The EU faces even bigger challenges than in the Commission's and Parliament's previous term, heard a Bled Strategic Forum panel. Competitiveness, the technological dominance of the US and China, and inadequate defence spending were highlighted as some of the key concerns along with incomplete integration and political gridlock.

Guillaume Klossa, executive president of French think-tank EuropaNova, listed several challenges in the near term: the fact that crises are accelerating, the US and China are investing heavily in science and technology at a pace that Europe cannot match, inability to deliver on common goods such as climate policies and education, and the lack of a European policy and democracy.

He said that if Europe could not keep pace with the US and China when it came to science and technology, it would enter "a period of accelerated economic decline". The two countries have strategically invested in these two sectors and the EU needs to do the same, he argued.

Igor Mally, state secretary for European affairs at the office of the Slovenian prime minister, focused on the political dimension of the EU arguing that the current Parliament and Council will have problems getting major dossiers done, including the green transition, enlargement and migration.

It is going to be especially challenging in the next EU budget, a financial framework which reflects the priorities of the EU, he said. "The battle for the next EU budget will be very challenging and very important."

Mally noted that political leaders understand the challenges but there is a lack of willingness to see things through when it comes to money: in budget talks, cohesion and agriculture end up with the bulk of the funds.

He sees an EU-wide tax as one possible solution since it would give the Commission own budget resources. "It is a long shot, but still," he said.

Turning to defence, he said it was fortunate that because of the current geopolitical situation the vast majority of countries would be in favour of putting money in defence, including the frugal countries. "But I think the defence sector will sooner or later have to be financed with loans, not just from the EU budget."

He is also in favour of an extension of Next Generation EU, though he acknowledged that this would be difficult for some member states to accept.

Rastislav Chovanec, state secretary at the Slovak Foreign Ministry, emphasised competitiveness as the main priority as he noted that there is not a single sector where the EU is global leader.

"We act as a union, but when there is a crisis we are each our own country. We have to get back to the basics and realise what we should do to be more competitive and regain leadership," he said.

The focus should be on how to keep large companies in Europe, put more money in research and development, finish the single market, and conclude free trade agreements, which Europe had failed to do in the last several years. Additionally, he said all strategies should be assessed for how they would impact companies.