Kathimerini Greece Newsroom
By Alexandra Voudouri
Can Europe become more economically competitive and less reliant on the United States? That’s the central question facing European leaders gathering today at Alden Biesen Castle in Belgium’s Flemish region, at the invitation of European Council President Antonio Costa.
Nearly a year and a half after Mario Draghi’s landmark report on strengthening Europe’s competitiveness, most leaders agree on what needs to be done. Where they disagree is on how to do it and which priorities should come first, often reflecting their own national interests and economic pressures.
Two distinct camps are expected to emerge at the talks, attended by former Italian prime ministers Mario Draghi and Enrico Letta, who authored major policy reports on competitiveness and the single market. On one side is France, pushing to revive the idea of joint EU borrowing. On the other are Germany and Italy, which favor increased state aid and a reduction in regulations and bureaucracy.
French President Emmanuel Macron recently proposed issuing eurobonds to finance €1.2 trillion in annual investments in security and defense, clean energy, and artificial intelligence. He is also promoting a “Made in Europe” preference policy, an idea Berlin and Rome reject as protectionist.
German Chancellor Friedrich Merz, who opposes joint borrowing, argues that while investment is necessary, Europe’s core problem is productivity. Together with Italian Prime Minister Giorgia Meloni, he is advocating deregulation, expanded venture capital funding, and stronger exit options for investors. Merz has also convened a smaller meeting of like-minded leaders, including Greece’s prime minister, ahead of the main gathering to coordinate positions.
Commission’s balancing act
Caught between these competing visions, European Commission President Ursula von der Leyen signaled a middle path. She described “European preference” as a useful tool for competitiveness but warned there is a “fine line,” stressing there is no one-size-fits-all solution.
The Commission favors strategic support for European production but not broad protectionism, especially if it undermines trade agreements with partner countries. On complaints from Berlin and Rome about excessive EU rules, von der Leyen pushed back, saying obstacles to the single market often stem from national laws rather than Brussels.
She nonetheless appears determined to move forward with measures she considers necessary to revive Europe’s economy, even if only a group of willing member states participates. While the goal remains progress by all 27 countries together, EU treaties allow for “enhanced cooperation,” enabling smaller coalitions to advance faster if unanimity proves impossible.
“We must move forward and remove the barriers holding us back from becoming a true global giant,” she said, echoing language increasingly promoted in Berlin.
Leaders are expected to use the informal summit to hold frank discussions and outline concrete steps to strengthen the single market, cut energy costs and red tape, and reduce Europe’s dependence on economic rivals such as China and the United States.
Speaking to the Financial Times, Costa said the time has come for European leaders to stop talking and start implementing solutions. The choice of a secluded Flemish castle for the meeting, he added, was deliberate, meant to encourage open dialogue about Europe’s economic future.
