The Florence Report, published by the EMU Lab, offers a bold new agenda for Europe, centering on growth, competitiveness, and a renewed European Social Contract to address the bloc's deepening economic stagnation [1]. In a changing world where external threats loom large and political rivalries harden, the report argues that a credible social contract is essential to restore confidence and drive sustainable development [1].
The report identifies the collision between fiscal pressure and rising demands for defense, industrial policy, and climate spending as a core threat, warning that this tension could lock governments into defensive postures and crowd out strategic choices [1][3]. As budgets tighten in a low-growth environment, the political space for transformative economic reforms narrows, making the Social Contract a critical tool for maintaining social cohesion and economic momentum [1].
Experts emphasize that the EU must navigate a complex global landscape, where the US-China rivalry and the emergence of illiberal alliances within the bloc threaten to undermine multilateralism and economic sovereignty [3][4]. The Florence Report's agenda aims to counter these threats by fostering a cohesive, competitive Europe that can stand firm in the face of geopolitical volatility.
With the European Investment Bank as a key enabler and the Brussels Economic Security Forum 2026 serving as a strategic moment for senior leaders to address these challenges, the report provides a roadmap for revitalizing Europe's economic and social foundations [3][8]. The success of this agenda will depend on the EU's ability to unite its member states behind a common vision of growth and resilience in an increasingly uncertain world.
