Enrico Letta on China

Enrico Letta's recent focus regarding China is framed through his high-profile report on European competitiveness, where the nation is presented as a major geopolitical and economic rival to the European Union. His central thesis advocates for deep integration within the EU, specifically completing the Single Market by 2028 and advancing the Capital Market Union, as the primary means for Europe to avoid being economically marginalized between the assertive US and the state-backed model of China. He suggests that Europe's structural weaknesses, such as regulatory fragmentation and insufficient scale, leave it unable to effectively counter the industrial policies and massive state investments seen in both rival powers.

This position implies a pragmatic, defensive stance toward the EU's economic sovereignty, contrasting with historical EU approaches. While his report details domestic EU reforms needed to build champions and protect innovation—such as creating an optional '28th regime' for European companies to operate under a unified status—the urgency is driven by the external competition. This strategic necessity to boost European economic power is highlighted alongside concerns that Europe risks being squeezed by the economic assertiveness of Washington and Beijing, necessitating a coordinated, urgent response rather than incremental change.