EU to meet in Belgian castle to tackle economic rivalry with US and China
By Reuters, February 11, 2026European Union leaders gather in a Belgian castle on Thursday, February 12, 2026, to thrash out how they can compete economically with a global rival like China and a less reliable ally like the U.S. as the rules-based world order frays.
EU growth has been persistently lower than that of the United States over the past two decades, with EU productivity and innovation, particularly in fields like AI, falling short.
The EU is now contending with Donald Trump’s trade war, opens new tab, and most recently, tariff threats over Greenland, as well as Chinese restrictions on exports of critical minerals that the 27-nation bloc urgently needs.
With the EU needing greater wealth to cover decarbonisation and digitalisation and strengthen its defence in the face of a belligerent Russia, the bloc is increasingly aware that now is the time for action.
European Council President Antonio Costa, who chairs EU summits, will host leaders for a brainstorming “retreat” at the 16th-century Alden Biesen castle in eastern Belgium to discuss what action to take.
Former Italian prime ministers Mario Draghi and Enrico Letta, authors of two influential reports in 2024 on the EU’s competitiveness challenge and its single market, are also invited to share their views.
But Reinhilde Veugelers, senior fellow at think tank Bruegel, was sceptical whether the brainstorming on Thursday would bring more than just a “nice declaration”.
The responses
The report of Draghi, who has headed the European Central Bank, has been taken up as a blueprint the EU should follow, with a series of European Commission proposals on financing, defence and reduced regulation since September 2025.
However, the European Policy Innovation Council think tank, whose Draghi Observatory monitors uptake of his 383 recommendations, said that up to January only 15 per cent had been implemented and a further 24 per cent partially implemented. Progress, it said, was more incremental than transformational.
Letta said the glass was “half-full” on deepening the single market, with some progress on critical initiatives like services and capital. He said the EU needed to complete an energy union, a digital union and an EU-wide capital market that could match U.S. investments in newer companies and infrastructure.
His key message to leaders would be to commit to a deadline of completing the EU single market by 2028.
“I think that is the only way to respond to Trump and to external pressures that the European Union is under from China, Russia and the U.S. in different ways,” he told Reuters.