Introduction
On February 12, 2026, European Union leaders gathered at Alden Biesen Castle in Belgium for an informal retreat, marking a pivotal moment in the bloc’s economic strategy. Facing aggressive economic rivalry from the United States and China, the EU unveiled its most ambitious plan yet to deepen and unify its internal market: "One Europe, One Market" [1]. This initiative is not just a slogan—it is a defensive and strategic response to the geopolitical challenges of our time, designed to transform the EU’s 450 million-consumer market into a cohesive, competitive force.
The Urgency of Action
The EU’s single market, one of its greatest achievements, is under pressure. Intra-EU trade in goods has declined to just 22% of GDP, while services lag at 7.9% [2]. Fragmentation, regulatory hurdles, and slow decision-making have weakened Europe’s ability to compete with the US and China. As European Council President Antonio Costa warned, "Europe must reinforce both its competitiveness and its autonomy to preserve our social market economy and the European way of life" [2].
At the retreat, leaders agreed on a wide-ranging set of commitments to accelerate the integration of the single market. European Commission President Ursula von der Leyen declared, "One Europe, one market … this is our ambition," emphasizing the need to act swiftly to ensure Europe’s businesses can survive and thrive in an era of intensifying global competition [1].
Key Agreements and Ambitions
1. Accelerating the Single Market
EU leaders committed to:
- Speeding up the completion of a savings and investment union to unlock capital for growth.
- Reviewing merger rules to help create "European champions"—companies capable of competing on a global scale.
- Cutting red tape to make it easier for businesses to start and operate across borders [1].
2. The "28th Regime": A Pan-European Company Framework
A groundbreaking proposal, the "28th Regime" (EU-INC), promises to revolutionize how businesses operate in Europe. Under this framework, entrepreneurs can incorporate a company digitally in just 48 hours, with the ability to operate seamlessly across all 27 member states. This "28th state" approach aims to eliminate the fragmentation that has long hindered cross-border business, shifting decision-making from unanimity to qualified majority voting to avoid deadlocks [3,4,5].
3. A Concrete Timetable
The European Commission will present a detailed plan in March 2026, outlining how to deepen the single market and setting a concrete timetable for implementation. The goal is clear: to make Europe the most attractive place in the world for startups, investors, and innovators [1,5].
Defensive and Strategic Context
The "One Europe, One Market" initiative is a direct response to the economic strategies of the US and China. The EU is determined to defend its interests, using its market power to counter external coercion and ensure fair competition. As President Costa noted, the EU "has the power and the tools to do so and will do so if and when necessary" [2].
The initiative also addresses the fragmentation of the single market, which has been identified as the "number one problem" for EU research and innovation. By simplifying regulations and fostering cross-border collaboration, the EU aims to scale cutting-edge technologies and boost its global competitiveness [6].
Political Backing and Future Outlook
The European Parliament has already signaled strong support for the initiative, with a broad cross-party majority endorsing the plan [3]. This political backing is crucial, as it ensures that the EU can move forward with bold reforms without being bogged down by internal divisions.
The message is clear: Europe is no longer content to play catch-up. With "One Europe, One Market," the EU is taking proactive steps to secure its economic future, protect its industries, and assert its place as a global leader.
Conclusion: A New Era for Europe
The "One Europe, One Market" program is more than just a response to China’s "One Belt, One Road" or US economic dominance—it is a declaration of Europe’s determination to shape its own destiny. By unifying its market, cutting bureaucracy, and fostering innovation, the EU is laying the foundation for a stronger, more resilient economy.
As Ursula von der Leyen put it, the ambition is to create a market that works for all Europeans, ensuring prosperity and autonomy in an increasingly competitive world.
References
[1] Cyprus Mail, "EU leaders agree to accelerate single market, in struggle to compete with US and China," February 12, 2026.
[2] Consilium, "Strengthening the single market in a new geoeconomic context," 2026.
[3] Euronews, "What is EU-INC and its plan to make European businesses borderless?" February 3, 2026.
[4] The Economist, "Europe proposes a magical fix for its half-finished single market," February 5, 2026.
[5] Fieldfisher, "EU Inc.: towards a single European company framework?" January 28, 2026.
[6] Science|Business, "Fragmented single market is ‘number one problem’ for EU research," February 5, 2026.






