European Union leaders gathered Thursday at the 16th-century Alden Biesen castle in eastern Belgium for a retreat aimed at tackling the bloc’s economic challenges and finding ways to compete more effectively with the United States and China.
The discussions come as Europe faces pressure from Donald Trump’s trade war and Chinese restrictions on critical mineral exports, while also needing resources to decarbonise, digitise, and strengthen defences against Russia. EU growth has consistently lagged behind the US and China, and innovation in areas such as artificial intelligence has fallen short.
Former Italian prime ministers Mario Draghi and Enrico Letta joined the retreat to share insights from their 2024 reports on competitiveness and the single market. The Draghi report has been widely seen as a blueprint, though only 15% of its recommendations have been fully implemented. Letta urged leaders to commit to completing the single market by 2028, calling it the only way to respond to external pressures.
European Commission President Ursula von der Leyen said she wanted leaders to agree on a clear timetable at their next summit in March. Industry leaders also pressed for urgent action, with 900 companies signing a declaration in Antwerp that warned of dire circumstances but insisted Europe could still change course.
Analysts argue that Europe retains strong assets, including skilled talent, innovative start-ups, and quality of life, but needs deeper capital market integration and more focused funding in areas of excellence.
