The European Union must simplify its capital market and regulations in order to reduce fragmentation and boost the bloc's competitiveness, European Commission President Ursula von der Leyen said Wednesday.

"Our companies need capital right now. So let's get it done this year," she stressed. "We have to make progress one way or the other to tear down the barriers that prevent us from being a true global giant."

Von der Leyen described the current EU system as "fragmentation on steroids" and called for "one large, deep, and liquid capital market."

"Let me take the US example ​again: One financial system, one financial capital, ​and ‌a handful of other financial centers," she said, adding that the European Union has not only 27 different financial systems but also more than 300 trading venues.

What does the European Commission propose?

The EU has identified a key issue that could boost the bloc's competitiveness. Unlike their American counterparts, European companies have difficulty accessing the capital needed to scale up.

The European Commission has proposed streamlining national rules to create a savings and investment union. However, harmonizing financial rules in Europe has proven difficult in the past.

Von der Leyen urged lawmakers to make swift progress, emphasizing that she would move forward with the legislation even if not all EU countries were ready to alter their national rules. If they cannot reach an agreement, the EU should consider "enhanced cooperation" among the countries that want to participate, she said. 

Call to buy European

One of the most significant — and controversial — proposals to boost the EU's economy is to favor European firms over foreign rivals in "strategic" sectors, a plan von der Leyen said she supports.

"In strategic sectors, European preference is a necessary instrument that will strengthen Europe's production base," she said, cautioning against a "one-size-fits-all" approach.

In her speech, von der Leyen also said Europe should increase its competitiveness by "stepping up production" on the continent and "expanding our network of reliable partners."

She emphasized the importance of signing trade agreements. Following recent deals with the South American bloc Mercosur and India, the chief of the European Commission said more were on the horizon with Australia, Thailand, the Philippines, and the United Arab Emirates.

Von der Leyen delivered her messages before joining EU leaders, including France's Emmanuel Macron and Germany's Friedrich Merz, at an industry executive gathering in Antwerp. This event precedes Thursday's EU leaders' summit aimed at bolstering the bloc's economy.

Edited by: Sean Sinico