That's what all the serious European economists are pushing for especially Draghi and his report but the EPP and the countries which massively benefit from the status quo, starting with Germany and the Netherlands, are blocking any move in the direction of propping up the internal market.
Merz is actually doing a masterclass in beggar thy neighbors policies right now by breaking the debt brake mostly to pay for subsidies in Germany rather than investments. It's pretty surreal to see them somehow stuck to sell side policies when they have no one to actually sell to and refuse the mean to create an actual market in Europe.
You don't really need rivals outside when your core members act this way.
each other. Intracontinental trade has always been a large part of Europe's wealth.