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For the European Union to compete globally while continuing to ensure progress in environmental, social and fundamental rights, more strategic and collective action is imperative. In a world where some leading global businesses have a market capitalisation of more than 鈧�3 trillion, an integrated economic, financial and fiscal policy framework is needed to encourage innovation and growth, including for successful SMEs. As the recent Letta and Draghi reports highlight, this requires clear political priorities, enough budgetary means, lower public spending waste rates at Member State level and crucially a transnational pro-innovation perspective. As a result, EU businesses could harness the full potential of the single market and economic and monetary union and challenge competitors in fast-growing and future-oriented economic activities such as digital and clean energy production. This agenda, although largely elusive at this point, could bring substantial economic benefit. This study finds that, compared to a situation where Member States act alone, a coordinated approach at EU level could bring an additional 0.9 % of GDP in 2035. A more ambitious integrated approach could be even more positive, with a benefit estimated at 2.6 % of additional GDP in 2035.