“Autonomy through competitiveness” to safeguard Europe’s economic strength, social cohesion and global influence

Deepening the Internal Market, reinforcing European industry and ensuring a high level of consumer protection were highlighted as key priorities towards enhanced EU competitiveness, during the Informal Meeting of Ministers for Competitiveness (Internal Market and Industry), held on 3 February 2026 at the “Filoxenia” Conference Centre in Lefkosia, under the Cyprus Presidency of the Council of the European Union.

The meeting was chaired by the Minister of Energy, Commerce and Industry of the Republic of Cyprus, Mr Michael Damianos, and brought together ministers from EU member states and European Free Trade Association (EFTA) countries. Also in attendance were the Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, Mr Michael McGrath, and the Director-General of the Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs, Ms Kerstin Jorna.

The first plenary session, introduced by Director-General Jorna, focused on Strengthening the European Defence Technological and Industrial Base. The ministers noted the sector’s significant growth potential and increasing strategic importance. They agreed on the need to leverage EU instruments, including the European Defence Industry Programme and the forthcoming European Competitiveness Fund, to foster cooperation and joint industrial investment at EU level. They also agreed to modernise the industrial base and address the critical transition phase between research, prototyping, and industrial-scale manufacturing.

In order to enable Europe’s 2,500 defence-related SMEs to grow and compete globally, the importance of a well-functioning Single Market was emphasised, in which defence and industrial policies are closely integrated, and standardisation is recognised as a strategic enabler of interoperability, scalability and reduced external dependency.

From innovation and clean Industry to a fairer Single Market for consumers

During the second plenary session, EU Competitiveness ministers reviewed the progress made on the Competitiveness Compass one year after its launch. They explored ways to overcome persistent structural barriers, such as low AI uptake among EU SMEs, the financing constraints faced by European start-ups, and the regulatory burdens on businesses.

Director-General Jorna introduced the subject once again, with discussions emphasising the importance of effectively implementing the Compass. This is expected to mobilise over €1 trillion across innovation, clean technology and security, ensuring that the EU remains competitive and resilient. Proposed measures include the “AI Continent Action Plan”, the “Clean Industrial Deal”, the “Critical Raw Materials Act”, and the first batch of “Omnibus” simplification packages.

The meeting concluded with a working lunch on the 2030 Consumer Agenda, presented by Commissioner McGrath. The ministers exchanged views on how to build A Stronger, Fairer, and Safer Single Market for European Consumers.  They addressed the need to eliminate barriers that prevent consumers from reaping the full benefits of the Single Market, particularly with regard to cross-border transactions. They also talked about the importance of continuously adapting the regulatory framework to the evolving challenges of the market.

Photos and video

See photos from the Informal Council on the Cyprus Presidency's Flickr account.