A very gloomy day for a green getaway. The EU27 trickled in under a light rain and grey skies on Thursday 12 February at Alden Biesen Castle in Flemish Limburg for an informal exchange session, away from the hustle and bustle of the European quarter.
This castle-monastery of the Teutonic Order saw cars, escorts and vans with tinted windows arrive for a brainstorming session aimed at revitalising the European economy (see EUROPE 13807/1).
There was unanimous agreement among European leaders that Europe must wake up if it does not want to be buried under the weight of the Chinese and US giants.
But the paths to get there are distinct, and national sensitivities are marked. Should we introduce a ‘European preference’ to keep certain value chains in Europe? Or more trade opportunities? Suspected of adopting an approach deemed “protectionist”, the French President, Emmanuel Macron, attempted to defend this initial vision. On the contrary, the new Italian-German ‘shock duo’ opted for the second.
Bringing “disruptive ideas” to the fore. At a cautious distance from the castle, an ephemeral tent housed the international press, detached but attentive to the slightest upheaval, watching for the incisive statements of the leaders on large screens set up against the waterproof fabric walls.
Leaning against one of the large tables set up for the occasion, a European diplomat said in passing that the aim of the meeting was to generate innovative ideas. “The instructions were clear. Leaders should not be afraid to come up with disruptive ideas”, he says.
Ideas such as these are aimed in particular at ‘torpedoing’ the administrative burden and excessive regulation that the EU can be famous for.
After the salvo of ‘omnibus’ proposals aimed at simplifying the European regulatory framework, the introduction of an “emergency brake” is the latest decried proposal from the Merz-Meloni duo, supported by Belgium. This brake on the legislative process could be activated by a Member State worried about a potential future regulatory overload.
We might as well be talking about a new form of veto... “which could require a revision of the Treaties”, commented several diplomats.
Digging out the ‘old’ files. In order to strengthen the sacrosanct competitiveness of the EU’s Single Market and respond to the shortcomings highlighted by the appointed ‘popes’, Mario Draghi and Enrico Letta, authors of two - “almost biblical” - reports on the issue, a number of projects were regularly presented.
Faced with the hegemony of the dollar, there was particular discussion of deepening the Savings and Investment Union to invest in European start-ups, and concluding work on the digital euro to strengthen the international role of the single currency - two projects that seem to reconcile the Franco-German axis.
Another sensitive issue put forward by France is ‘Eurobonds’ as a common debt capacity for strategic investments in the future - which this time did not meet with Berlin’s approval.
In addition, high energy prices and the phasing out of free allowances, the “rights to pollute” within the EU ETS, continued to cause controversy (see EUROPE 13807/2).
The beginnings of a multi-speed Europe. The challenge will be to move forward with a single voice, whether in terms of simplification, European preference, diversification or trade protection instruments. Even if it means giving priority to ‘enhanced cooperation’ between groups of at least nine Member States on certain issues, other than judicial matters.
This is the path that seems to be emerging for the Savings and Investments Union, as a Commission spokesperson has stated: “Our clear preference is to do it with 27 members, if possible, but the urgency ahead in terms of competitiveness and simplification (...) and economic opportunities cannot wait”.
The signs of this ‘multi-speed Europe’ are already apparent: twenty-four States will finance the loan to Ukraine for 2026 and 2027, without Hungary, the Czech Republic or Slovakia.
Concerned about its national priorities, Ireland, and potentially Luxembourg and Belgium, will have difficulty resigning themselves to the desire of other EU countries to set up European supervision of certain systemic financial players.
On Thursday, the President of the European Commission, Ursula von der Leyen, did not rule out enhanced cooperation between Member States to put in place a 28th regime designed to facilitate the cross-border expansion of businesses within the internal market.
A new meeting has been set for March, at a new European summit, this time in Brussels, to try once again to synchronise tempos or, on the contrary, to move forward in small, reinforced “platoons”.
Pauline Denys