Cyprus Times

EU Moves Towards 'Two-Speed' Europe, Driven by Major Economies

Published February 16, 2026, 14:10
EU Moves Towards 'Two-Speed' Europe, Driven by Major Economies

The European Union appears to be moving towards a 'two-speed' structure, aiming to strengthen its economic competitiveness against the US and China. Germany is leading this effort, promoting the creation of a permanent working group consisting of the six largest Eurozone economies (Germany, France, Italy, Spain, Poland, and the Netherlands). This group will take the lead in economic reforms, bypassing the need for unanimity that often delays decisions. The idea is supported by European Commission President Ursula von der Leyen, who favors 'enhanced cooperation' between member states, a framework that allows for the promotion of reforms with the participation of at least nine countries. The initial group of six countries could form the core to which others may join, if they wish. Eurogroup officials note that while such initiatives are positive, the practical contribution of a group of six countries may be limited for achieving substantial reforms. However, the formation of the working group is a step toward strengthening European competitiveness. The first 'test' for this approach will be the Savings and Investment Union, as French President Macron has warned that if no progress is made by June, the solution of 'enhanced cooperation' will be considered. The success of this effort will be an important indicator for the future of European integration and the EU's ability to respond to geopolitical and geo-economic challenges.