PES leaders: A stronger European economy is the answer to global economic pressure

Leaders of the Party of European Socialists (PES) met today ahead of the informal European Council retreat convened by António Costa, which will focus on strengthening the Single Market in a new and increasingly challenging geoeconomic context.

PES leaders welcomed President Costa's initiative, stressing that in today's geoeconomic environment, strengthening Europe's economy and the Single Market is no longer optional but a strategic imperative - an existential matter for Europe's economic and social model.

Participants underlined that progress requires a forward-looking agenda. It is urgent to strengthen Europe's long-term competitiveness and economy while upholding environmental and social protections - not weakening the regulatory framework. Europe's competitiveness cannot be left to conservative narrative of more deregulation but must be built on reindustrialisation, investments, innovation and a strong "Made in Europe" approach.

PES leaders' discussions focused on a clear progressive pathway to strengthen Europe's competitiveness:

• reindustrialising Europe by building on the Green Deal and the Clean Industrial Deal;
• advancing a "Made in Europe" strategy, combined with a Buy European approach and Public procurement revision with social conditionalities, must strengthen Europe's industrial base, quality jobs, innovation capacity and open strategic autonomy;
• investing in sustainable and long lasting competitiveness and innovation through public and private means, including by advancing the Savings and Investment Union, and through a ambitious EU budget, enhanced own resources and joint borrowing for strategic autonomy and security;
• reducing energy prices for citizens and businesses and ensuring that Europe's energy market design delivers efficient outcomes aligned with Europe's strategic and climate objectives;
• ensuring quality jobs, training, skills, collective bargaining, and a just transition for European workers, together with high quality public services and infrastructures;
• and empowering the Single Market both internally and externally, by reducing fragmentation and deepening integration, and reinforcing Europe's engagement in global trade with high standards.

PES leaders agreed on the need to support Small and Medium-sized Enterprises (SMEs), ensure fair competition enforcement and strong consumer protection; while putting in place several horizontal enablers to foster European champions in strategic sectors - always conditional on respect for workers' rights, fair taxation and binding climate targets - while rejecting blind deregulation and safeguarding Europe's social and environmental standards.

PES leaders stressed that strengthening the Single Market must also serve a clear purpose: delivering sustainable prosperity, social and economic convergence, and economic security for citizens and businesses across Europe.

Stefan Löfven, President of the PES, said:

"Strengthening Europe's Single Market is a strategic and existential task for our model. Europe's competitiveness must be built on reindustrialisation, a strong 'Made in Europe' approach, reducing energy prices through clean, affordable, and secure energy, and jobs and skills, not on deregulation or a race to the bottom. This is how Europe reduces dependencies, strengthens its resilience, and secures prosperity for every worker, citizen, and enterprise. With António Costa in the European Council, Teresa Ribera in the European Commission and Iratxe García Pérez in the European Parliament, the progressive family has the leadership and responsibility to deliver on this agenda. It is urgent to act, for today and for the future of our economic fabric."

Participants at the PES high-level meeting ahead of the informal European Council retreat, held via video call on 11 February.

The PES will continue to engage actively, calling for decisive political leadership to strengthen Europe's economy, uphold cohesion as a driver of competitiveness, and ensure that Europe's global strength is built on sustainability, fairness, and social progress.

The discussion took place as European leaders prepare for a decisive debate on competitiveness, building on the reports presented more than a year ago by Mario Draghi and Enrico Letta. Those reports clearly warned that Europe must reduce fragmentation, strengthen its industrial base and empower the Single Market to compete globally while preserving social cohesion and sustainability.

The progressive family has the political framework and the leadership to drive this agenda forward, fully aligned with the strategic direction outlined by the reports and supported by strong progressive leadership across the European institutions, including President António Costa in the European Council, Teresa Ribera, Executive Vice-President for a Clean, Just and Competitive Transition, in the European Commission, and Iratxe García Pérez, President of the S&D Group in the European Parliament.

Participants' list

• Stefan Löfven, President of the Party of European Socialists
• António Costa, President of the European Council
• Lars Klingbeil, Vice-chancellor and Federal Minister of Finance, co-leader of Social Democratic Party (SPD), Germany
• Teresa Ribera, Executive Vice-President for a Clean, Just and Competitive Transition
• Dan Jørgensen, European Commissioner for Energy and Housing
• Iratxe García Pérez, PES 1^st Vice-President, President of the S&D Group in the European Parliament
• Katarina Barley, Vice-President of the European Parliament; PES Executive Vice-President
• Tanja Fajon, Deputy Prime Minister and Minister of Foreign and European Affairs of Slovenia; PES Vice-President
• Nora Mebarek, Member of the European Parliament, PES Vice-President
• Kati Piri, Member of Parliament, PES Vice-President
• Giacomo Filibeck, Secretary General of the PES
• Paul Magnette, President of the Socialist Party (PS), Belgium
• Siniša Hajdaš Dončić, President of the Social Democratic Party (SDP), Croatia
• Antti Lindtman, Chair of the Social Democratic Party (SDP), Finland
• Olivier Faure, First Secretary of the Socialist Party (PS), France
• Klara Dobrev, Member of the European Parliament, leader of the Democratic Coalition (DK), Hungary
• Elly Schlein, Secretary of the Democratic Party (PD), Italy
• Magdalena Andersson, Leader of the Swedish Social Democratic Party (SAP), Sweden
• Luca Menesini, President of the PES Group in the European Committee of the Regions
• Nicolas Schmit, President of FEPS (Foundation for European Progressive Studies)
• Zita Gurmai, President of PES Women
• João Martins Pereira, President of Young European Socialists (YES)
• Yonnec Polet, PES Deputy Secretary General
• Thomas Vaupel, PES Deputy Secretary General
• Saar Van Bueren, PES Deputy Secretary General