Removal of regulations deemed unnecessary, completion of the single market, protection of strategic sectors... The leaders of the 27 announced measures on Thursday to strengthen the competitiveness of the European Union against China and the United States. German Chancellor Friedrich Merz, however, closed the door to joint loans proposed by Emmanuel Macron.

Published on: 02/12/2026 - 04:25 Modified on: 02/13/2026 - 09:48

A plan to make Europe faster and more efficient: the leaders of the 27 EU member states committed on Thursday February 12 to implementing reforms to restore the competitiveness of their economies and better resist pressure from China and the United States.

“We share the same feeling of urgency. We have to go there immediately and accelerate, because we are jostled by international competition,” declared French President Emmanuel Macron after discussions with his European peers.

But, a sign that differences persist on the means to achieve this, German Chancellor Friedrich Merz closed the door to common loans (or "eurobonds") proposed by Emmanuel Macron, stressing that this solution should be strictly reserved for "exceptional situations". The President of the Council of the EU, Antonio Costa, promised "concrete measures" in March, during the next European summit.

Unity displayed from Paris and Berlin

EU leaders met at Alden Biesen Castle in northeastern Belgium to discuss how to speed up a raft of pro-economy reforms: removing unnecessary regulations, completing the single market and protecting strategic sectors.

While France and Germany had exposed their differences in recent days on priorities (protecting industry via "made in Europe" for Paris, deregulating at all costs for Berlin), their leaders wanted to display their unity by arriving together at this summit. “We want a faster Europe and we want to improve it,” said the German Chancellor.

Although it has many assets, the European economy suffers from modest growth (1.5% in 2025) and a lack of champions in areas of the future such as artificial intelligence, fueling fears of losing ground in the face of Beijing and Washington. And trade has become a minefield, where the EU increasingly finds itself on the defensive.

Draghi reforms get bogged down

It was already under pressure from China, which controls the rare earths essential to global industry, floods the Old Continent with its small packages and swells its trade surpluses without apparent limit. But the attacks now also come from the United States, which since Donald Trump's return to power has threatened to annex Greenland, drawn the weapon of customs duties and fired bullets against Brussels' digital and environmental rules.

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Former European Central Bank President Mario Draghi, who debated with European leaders at Alden Biesen on Thursday, served as inspiration for an ambitious reform package in the EU in 2024. The exercise consists of consolidating the single market, putting savings at the service of businesses and reducing the accumulation of European and national regulations. But this shock treatment launched 18 months ago by the European Commission has partly become bogged down in EU legislative procedures.

The summit was also marked by “intense discussions” on energy prices, admitted Ursula von der Leyen. Several countries, including Italy, are calling for an overhaul of the European carbon market, accused of penalizing manufacturers, and demanding the abandonment of the gradual abolition of free CO2 emissions quotas. But “it would be a strategic error to say that competitiveness requires abandoning the climate,” warned Emmanuel Macron.

Creating European champions

On "European preference", another bone of contention, the French president specified that the list of sectors concerned would be defined in March, while Brussels must unveil a proposed law on this subject at the end of the month. But, in an apparent concession to Germany, which wanted to preserve Europe's partners, Brussels is now proposing that products from states with rules similar to Europe be assimilated to those "made in the EU", according to a version of the project consulted by AFP.

The idea of ​​a new legal regime for companies, called EU Inc, which would reduce their administrative formalities, has on the other hand garnered a fairly broad consensus, as has a relaxation of the rules on mergers to allow the birth of European champions in areas such as telecoms.

Finally, several leaders opened the door to “enhanced cooperation” to apply certain measures, which would amount to only applying them in countries that are voluntary, if it proves too complicated to agree at 27.

With AFP

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