Summarizing the challenge, Macron put it succinctly: "We know exactly what we need to do. That is clearly laid out in the Letta Report, the Draghi Report, and elsewhere. Now the question is how we can implement it... It is about short deadlines. I want to particularly emphasize this, because for me the end of this year is absolutely the time to implement this agenda."
Macron was right, and his observation still holds true today. Europe knows very well what needs to be done. A year before the summit, the former President of the European Central Bank, Mario Draghi, also issued a stark warning about Europe's competitiveness. Among the many significant insights in his report on this topic was his conclusion that Europe faces an annual investment gap of around EUR 800 billion.
Since then, pressure on Europe has only intensified. US protectionism is increasing. Competition from China is intensifying. Security threats are drawing ever closer to everyday life in Europe. At the same time, Europe continues to burden itself with lengthy approval procedures, fragmented regulatory frameworks, and barriers within its own single market.
Europe must push ahead with reforms
Europe cannot afford to keep delaying everything. The good news is that European companies are ready to engage as part of the solution. That was the thinking behind the Copenhagen Pledge, an economic and investment declaration presented at the Copenhagen Competitiveness Summit. The 28 companies behind it pledged to increase their investments in Europe by an average of 50% by 2030—provided that Europe's top policymakers implement the necessary reforms to strengthen competitiveness and security.
Global companies such as Airbus, Siemens, SAP, Thales, Saab, and Novo Nordisk are ready to invest more in Europe's future. But investments can only bear fruit if the seed falls on fertile ground. Capital alone will not automatically strengthen Europe just because it is available. Without the right framework conditions, Europe risks missing a historic opportunity. European companies need simpler rules, faster approval procedures, affordable energy, stronger infrastructure, and a fully functioning single market.
The gap between political ambition and policy reform is still far too large
That is why the Copenhagen Pledge declaration contains not only investment commitments but also a concrete blueprint with recommendations for policy reforms to boost Europe's competitiveness. Many of these proposals tie into the Draghi Report, which called on European policymakers to simplify regulation, reduce reporting burdens, promote innovation, and strengthen Europe's ability to scale companies across borders.
Progress remains behind expectations
But Europe's progress since the Copenhagen summit has been disappointing. A new competitiveness tracker shows that only four out of 35 key initiatives have been officially adopted. Meanwhile, 21 initiatives remain stuck in early planning phases, where they cannot yet contribute to reducing regulatory burdens, lowering compliance costs, or attracting new investments.
The gap between political ambition and policy reform is still far too large. Even where progress has been made, challenges remain. Three of the four adopted initiatives focus on simplification, yet new and inconsistent requirements continue to negate many of the benefits for companies.
Europe does not suffer from a lack of reports or strategies, but from a lack of will to implement. The most important task is clear: Europe must finally complete and strengthen its single market. It is absurd that European companies within the world's largest trading area still face national barriers, fragmented implementation, and different administrative requirements. At a time when external pressure is mounting from all sides, Europe must no longer allow internal fragmentation and national particular interests to limit its room for maneuver.
In today's world, Europe cannot control many things—from wars and geopolitical instability to global trade tensions. But Europe can very well decide whether it wants companies to spend their time navigating 27 different systems instead of driving innovation and expanding their investments across the continent.
Europe as a safe investment destination
The companies remain ready to do their part. Recent data from Danish Industry's corporate panel show a clear shift in sentiment: Danish companies increasingly see Europe as a safe haven in an unstable world. Danish investments in the United States have risen by 170% since 2019, while investments in EU countries have largely stagnated. But now companies are signaling a stronger willingness to expand their economic engagement in Europe.
This shift is significant. It shows that companies prefer to invest closer to home when conditions are stable and predictable. Moreover, it confirms that Europe has a unique opportunity to attract investments that might otherwise flow elsewhere. Europe should seize this opportunity willingly.
Companies are ready to contribute to building a stronger Europe that can withstand external pressure and secure future prosperity. But European policymakers must meet this commitment with action and political courage. We know what needs to be done.
Lars Sandahl Sørensen is CEO of the Confederation of Danish Industry (Dansk Industri).
Copyright: Project Syndicate, 2026, www.project-syndicate.org
