António Costa at the Círculo de Economía: "The EU is like the Sagrada Familia: a crazy and perpetually unfinished project."

BarcelonaThe President of the European Council, António Costa, the Portuguese, recognizes Catalonia's role as a European economic engine and clings to multilateralism in a world in crisis, which Trump's return to the White House has turned upside down. He made this clear this Tuesday at the annual meeting of the Círculo de Economía (Economic Circle) in Barcelona. Costa sought to convey optimism: from the pandemic, the climate crisis, and the euro crisis, the EU has emerged "stronger and more resilient." "We will do it again. Perhaps the EU is a bit like the Sagrada Familia, a vast, far-fetched, idealistic project of historic dimensions and with a complex and perpetually unfinished architecture, in which each generation contributes its grain of sand to face the challenges of its time."

The President of the Council, which represents the 27 EU member states, began his speech with a few greetings in Catalan because, he said, it is important to "bring the EU closer to societies and regions" and for Europe to be built "from the bottom up." "Catalonia has always been at the forefront of the European project," as an economic and pro-European engine. "As a Portuguese who shares with you that piece of land that is the Iberian Peninsula, but also as a European who has always admired it, I am glad to see that Catalonia has returned, that it has once again actively contributed to the stability and growth of Spain," he stated.

At a "historic turning point" with the Russian invasion of Ukraine and in a world filled with uncertainty, "we need this Catalan and Spanish contribution to stability," Costa said. He also called for improved energy interconnection with the EU, "also to reduce the risk of incidents and blackouts like those last week," and for "increasing investment in grid security."

Costa praised Spanish Prime Minister Pedro Sánchez for increasing military spending to over 2% of GDP because "in an increasingly dangerous world, Europe must be able to defend itself, not only against strictly military threats, but also against hybrid challenges and threats." He also clarified that rearmament must be "a single European plan, not 27," and recalled how the Ukrainians found that the German-made Leopard tanks sent to them by several European countries "worked differently" because each country had made its own adaptations.

Response to the trade war

In the trade war with Trump's United States, Costa said that Europe "should not respond to protectionism with protectionism." He criticized the fact that tariffs "are a tax on citizens and businesses" and a drag on economic growth, and advocated for dialogue with Washington. But he also sought to present the crisis as an opportunity for Europe to present itself to the rest of the world as a reliable trading partner with Canada, the Latin American countries of Mercosur, Africa, India, and Southeast Asia. Regarding China, he said that "a mutually beneficial relationship must be built": "We must not allow it to use Europe as an outlet for products punished by US tariffs. The response to the challenges posed by China must be predictable economic rules that will prevent any future systemic distortions, which will set the groundwork for a solution."

Regarding domestic markets, Costa has promised less red tape for businesses (a 25% reduction overall and a 35% reduction for SMEs) and measures to prevent electricity prices from depending on the volatility of fossil fuel markets, as well as greater fiscal leeway for states to encourage greater public investment.