Overcoming COVID-19: Laying the foundation for a more resilient EU

Last week, the European Commission presented an ambitious recovery plan, including a new instrument ‘Next Generation EU’ to boost the EU’s spending capacity. The Commission’s proposal aims to tackle the ripple effects of the COVID-19 crisis on the European economy and puts forward an unparalleled financial commitment, along with strong policy measures to strengthen the Single Market as well as to enable the green and digital transformations. It has the potential to be one of the engines that will restart Europe’s economy, creating new jobs and prosperity to benefit all citizens. However, there is still a tough balancing act in front of us, which requires management of the short-term economic impact of the health emergency, while laying the foundations for what is coming next. 

 

AmCham EU has published a statement on the proposal last week and will continue to support policymakers throughout the entire recovery phase, therefore we have put forward some short-term recommendations to ensure that Europe does not stall on its road to recovery.

News
1 Jun 2020
Overcoming COVID-19: Laying the foundation for a more resilient EU

The crisis is far from over. As it evolves, new challenges emerge. Member States must tackle the effects of containment on households and businesses and develop exit strategies to allow for economic activity to start again after weeks of ‘lockdowns’, while continuing to protect the health and security of their citizens. The road to economic recovery will be long. The difficult task ahead for leaders in Europe, and around the world, is to continue to address all these issues simultaneously.

 

The EU economy’s ability to bounce back will undeniably depend on the success of crisis response measures. Short-term measures will need to be complemented by long-term policies and investments, the combination of which should support the new European economy that is both green and digital.

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The Dual-Use Regulation gives Europe a common framework for economic security, but divergent national implementation is weakening it. The same transaction can be assessed differently depending on the Member State, with guidance on cloud and software-as-a-service transfers remains unclear. Licensing processes, meanwhile, still assume a physical consignment rather than digital workflows, which sits poorly with how integrated global businesses operate. Companies bear the added cost and legal uncertainty, while the security benefit is limited. A single EU-wide approach to intangible transfers and closer alignment with the US and UK would make controls more predictable and let authorities focus on genuine risks. Read how the revision of the Dual-Use Regulation can deliver a harmonised and future-proof framework for Europe.

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The Single Market is only as simple as its Member States make it

This blog is authored by Malte Lohan, CEO, AmCham EU.

What exactly is ‘single’ about a market where the same product needs different national markings, a cyber incident can require dozens of reports and a professional qualification may stop being recognised at the border?

These examples come from different sectors, but they point to the same contradiction. The EU creates common rules, yet companies still encounter national requirements that divide Europe into separate markets in practice.

The stakes are high for American companies invested in Europe. The United States is the largest single source of inward foreign direct investment (FDI) into the EU. In 2025, American companies invested more in Europe (53%) than they did the rest of the world combined. This has been the case for decades. Much of this appeal lies in the promise of a large, prosperous Single Market.

Yet there are signs that this position is coming under pressure. While Europe remains the leading destination for US investment, its share of total US outward FDI has fallen to its lowest level in more than four decades. More recent indicators point in the same direction too. EY’s 2026 European Investment Monitor found that 943 US companies invested in Europe last year, 16% below the annual average of 1,124 over the previous five years. To reverse these trends, Europe needs to make itself a more attractive place to invest, beginning with a more integrated Single Market.

That is why the simplification agenda cannot lose steam – in Brussels and national capitals. In her September State of the Union address, European Commission President Ursula von der Leyen highlighted the need for EU-wide coordination. ‘Simplification cannot be a one-way street’, she said. ‘All levels have to have skin in the game’.

As EU leaders check in on progress under the ‘One Europe, One Market’ roadmap at this week’s European Council meeting, they should look closely at how national choices affect companies operating across borders. That means addressing three related but distinct problems: gold-plating, uneven implementation and the national barriers that continue to fragment the Single Market.

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After frying frites, bitterballen, churros or arancini, many people don’t think twice about disposing of used cooking oil. Yet one litre of waste oil can contaminate one million litres of water, according to the European Commission. At Cargill’s facility in the port of Ghent, Belgium, used cooking oil and other residual oils and fats are treated as raw materials, cleaned and converted into biodiesel for trucks and ships. This puts circularity into practice on an industrial scale at one of Europe’s largest facilities of its kind. Since production began, Ghent’s biodiesel is estimated to have reduced greenhouse gas emissions by 1,188,000 tonnes compared with fossil diesel, equivalent to taking about 550,000 cars off the road for a year. Read the full story on Invested in Europe.

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