BRUSSELS, Belgium, Feb 12 (V7N)- European Union leaders will meet at a historic Belgian castle on Thursday as the 27-nation bloc seeks ways to strengthen its economic standing amid mounting pressure from China and the United States, and persistent internal divisions.

The high-level talks at the 16th-century Alden Biesen castle come at a time of heightened geopolitical turbulence and intensified global competition, with concerns that Europe’s economy is falling behind major powers.

“The urgency could not be greater. We are fighting for a place in the new global economy,” European Commission President Ursula von der Leyen told industry leaders on Wednesday.

French President Emmanuel Macron echoed the call for action, urging the bloc to move at “a new scale and new speed” to prevent what he described as the “fragmentation, weakening and probably the humiliation of Europe.”

Macron also renewed his push for joint EU debt issuance — a controversial proposal among member states — arguing it is the “only way” for Europe to compete effectively with China and the United States.

Divisions Over ‘Buy European’ Proposal

Von der Leyen is expected to promote several initiatives during the discussions, including a French-backed “Buy European” policy, regulatory simplification, and efforts to diversify trade partnerships.

However, the “European preference” proposal is likely to spark debate. Countries such as Sweden and the Netherlands, strong advocates of free trade, have warned against drifting toward protectionism.

German Chancellor Friedrich Merz said such measures should be considered only as a “last resort.”

The Commission is also advocating for the creation of a so-called “28th regime” — a new legal framework enabling companies to operate across the bloc without being limited by national systems.

Push for Deeper Integration

Many EU officials argue that deeper integration of the single market is the long-term solution, as outlined in a landmark report by former European Central Bank chief Mario Draghi.

“A 28th regime is a neat idea, but true single market integration is needed, and there are no shortcuts in getting there,” said Varg Folkman, a policy analyst at the European Policy Centre (EPC).

Leaders will also hear from former Italian prime minister Enrico Letta, who has advocated for a savings and investments union to improve European companies’ access to capital — an area where they lag behind American competitors.

Despite being home to some of the world’s largest economies, including Germany and France, European firms often face hurdles in scaling up due to fragmented capital markets.

Energy and Strategic Industries in Focus

Diplomats indicated that energy prices and the “Buy European” drive will dominate Thursday’s strategic brainstorming session, which is not expected to produce immediate policy decisions.

Von der Leyen confirmed that the Commission would soon propose legislation introducing EU content requirements for strategic sectors.

“We will introduce specific EU content requirements for strategic sectors,” she said. “Let us direct more European money to our European industries.”

Analysts, however, cautioned against excessive protectionism.

“The bloc must push back against the US and China, but it must not do so at the cost of alienating global partners,” Folkman warned.

END/WD/RH