Alden Biesen, Belgium – An informal European Union summit on competitiveness, held at Alden Biesen Castle in Belgium, was overshadowed by emerging fissures in economic leadership within the bloc. A pre-summit meeting organized by Germany, Italy, and Belgium, with its own agenda for boosting EU competitiveness, detracted from the intended message of unity, and reportedly sparked conflict with Spain.
The tensions surfaced as leaders gathered to discuss strategies for revitalizing the EU economy, a topic of increasing urgency given shifting global economic dynamics. According to sources, the pre-summit meeting, attended by representatives from 19 countries, became a point of contention, particularly with Spain, which was not invited.
Spanish government sources confirmed their lack of invitation and conveyed to Italy that the pre-summit gathering undermined fundamental EU principles, hindering rather than fostering solutions. Italy responded that while bilateral cooperation with Germany was strengthening, it was not intended as an exclusionary move. Belgian Prime Minister Bart De Wever attempted to downplay the situation, stating that all countries were invited, and those who chose not to attend did so of their own accord, adding that Spain was not explicitly excluded.
The discord comes as Germany and Italy increasingly position themselves as a leading force in shaping the EU’s economic future, advocating for deregulation and simplification of regulations impacting businesses. This alignment contrasts with France’s vision, setting the stage for potential clashes during the formal summit in March. French President Emmanuel Macron recently made remarks to European media outlining his agenda, signaling a proactive effort to assert Paris’s position in response to the German-Italian proposals.
The situation was further complicated by the presence of Mario Draghi, former President of the European Central Bank and former Italian Prime Minister, and Enrico Letta, author of a 2024 report on the future of the Single Market. Both figures engaged with leaders, emphasizing the need for continued reforms to enhance EU competitiveness against the United States and China.
Letta reportedly stressed the importance of completing the Single Market and pursuing deeper integration, particularly in energy and financial markets, as crucial steps towards achieving greater competitiveness. Draghi echoed these sentiments, highlighting the need to reduce investment barriers, streamline regulations, and lower energy costs, reiterating many of the recommendations from his 2024 report – of which only 11% have been implemented to date.
European Commission President Ursula von der Leyen, in a letter to EU heads of state prior to the summit, urged leaders to support the Commission’s efforts to simplify European legislation and deepen the Single Market. She emphasized that a competitive economy is “a prerequisite for our freedom to choose our own destiny.” Von der Leyen also called for the conclusion of new trade agreements globally, despite ongoing controversies surrounding the EU-Mercosur deal, which has faced significant protests.
Despite the internal disagreements, Antonio Costa, President of the European Council, attempted to project a sense of progress, stating that the summit had “paved the way for agreeing on concrete actions” at the formal Council meeting in March. These actions include an “ambitious agenda of regulatory simplification” and a move towards a fully integrated Single Market, as well as continued investment in the energy transition.
Costa concluded by expressing confidence that Europe would deliver on its commitments in 2026, mirroring its response to defense challenges in the previous year. However, the underlying tensions suggest that achieving consensus on a unified economic strategy will remain a significant challenge.
The summit also highlighted the potential for utilizing enhanced cooperation mechanisms, allowing a group of nine or more countries to move forward with measures even without unanimous agreement, with the possibility of other nations joining later. This approach, however, risks creating a two-tiered system within the EU and further exacerbating existing divisions.
The informal meeting also served as a platform for Macron and German Chancellor Friedrich Merz to publicly demonstrate unity, walking side-by-side and issuing statements emphasizing a shared commitment to addressing the challenges of competitiveness. Meloni similarly emphasized that strengthening cooperation with Germany was not intended to exclude other member states.
The events at Alden Biesen underscore the complex dynamics at play within the EU as it seeks to navigate a rapidly changing global landscape. The competing visions for economic revitalization, coupled with the emergence of new alliances, suggest that the path towards a more competitive and resilient Europe will be fraught with challenges.
