PES backs Spain’s plan for a competitive Europe that protects its social model and strengthens its open strategic autonomy

The Party of European Socialists (PES) welcomes the non-paper presented by Spanish Prime Minister Pedro Sánchez to the President of the European Council, António Costa, as a concrete and forward-looking contribution to the debate on Europe's competitiveness.

At a time of geopolitical instability, accelerating technological change and climate urgency, Europe must reinforce its economic strength without undermining its social foundations or the quality of life of its citizens. Europe's social model is a key driver of sustainable competitiveness. The Spanish proposal makes clear that competitiveness, decarbonisation, social cohesion and open strategic autonomy are mutually reinforcing objectives.

The ten-point agenda underlines the need to deepen integration and further harmonise rules within the Single Market, remove remaining internal barriers, and avoid deregulation that would weaken social or environmental standards. It calls for unlocking public and private investment at scale, strengthening Europe's financial and technological capacity, advancing digital innovation, and strengthening Europe's industrial base. It also recognises the importance of deepening Europe's global economic partnerships. Crucially, it affirms that quality jobs, fair labour standards and social cohesion are structural pillars of long-term competitiveness.

The proposal rightly places decarbonisation and clean, affordable energy at the centre of Europe's economic strategy. Accelerating the green transition is key to modernising industry, reducing dependencies and creating quality jobs across Europe.

The PES also strongly underlines the importance of preserving the integrity and predictability of the EU Emissions Trading System (ETS). Climate ambition is a cornerstone of Europe's economic strategy. Climate policy is not an obstacle to competitiveness; it is a driver of industrial modernisation, investment certainty and long-term economic resilience. Regulatory stability is essential for businesses planning the green transition. Calls to suspend or weaken agreed climate instruments risk undermining confidence, delaying investment and weakening Europe's global leadership.

The social dimension must remain at the heart of Europe's competitiveness agenda, including the promotion of quality jobs, fair labour standards, social cohesion and access to affordable housing as a key element of citizens' quality of life.

PES President Stefan Löfven stated:

"Europe cannot compete by lowering standards or weakening workers' rights. Our strength lies in our social model, our capacity to invest together and our ability to act strategically in a changing world. Spain's initiative shows that competitiveness, social justice and the green transition go hand in hand. Europe must be economically strong, socially fair and capable of shaping its own future."

As discussions continue on Europe's long-term competitiveness strategy and the next Multiannual Financial Framework (MFF), the PES calls for ambitious and coordinated action at EU level. Europe cannot afford fragmentation, regulatory instability or underinvestment. Its future depends on deeper integration, scaled-up public and private investment, accelerated green and digital transformation, and a renewed commitment to social progress.

The PES will continue to work with progressive forces across Europe to translate this vision into concrete European action.