The European Union’s 27 leaders reached agreement on advancing a “Buy European” policy to protect strategic industrial sectors during their summit at a moated Belgian castle. The meeting addressed pressing concerns about Europe’s economic competitiveness relative to major global powers in an era of heightened volatility.
The summit revealed painful vulnerabilities exposed by Russia’s 2022 gas supply disruption, American trade conflicts, and China’s pursuit of economic dominance through massive state subsidies. These challenges have transformed European preference from a taboo policy position into a necessary strategic tool for survival in the global economy.
Von der Leyen emphasized that the pressure and sense of urgency could “move mountains” when questioned about EU leaders’ capacity to deliver complex plans threatening vested interests. Her March action plan will address regulatory simplification, startup support through EU Inc company law, capital market integration, and energy cost reduction across the continent.
The Franco-German relationship showed signs of renewed cooperation with Macron and Merz arriving together, though significant policy differences remain. While both leaders share urgency about European action, they diverge on the scope of European preference policies and trade agreements, particularly regarding the Mercosur deal with South American countries.
An emerging German-Italian partnership hosted a pre-summit gathering of 19 member states to discuss industrial relaunch initiatives, including review of the emissions trading system. This flourishing relationship has raised questions about the traditional Franco-German partnership that has historically driven the European project forward.