EU leaders met informally at Alden Biesen Castle in eastern Belgium on Thursday, in place of the regular monthly summit in Brussels, to discuss how to revive and streamline Europe’s economy and how to respond to strategic challenges posed by China, Russia and the United States.
French President Emmanuel Macron and German Chancellor Friedrich Merz presented a united front on arrival, seeking to quell media speculation about a rift between the bloc’s two biggest economies. Both stressed a shared urgency to make the EU more competitive and to speed up decision-making. Merz emphasized cutting bureaucratic hurdles and improving industry competitiveness, while Macron said Europe must take clear, decisive action.
Despite their common language on the need for reform, Paris and Berlin favor different remedies. Merz has argued for cutting red tape, easing reporting requirements for businesses, removing internal trade barriers and pursuing more international free-trade agreements. Macron has pushed for greater fiscal integration, including issuing pooled European debt to fund investment — a step Germany remains reluctant to embrace. Merz reiterated that joint borrowing has so far been limited to exceptional circumstances.
The two countries also differed publicly over a recent EU trade agreement with four Latin American nations, which France opposed after protests by farmers. Merz criticized the European Parliament’s last-minute decision to delay implementing the accord.
Both leaders signaled growing alignment on financial-market reform. The European Commission’s recent proposal for a savings and investment union, intended to harmonize national rules and boost cross-border investment, was identified as a key part of that effort.
Host Belgian Prime Minister Bart De Wever pushed the group to prioritize affordable energy for industry, pointing out that European industrial power prices remain much higher than in the United States and China, putting sectors such as petrochemicals, steel and metals at risk.
Several leaders voiced frustration at the slow pace of change. Swedish Prime Minister Ulf Kristersson said there was too much talk and too little action, while Czech Prime Minister Andrej Babis described the scene as “only words, conferences, no action.” European Commission President Ursula von der Leyen struck a more hopeful note, saying the enormous pressure and urgency could drive significant progress.
Representatives from industry urged leaders to move from diagnosis to delivery, calling for immediate steps to protect European industry. Macron suggested a June deadline for concrete decisions, proposing that the EU either secure consensus among all 27 member states or, where necessary, proceed with enhanced cooperation among a smaller group to accelerate reforms.