Von der Leyen floats smaller-state alliances to bypass EU deadlock

European Commission President Ursula von der Leyen has argued that European Union member states should be prepared to move forward in smaller groups rather than wait for unanimous agreement among all 27, as the bloc grapples with persistent economic weakness.

EU leaders are due to gather on February 12 at Alden Biesen in Belgium for a meeting aimed at “brainstorming” ways to address Europe’s economic malaise.

In a letter sent to EU capitals on February 9, von der Leyen identified the malfunctioning single market as a central cause of the bloc’s difficulties. She wrote that differing national market rules effectively act as a 45% tariff on goods and a 110% tariff on services within the EU.

“Our ambition should always be to reach an agreement among all 27 member states,” von der Leyen said in the letter. However, she added that the EU “should not shy away from using the possibilities foreseen in the treaties on enhanced cooperation,” referring to a mechanism that allows at least nine countries to move ahead together without the need for full consensus.

At the same time, EU capitals have increasingly been forming informal alliances to push their positions on key policy issues, including so-called ‘Made-in-Europe’ requirements, which von der Leyen described as a “necessary instrument.”

Germany’s Social Democrats launched the E6 grouping in January, bringing together the EU’s five largest economies along with the Netherlands. Meanwhile, Christian Democrat Chancellor Friedrich Merz has joined forces with Italy and France on cooperation related to critical minerals. Northern European countries, for their part, have coordinated opposition to a French-led push for stricter ‘Made-in-Europe’ rules.

The enhanced cooperation mechanism — a cornerstone of the “multi-speed Europe” concept endorsed by von der Leyen — has been used only a handful of times since its creation in 1997. However, she suggested it could now be mobilised to tackle the EU’s weak level of single-market integration.

Barriers to trade within the EU have been repeatedly highlighted as a major drag on economic growth. “Diverging national rules and trading conditions across member states deter businesses from achieving their full potential,” von der Leyen said.

She also noted that the Commission plans to target “gold-plating,” a practice particularly common in her home country of Germany, where national authorities add extra requirements on top of EU rules, through a focused initiative.

According to the letter, the European Commission, working together with member states and the European Parliament, aims to approve a “joint roadmap on the single market” at a leaders’ summit scheduled for March.