The European Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, Michael McGrath, asserted this Thursday at the Forum Europa in Brussels that "strong democracies do more than protect rights" because "they foster resilient economies" and that "transparent and accountable institutions give businesses the confidence to invest and citizens the certainty to participate".
McGrath made these remarks while participating in an information session organised by the New Economy Forum in the EU capital.
The EU official argued that "in an era where the manipulation of information is increasingly used as a geopolitical weapon, and where information ecosystems isolate citizens in watertight compartments", supporting democracy means "defending the stability of our free, open, and pluralistic societies".
He stressed that, without systems of rights, "we know that markets falter and trust crumbles", and explained that "this is why the European Shield for Democracy, adopted in November, is not only about protecting our democratic systems, but also about boosting our European economies".
TRUST AND COMPETITIVENESS
The Commissioner emphasized that "competitiveness is not just a question of speed or scale", but "it is also a question of trust: the trust to invest, innovate, and grow", adding that "this is where Europe has a clear advantage".
McGrath explained that "for decades, the EU has demonstrated that it is the rule of law that provides stability" and that "it is democracy that generates trust, and it is open economies that drive innovation, competitiveness, and growth".
The EU official argued that these "are not abstract values" but rather "economic assets" that "shape the investment decisions made every day" and "reduce uncertainty and create the necessary conditions for businesses to grow, plan, and expand across borders".
He insisted that "Europe's competitive advantage is not built on shortcuts, but on predictability; not on lowering standards, but on establishing clear and reliable rules", adding that "this is what allows businesses to remain in Europe".
RULE OF LAW
The commissioner stressed that "the real question is not whether trust matters, but how we safeguard it in a time of geopolitical volatility, economic uncertainty, and digital disruption", explaining that "the answer for me begins with the foundation of our union, which is the rule of law".
McGrath argued that the rule of law "is also something more: a strategic asset and perhaps the most undervalued source of European competitiveness", explaining that "for businesses, the rule of law means something very concrete: stable market conditions, clear rules, and predictable enforcement".
The EU official added that "when businesses can count on stable rules and independent institutions, they can trust the market and invest, innovate, and grow", emphasizing that "this is why they choose Europe".
He also warned that "when the rule of law weakens, when rules become arbitrary, enforcement becomes unpredictable", and "courts become less than fully independent", then "our legal certainty gives way to political interference", and "we know there is an economic cost, and we know it is immediate".
EUROPEAN GLOBAL SCALE
The Commissioner argued that Europe needs to "enable companies in Europe to achieve a global scale, and sometimes that means allowing significant mergers to happen", although he acknowledged that "we must always take into account competitive dynamics" and "consumer interests".
He pointed out that "if we look at various different sectors, particularly in technology, we simply don't have enough companies that are on a genuinely global scale", and warned that this will influence "the decision about where they will base their business in the future".
The EU official concluded by stating that "at this moment, the choice is ours: to stand still and fall behind, or to act decisively, take control, and shape the future on our own terms", adding that he is confident that "Europe will lead, and will lead with determination and confidence".
