Statement by President Mattarella at the 18th COTEC Europe Summit

Mr President of the Republic,

Your Majesty,

I would like to extend my greetings to the Presidents of the COTEC Foundations of Portugal and Spain, as well as my best wishes to the President of COTEC Italia.

Distinguished participants,

Ladies and gentlemen,

First of all, I would like to thank President Rebelo de Sousa for welcoming us here in Coimbra, in the lovely setting of the Convent of St. Francis. I would like to extend my special thoughts and best wishes to the President, commending his determination in representing the values of democracy and dialogue between countries, as well as his tireless efforts in favour of the common project of European integration.

I am also grateful to the organisers of the 18th COTEC Summit for inviting me once again to discuss issues that are crucially important for Europe and for the entire international community – involving a number of influential voices from both the public and private sectors – in this fruitful debate.

The Summit is now celebrating its twentieth anniversary and, as every year, the proposed theme – competitiveness – is a top priority of the agenda of European governments and EU institutions. Swiftly and effectively making progress in this area is widely considered a vital condition for further pursuing the project of continental integration, strategically reviving the European Union and preserving a thriving economy for its Member States and citizens.

We just had the opportunity to hear some very relevant and interesting ideas from Mario Draghi, whose report on the future of European competitiveness is already helping guide the European Commission’s policies for the new Europe in the years to come.

A renewed Europe: more competitive, more resilient and more present on the international stage. This is an epoch-making challenge for our continent, which becomes all the more urgent given the recent developments in the global balances of power.

Therefore, credit goes to our Summit for launching a very topical “Call to Action”: it is indeed urgent – a priority, I’d say – for Europe to take action, because standing still is no longer an option.

The aria we heard earlier, “Nessun dorma” [none shall sleep], could apply to our Union.

The risks of inaction are clearly outlined in both the Draghi and Letta reports on the future of the internal market: the hypothetical consequences for Europe – for example in terms of a decline in material wellbeing or irreversibly drifting away from the technological frontier – would also make it more vulnerable on the strategic and geopolitical fronts, reducing its ability to counter the current alarming disruptions the international order is suffering. Averting such risks is of the essence. To this end, the two reports point out that effective and ambitious measures must be put in place.

I will mention one measure that, given its relevance and urgency, clearly illustrates the consequences of inaction and unjustified reluctance to walk the path of integration. European common defence. Member States have been discussing this for over 70 years, ever since the Treaty establishing the European Defence Community was signed in Paris, in May 1952. The need for it resurfaced, in various and less ambitious forms, between 1998 and 2000.

It is not difficult to imagine what the state of the Union would be today, pitted against the mutated geopolitical context, had we chosen, back then, to take that political leap forward in the integration process. Today, we are lagging behind, trying to catch up with the unfolding events. Hence, we must sense how urgent this is.

The initiatives taken by the European Commission in this area are a first fundamental step and prove there is full awareness of what is at stake. They also underscore a concrete effort in pooling the tools and economies of scale of a supranational system that, in the past, has already shown its ability to adapt to various external shocks.

This ability to adapt to the world around us has always been the driving force of the European Union. It would be short-sighted to consider the Union a construction born in a vacuum. On the contrary, since its inception, Member States have carefully adapted the Union to a constantly changing political and economic environment, with the aim of preserving a spot and a role among the competing forces of the global economy.

How can we preserve this spot today?

First and foremost, we need to strengthen Europe’s ability to grow, to generate economic opportunities and benefits, and to create the conditions for every citizen to have fair access to them. This means working together, with unity of purpose among Member States, to strengthen our assets, starting with the European Single Market – which already significantly contributes to the Union’s gross domestic product, making it one of the world’s leading economies.

Nonetheless, there is still considerable room for improvement. The Letta Report has tabled sound proposals to extend the single market to sectors that have been excluded in the past, such as finance, energy and telecommunications. But also – and this is a fundamental aspect – research, innovation and education, which in the report are part of a “fifth freedom”, alongside the four existing ones: the free movement of goods, services, people and capital.

Since its inception, COTEC has focused on innovation and on the importance of cooperation for developing new technologies. Europe cannot risk falling behind in this area either. First and foremost, we need plentiful, skilled and duly trained human capital, which must also find fertile ground in European-scale research and innovation ecosystems that may attract and retain talent, partially thanks to new investments in infrastructure and joint experimental programmes.

The issue of resources remains a pivotal one when defining an industrial strategy that may boost competitiveness, especially in production sectors with high added value and technological content. And when the extent of challenges is European, it is up to the Union to provide the appropriate tools.

Let us consider the major emerging technologies, the pillars of the new industrial revolution: from advanced robotics to generative Artificial Intelligence, from quantum computers to experiments in clean energy production, from biotechnology to aerospace. For each of thesetechnologies, the magnitude of investment and the robustness of the mechanisms required to establish and protect solid emerging industries, including in Europe, call for cooperation on a continental scale.

The European Union is the most open economy in the world in terms of international trade. It participates extensively and deeply in global value chains. Such characteristics have evidently brought great benefits to European citizens. However, in recent years, we have also become aware of the risks. The strategic dependencies we are exposed to are now clearer.

A clear example is the European Union’s lack of critical raw materials, which are now vital. This situation makes it ever more necessary to have a strategy that focuses on securing procurement. This means entering into agreements with reliable partners to ensure stable supplies, while remaining open to international cooperation – provided that it is underpinned by sufficient guarantees of mutual trust. The credibility of this bond of trust is essential. At this difficult moment in history, we have a duty to restore confidence in the markets and in our partners. Because only through cooperation and exchange can widespread prosperity, sustainable development and, ultimately, peace and security be achieved.

Competitiveness and security – the latter concept now being multifaceted, ranging from economic security to energy security, from cyber security to more conventional forms of security – are therefore closely linked. We must work together for a more competitive, technologically advanced and consequently more secure Europe, capable of reducing its strategic dependencies without undermining the fabric of an international order based on free trade.

This is a daunting challenge. Yet, while not underestimating the gravity of the situation, we have the duty – as well as many good reasons – to be optimistic and to remain so. The Union stands on solid foundations: a market economy that is open to competition and international trade; an independent central banking system; a stable and reliable legal framework; a concept of the rule of law firmly rooted in a strong democratic tradition; active redistribution policies underpinned by the principle of solidarity. We should be proud of this “European exceptionalism” and build on these foundations.

I am confident that Portugal, Spain and Italy will provide the momentum needed to successfully address the major challenges of our time. We cannot shun such a responsibility.

Thank you for your attention.