Alden Biesen, Belgium – European Union leaders concluded a summit with a broad agreement on the need for a significant economic overhaul, driven by mounting geopolitical pressures from the United States, China, and Russia. The meeting, held at Alden Biesen Castle in Belgium, signaled a growing sense of urgency within the bloc to bolster its competitiveness and secure its economic future.
The discussions were notably shaped by interventions from former European Central Bank President Mario Draghi and former Italian Prime Minister Enrico Letta, whose proposals were met with detailed scrutiny from assembled leaders. Draghi highlighted a “deterioration of the economic context” and stressed the need to address a range of outstanding issues previously outlined in his recent report. His recommendations included reducing barriers within the EU’s single market, mobilizing European savings, integrating capital markets, addressing energy costs, and considering enhanced cooperation mechanisms where necessary.
A key point of contention revolved around financial instruments. Draghi advocated for common financial tools, receiving support from France and Spain. However, German Chancellor Friedrich Merz firmly opposed the idea of financing such initiatives through Eurobonds, citing constitutional constraints. He indicated a willingness to revisit the issue during upcoming discussions on the EU’s next budget.
European Council President António Costa conveyed a “shared sense of urgency” among the 27 leaders and a “unanimous consensus” on the need to streamline regulations and achieve concrete results by . Letta echoed this sentiment, proposing the completion of the single market as a strategic response to global pressures. He argued that the single market represents Europe’s best answer to challenges posed by the US and is fundamental to the continent’s sovereignty.
Letta reportedly urged leaders to move beyond 27 national markets and create a truly integrated economic space. He warned that without deeper integration of financial markets, Europe would struggle to remain competitive. He proposed a ‘One Market Act’ focusing on energy, connectivity, and financial markets, coupled with common horizontal tools, aiming for tangible outcomes between and , and channeling European savings into investment and growth.
The Commission, led by Ursula von der Leyen, indicated as a target for progress on capital market integration. Von der Leyen expressed a preference for a unified approach involving all 27 member states but acknowledged the possibility of “enhanced cooperation” if consensus proves elusive. The Commission is expected to present a ‘roadmap’ for the ‘One Market Act’ as early as .
Italian Prime Minister Giorgia Meloni emphasized the need for swift decision-making, stating, “The challenge is to understand whether the European Union can provide concrete, effective, and immediate responses to the issues of competitiveness, because there is no more time to lose.” She expressed hope that the EU would “start thinking big” once again.
The summit, while not resulting in concrete decisions, served as a catalyst for operational choices. Leaders acknowledged that economic competitiveness is now intrinsically linked to European security, given the confluence of high energy costs, global competition, and geopolitical tensions. The message from Alden Biesen Castle was clear: Europe recognizes both external pressures and internal weaknesses, and is preparing to respond.
Notably, Mario Draghi continues to command significant respect among heads of state and government. Diplomatic sources suggest ongoing discussions regarding a potential high-profile European role for Draghi, potentially as a special envoy for Ukraine.
The discussions also highlighted the growing concern over “Chinese dumping” – unfairly subsidized goods flooding European markets – as a contributing factor to factory closures and declining investment, particularly in Belgium, France, Germany, and the Netherlands. Belgian Prime Minister Bart De Wever described the situation as an “existential crisis” for these nations, emphasizing the need for a course correction.
Von der Leyen, speaking after the meeting, underscored the “enormous pressure and sense of urgency,” suggesting that these factors could “move mountains.” The EU’s commitment to a “Buy European” policy, aimed at protecting strategic sectors including defense, artificial intelligence, and clean technology, signals a more assertive approach to safeguarding European industry.
