta reports. The EU is advancing regulatory improvements through the Commission’s omnibus approach, which streamlines the existing stock of regulations, and is committed to applying cost-benefit analysis to future rulemaking. Efforts to cut red tape, pursue free trade agreements with partners such as Mercosur, India, and Indonesia, deepen the integration of capital markets, and encourage national structural reforms are seen as essential for boosting competitiveness.
- Budgetary discussions are shaped by the Multiannual Financial Framework (MFF) and must balance limited fiscal space against urgent priorities including defense, the green transition, and research. Europe must prioritize and adopt a smart approach to budgeting, such as linking reforms to funding - similar to IMF conditionality - and mobilizing private capital to supplement public resources.
- Denmark’s experience provides valuable lessons for Europe. Decades of structural reforms and the flexicurity labor market model have helped Denmark build strong economic fundamentals and adapt to shocks. Inclusive policy-making, expert input, and long-term planning horizons have supported resilience and stability, offering a blueprint for effective economic reforms and governance at the European level.
Quotes:
“Everyone is talking about cutting red tape, of course, and having discussions on whether Europe will be the continent with all the museums and the rules - and then the companies went elsewhere. That shouldn't be the case going forward, so we need to cut red tape, and we need to be better at making better rules in the future.” Stephanie Lose
“I think it's also fair to say Europe should consistently pursue, as we are doing, more free trade. We should be an ongoing defender of the good things that come from free trade - the prosperity and wealth that it has given us. So, when we're pursuing trade deals with Mercosur, that we are now getting close to the finishing line with, India, Indonesia, and so on, then that is because new markets are also new markets of opportunity for the companies of Europe.” Stephanie Lose
“The Danish EU presidency has two priorities: European defense and security, and European competitiveness. And those go hand in hand. If you don't have a strong competitive economy, you haven't got enough money for your defense. And if you haven't got a strong defense, and if you don't invest in your security, then you can't be sure that you actually have a competitive economy to live in.” Stephanie Lose
Contributor: Lucas Menut, SECOP.
