A joint initiative by Rome and Berlin calls for accelerated reforms, institutional flexibility, and a renewed focus on competitiveness.

A new political alignment between Italian Prime Minister Giorgia Meloni and German Chancellor Friedrich Merz is emerging as a potential catalyst for structural change within the European Union. In a joint letter addressed to EU member states, the two leaders call for accelerated reforms and a clearly defined implementation timeline, emphasizing that the Union can no longer afford procedural delays in a rapidly evolving geopolitical landscape.

According to diplomatic sources, twenty member states — including France — have endorsed the initiative and are expected to convene ahead of the upcoming European Council meeting. The central concept uniting the signatories is urgency: a shared recognition that the EU must respond decisively to mounting economic and geopolitical pressures.

From Political Vision to Operational Timeline

The joint proposal stresses the need to move beyond general policy declarations toward a structured “chronoprogram” with measurable deadlines and reforms to be adopted or implemented by the end of the year. This approach reflects a growing consensus among several European capitals that competitiveness, regulatory efficiency, and strategic autonomy must transition from long-term ambitions to immediate priorities.

In Rome, preparatory meetings have reportedly focused on strengthening the EU’s single market and reducing bureaucratic burdens that limit innovation and investment. Berlin has expressed similar priorities, particularly in relation to regulatory simplification and industrial competitiveness.

Diverging Economic Approaches, Shared Sense of Urgency

While France supports the initiative’s strategic direction, differences remain regarding financing mechanisms. President Emmanuel Macron has advocated for large-scale European investment — reportedly in the range of €1.2 trillion — potentially financed through common EU debt instruments. Germany has traditionally taken a more cautious fiscal stance.

Despite these differences, both Paris and Berlin appear aligned on the broader diagnosis: Europe faces intensifying competition from the United States and China in key sectors such as artificial intelligence, advanced manufacturing, energy transition, and defense technologies.

Recent analytical reports on European competitiveness and economic convergence have further reinforced concerns about widening productivity and investment gaps between the EU and other major global economies.

Institutional Flexibility and “Enhanced Cooperation”

One of the more consequential aspects of the initiative involves the potential use of “enhanced cooperation” mechanisms. This EU procedure allows a group of willing member states to move forward on specific policy areas without requiring unanimous agreement from all 27 members.

The mechanism has previously been applied in limited contexts, including financial support frameworks. Its broader use would represent a significant institutional shift, enabling faster decision-making in areas deemed strategically urgent.

Government officials indicate that such an approach would be considered selectively and pragmatically, on a case-by-case basis, particularly where traditional unanimity rules risk delaying action.

The “28th Regime”: Toward a Unified Legal Framework for Business

A key proposal under discussion is the introduction of a so-called “28th regime” — a unified European legal framework that companies could voluntarily adopt instead of navigating multiple national systems.

Under this model:

  • Start-ups and scale-ups expanding across several EU countries could operate under a single European legal regime.

  • Investors establishing facilities in multiple member states would benefit from harmonized rules.

  • The single market would evolve from a primarily regulatory space into a more integrated legal environment.

If implemented, this reform could significantly reduce administrative complexity and strengthen cross-border economic integration, particularly for high-growth sectors.

Strategic Context

The initiative emerges against a backdrop of increasing geopolitical uncertainty and economic competition. Investment disparities in artificial intelligence, defense capabilities, and industrial innovation between the EU, China, and the United States have intensified debates over Europe’s strategic positioning.

By advocating for accelerated reforms, regulatory simplification, and institutional flexibility, the Meloni–Merz alignment signals a potential recalibration of the EU’s policy tempo.

Whether this initiative will lead to comprehensive structural transformation depends on consensus-building within the European Council. However, the emphasis on urgency, competitiveness, and legal integration suggests that discussions on the future architecture of the European Union are entering a more decisive phase.

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