Taoiseach Micheál Martin will join other leaders at an informal EU summit outside Brussels which will be dominated by the challenges facing European competitiveness within an increasingly harsh geopolitical climate.
Leaders will focus on how to remove obstacles to the single market in order to boost innovation, and how to scale up European companies so they can compete in the global market.
However, sharp differences remain on whether the EU should protect its strategic industries or borrow more to boost investment.
It is estimated that internal barriers to the single market are equivalent to tariffs worth 44% when it comes to trade, and up to 110% when it comes to services.
Despite world beating pharmaceutical and manufacturing sectors, the EU lags behind China and the US when it comes to innovation and scaling up new companies.
Much of the effort to improve the EU’s competitiveness and to remove barriers to the single market has been driven by landmark reports by two former Italian prime ministers, Mario Draghi and Enrico Letta, both of whom will join the summit.
Diplomats say resistance to economic reform is often down to national politics and powerful lobbies.
Differences of opinion are significant: France wants joint debt to boost investment, and to foster a preference for using European companies and resources if public money is involved.
Germany and Italy warn that will only lead to protectionism and will blunt Europe’s ability to forge world class exports.
