Former Italian Prime Minister Enrico Letta has used the Festival dell'Economia in Trento to issue a stark call for Europe to formally declare its independence from external economic and strategic powers, warning that the continent's chronic vulnerabilities now threaten its ability to respond to crises like disruptions in energy supply chains.
Speaking at the annual economics forum on May 23, 2026, Letta—who authored the influential "Much More Than a Market" report on the future of the European single market—argued that the bloc's dependencies in energy, defense, and finance represent "the great element of our weakness" and that only a comprehensive "Declaration of Independence" can restore genuine sovereignty to member states.
Why This Matters
• Energy security: The EU remains significantly dependent on energy imports, with growing exposure to external suppliers including US liquefied natural gas (LNG).
• Defense reliance: European NATO members still depend on the United States for critical military capabilities and strategic support, despite rising defense spending across the bloc.
• Financial fragmentation: Europe's fragmented capital markets limit the continent's investment capacity for green and digital transitions.
• Geopolitical vulnerability: Global supply chain disruptions continue to pose risks to European economic stability and growth.
The Context Behind Letta's Appeal
Letta's intervention comes amid mounting evidence that the European Union has failed to meaningfully reduce its exposure to external shocks since the pandemic. The Italy-based economist and former premier, who led the country from 2013 to 2014 and now serves as a key advisor on EU economic integration, delivered his remarks during a session at the Trento gathering, which runs from May 20 to 24.
His core argument: Europe cannot afford to keep lurching from one short-term crisis response to another—whether COVID-19, energy supply disruptions, or geopolitical tensions—without building structural independence in critical sectors. "We cannot only make short-term interventions every time a crisis forces our hand," Letta said. "We must do the things that protect us in the medium and long term."
What Letta Proposes: Key Areas of EU Independence
Letta's report and remarks in Trento outline an agenda for integration across several critical domains, all aimed at reducing the EU's strategic vulnerabilities:
Energy: The former premier called for deeper renewable energy integration across borders, improved grid connectivity to lower system costs, and mechanisms to reduce over-reliance on any single external energy supplier. The goal is to build a more resilient and diversified energy landscape.
Defense: Letta argues that Europe needs a more coordinated defense architecture with shared procurement and joint capabilities. "We need to do for the army and European defense what we did for the euro," he said, pointing to the model of integration that created the single currency.
Financial Markets: A key proposal is improved integration of Europe's fragmented capital markets to mobilize domestic savings for investment in the green and digital transitions.
Connectivity and Digital Infrastructure: The report highlights that the EU depends on non-EU countries for significant portions of its critical digital products and services. Building independent infrastructure is presented as a sovereignty imperative.
Critical Raw Materials: Europe remains dependent on external suppliers for essential inputs to batteries, wind turbines, and electric vehicles. Letta urges accelerated domestic sourcing and diversified partnerships.
What This Means for Residents
For Italians and other EU citizens, Letta's agenda translates into potential shifts in economic policy and national priorities:
Energy security and costs: Greater market integration could affect energy pricing and European infrastructure decisions that may influence local and national preferences.
Investment and savings: A more integrated capital market framework could have implications for how Italians invest and save, potentially requiring harmonized rules across member states.
Jobs and industry: The push for stronger European industrial capacity in strategic sectors could generate manufacturing opportunities in Italy, though smaller firms may face greater competition from EU-level industrial consolidation.
National decision-making: Letta acknowledges that his vision requires member states to accept greater collective European coordination in exchange for more unified power on the global stage.
The Political Challenge Ahead
Letta's call arrives at a politically complex moment. The Italian government, like several others in the EU, has expressed caution about deeper integration, citing fiscal constraints and voter concerns. Adding new European commitments will require careful negotiation among member states with different economic priorities.
Moreover, the EU's institutional framework remains a constraint. Brussels cannot directly raise revenue independent of member-state contributions, though the COVID-19 experience with the Next Generation EU recovery fund demonstrated that rapid European action is possible when political consensus exists.
The Trento festival provided a high-profile platform for Letta's message. Translating his "Declaration of Independence" into concrete policy will require sustained buy-in from capitals across the EU.
Looking Forward
Letta's vision of a more integrated, independent Europe reflects the ongoing debate about the EU's role in an increasingly complex global environment. The confluence of energy security concerns, geopolitical competition, and the climate transition has renewed focus on European strategic autonomy.
Whether EU leaders will formally adopt Letta's "Declaration of Independence" remains to be seen. For Italians and other Europeans, his message underscores a fundamental question: Europe can either choose its dependencies strategically, or have them imposed by circumstances beyond its control.
