Session moderated by Pol Morillas, board member of the Cercle d’Economia
António Costa, President of the European Council
The President of the European Council, António Costa, began his speech by highlighting the importance of bringing the European Union closer to the societies and regions that contribute to the prosperity of the European project. In this regard, he emphasized the role of Catalonia in strengthening the European movement, assuring that Europe needs Catalonia’s collaboration “to keep advancing, not only because of its strong pro-European tradition but also due to its economic leadership.” He highlighted the “stability and confidence” boost experienced by the Catalan economy and its contribution to Spain, one of the engines of the European economy.
Regarding the global geopolitical situation, Costa stated that with events like the Russian invasion of Ukraine, “we are facing a historic turning point, a world of fragmentation and uncertainty.” Based on this diagnosis, he reviewed the two urgent priorities at the core of the European Council’s strategic agenda: security and competitiveness.
Starting with security, he emphasized that it is fundamental for Europe to be capable of defending itself. He supported Ukraine in its “legitimate and legal struggle” to achieve a sustainable and lasting peace, which can only be based “on a robust European defense.” For Costa, the threats Europe faces are not only military but also hybrid challenges for which preparedness is necessary. In this sense, he clearly stated his position: “peace without defense is an illusion.” For this reason, he also welcomed Pedro Sánchez’s announcement, the Spanish Prime Minister, to increase defense spending to 2% of GDP, a decision Costa described as “correct and necessary.”
On competitiveness, he directly linked efforts in this area with those in security. The path to more sustainable prosperity, he explained, is “to boost investment in innovation, infrastructure, supply chains, and quality jobs.” Regarding the recent tariff controversy, he said “we must not respond to protectionism with more protectionism” and stressed the need to find solutions through dialogue: “we have proposed eliminating tariffs on both sides of the Atlantic.” However, he warned that when necessary, the European Union will act to protect its interests, industries, and workers.
The President of the European Council described the current situation as an opportunity for the EU to promote higher growth, boost internal demand, and present itself as a committed and trustworthy partner to the world. Facing this opportunity, he assured that the Union is expanding collaborations with international partners, highlighting, for example, the trade agreement with Canada: “44% more SMEs export to Canada compared to the period before the agreement.”
Speaking about China, he explained that Europe needs to build a balanced relationship, stating “we must not allow unbalanced trade nor let Europe be used to offload products penalized by US tariffs.” The key, he asserted, is economic regulation that creates a level playing field.
Costa also explained that one of the Council’s priorities is to reduce bureaucracy, by 25% for all companies and by 35% for SMEs, a goal they are working toward. He concluded his speech by reiterating the value of the role of Catalan industry and society in strengthening the European Union and overcoming current challenges.
Technology gap, financing, and relations with the United States
After the speech, a conversation began with Pol Morillas, board member of the Cercle d’Economia, who asked Costa about the EU’s ability to close the technological development gap with other competitors. The President of the European Council highlighted the quality of some European spheres such as the education system, the innovation and creation system, and entrepreneurial capacity. The difference with the United States, he said, lies in the difficulty of turning a good idea into a good product and bringing it to market.
Regarding the possibility of securing funding for all the areas the Union wants to address, Costa stated that Europe needs more own resources, to review current policies, and to modernize European cohesion, which he said “is not a powerful instrument to make the leap to economic convergence.” To make this leap, he explained, a competitiveness fund is needed to mobilize more resources.
Finally, speaking about the period of uncertainty Europe is experiencing in relation to the United States, he said the big negotiation Europe must face is not about tariffs but about defense. He explained that the best way to strengthen the alliance with the Americans is to strengthen Europe’s strategic autonomy to achieve a new balance. For Costa, the tariff war makes no sense, since “if we want to assume more responsibilities in defense, we must strengthen our economy, not weaken it.”
