In late January 2026, Germany — together with France and four other major EU economies — launched a high‑profile initiative to create a “two‑speed” European Union model aimed at breaking policy stagnation and enhancing Europe’s global economic and strategic competitiveness. The proposal contemplates a core group of six leading economies within the 27‑member bloc that would cooperate more quickly and decisively on shared priorities, especially where consensus among all member states has traditionally slowed progress.
The initiative has quickly gained attention across Europe, sparking discussions about how the EU should evolve to confront mounting geopolitical uncertainty, economic headwinds, and intensifying global competition. At its heart lies a tension between deeper EU unity and coordinated leadership among willing partners.
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The Core Six: Who’s Leading the Charge
Initiated by German Finance Minister Lars Klingbeil alongside his French counterpart, the “two‑speed” idea seeks cooperation among the six largest EU economies: Germany, France, Italy, Spain, Poland, and the Netherlands. These nations represent a major portion of EU economic output and political influence, and their cooperation could catalyze action where broader EU consensus has been elusive.
According to a letter from Klingbeil seen by Reuters, the core group has been invited to an initial videoconference to set a concrete agenda. The meeting is meant as a “kick‑off,” with follow‑up in‑person discussions planned around future Eurogroup summits.
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Why “Two Speeds” — and Why Now?
Breaking Decision‑Making Gridlock
The European Union traditionally operates on a consensus‑driven model, which requires broad agreement among all 27 member states on major policies. While this system ensures inclusivity, critics argue it often leads to slow and watered‑down outcomes — especially in areas demanding swift responses, such as defense strategy, supply chain security, or digital and economic reform.
German officials, citing a rapidly changing geopolitical context and competitive pressures from global powers like the United States and China, have emphasized that Europe can no longer afford inaction or paralysis on key strategic issues. “Now is the time for a Europe of two speeds,” Klingbeil said as he announced the initiative.
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The Agenda: What the Core Group Would Focus On
The proposal is not merely symbolic — it comes with a practical policy agenda grounded in four major goals:
1. Strengthening the Euro and Capital Markets Union
The initiative would promote integration of European capital markets and enhance financing conditions for businesses, especially startups and fast‑growing companies. Reducing red tape and boosting the euro’s international role are also central.
2. Defense and Strategic Autonomy
Europe’s ability to coordinate defense spending and capabilities is a growing priority amid lingering war in Ukraine and uncertainties about U.S. strategic commitments. The core group aims to elevate defense cooperation as a key growth engine and strategic necessity.
3. Supply Chain and Raw Materials Security
The bloc’s heavy reliance on imported critical materials — particularly from global competitors — has exposed vulnerabilities. Enhancing supply chain resilience through joint procurement and strategic partnerships is a stated aim.
4. Savings and Investment Union
Creating stronger conditions for European investment, through harmonized savings frameworks and financial incentives, would help channel capital to priority sectors.
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Support and Criticism: A Battle of Perspectives
Supporters’ View
Proponents argue that the two‑speed model could be transformational, enabling Europe’s leading economies to act with agility where full EU consensus would otherwise stall progress. Given geopolitical instability, sluggish growth, and trade frictions globally, coalition leadership among major EU powers could fortify the bloc’s economic sovereignty.
Indeed, smaller group cooperation mechanisms — such as enhanced cooperation or Eurozone fiscal initiatives — already exist within the EU framework, suggesting that selective collaboration is not entirely novel.
Critics’ Concerns
However, the proposal is controversial. Critics — including some Eastern European leaders — warn that a “two‑speed” EU could undermine unity and equal representation, deepening divisions between larger and smaller member states. Lithuanian Prime Minister Inga Ruginienė cautioned that separate unions might erode the sense of collective identity and security that holds the bloc together.
Opposition voices also fear that a core group could evolve into an exclusive power center, making decisions that disproportionately reflect the priorities of the “big six” at the expense of broader EU interests. Such worries reflect longstanding debates over the balance between sovereignty, solidarity, and efficiency in European governance.
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Geopolitical Context: Beyond European Borders
Germany’s push follows external pressure as well — comments from U.S. officials about the EU’s slow decision‑making and broader shifts in global alliances have added urgency to calls for change. Some European leaders view two‑speed cooperation as a tool to ensure the EU is not left behind in a rapidly fracturing world order.
The effort also comes amid economic challenges across the bloc — from slow growth to debates about energy independence and industrial competitiveness — reinforcing arguments that Europe must adapt its governance architecture to meet contemporary challenges more effectively.
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Looking Ahead: A Turning Point for the EU?
As discussions of a two‑speed Europe unfold, the coming months will be critical in shaping how — and whether — this model is institutionalized. Steps following the initial video conference, including in‑person meetings and the development of actionable policy frameworks, will test both the political will and strategic cohesion of Europe’s leading states.
Whether this initiative ultimately leads to a permanent transformation of EU decision‑making, or remains a tactical response to current pressures, it highlights a broader truth: the European Union is at a crossroads, balancing its foundational values of unity and equality with the imperatives of strategic agility and economic resilience.
All updates as of January 29, 2026.