EU leaders’ retreat at Alden Biesen: shaping the uncertain future amid lingering divisions

In the serene setting of Belgium’s Alden Biesen castle, EU leaders gathered on Thursday for an informal “retreat” summit convened by European Council President António Costa. Billed as a “strategic brainstorming session,” the meeting produced no binding decisions – a hallmark of such non-formal gatherings – but laid crucial groundwork for addressing Europe’s slipping competitiveness in a volatile global landscape.

As external pressures mount, from U.S. President Donald Trump’s unpredictable policies to China’s subsidized exports and Russia’s ongoing aggression, the retreat highlighted a shared urgency for reform while exposing persistent fractures among member states, particularly on protectionism and the pace of integration.

The summit’s core focus was revitalizing the EU’s economy to foster growth, innovation, quality jobs, and affordability. Leaders, including French President Emmanuel Macron, German Chancellor Friedrich Merz, and Italian Prime Minister Giorgia Meloni, engaged in candid discussions inspired by reports from experts like Mario Draghi and Enrico Letta. Costa emphasized the need for a “more competitive and resilient economy,” noting that the talks “brought new energy and a shared sense of urgency.”

European Commission President Ursula von der Leyen echoed this, stating in her post-summit remarks: “We had an excellent discussion with the leaders today on the broader topic of competitiveness.”

The absence of formal outcomes belies potential long-term impacts: the retreat paves the way for concrete actions at the March European Council, including a proposed “One Europe, One Market Roadmap and Action Plan” with timelines and targets to streamline the single market by 2027.

Key agreements emerged on several fronts. Leaders unanimously backed an ambitious simplification agenda to cut red tape, potentially saving €15 billion annually through omnibus packages and “deep cleaning” of outdated laws. There was consensus on advancing a “28th regime” for EU-wide corporate rules, enabling startups to register fully online in 48 hours, and on fostering “European champions” through revised merger guidelines that reflect global realities rather than just the EU market.

Von der Leyen highlighted: “We need European champions. That is why we are revising the merger guidelines. A draft will be presented in April… Our objective is clear: merger guidelines that reflect the realities of the global market, not just the European one, and that enable the emergence of true European champions.”

Energy prices, a pain point for industries, drew broad support for pragmatic short-term solutions while pursuing the green transition for long-term autonomy. Trade diversification and mobilizing private savings via a Savings and Investment Union also gained traction, with Costa noting “unanimity that Europe is open for trade.”

Yet, beneath this veneer of harmony, divisions persisted, particularly between major players like France and Germany. Macron, a proponent of strategic autonomy, pushed for a “buy European” preference to shield domestic industries from foreign competition, criticizing Europe’s “naivety” in the face of U.S. tariffs and Chinese subsidies.

Merz countered with a market-oriented stance, arguing against blanket protectionism: “The point is precisely that we should not try to protect ourselves from competition across the board.”

France ultimately conceded, agreeing to limit preferences to “certain critical sectors that are particularly threatened,” such as defence, space, cleantech, and AI – a move Macron called a “very good strategic retreat.”

This compromise reflects broader tensions: northern “frugal” states like Germany and the Netherlands favour deregulation and free trade, while southern and western nations like France and Italy seek more interventionist measures to counter dependencies.

The retreat also revived discussions on a “multi-speed Europe,” where smaller coalitions could advance reforms via “enhanced cooperation” if full consensus stalls. Von der Leyen noted: “Don’t get me wrong, I prefer it by 27, but these two enormously important building blocks… have to advance now and therefore there is as a fallback option potentially the enhanced cooperation.”

This shift, long resisted, signals a pragmatic response to gridlock, potentially allowing groups of at least nine states to forge ahead in areas like telecoms, energy, and capital markets.

Merz observed: “Two or three years ago we would probably not have had a discussion similar to the one we have had today.”

External factors loomed large, with Trump’s threats – such as seizing Greenland or wavering on Ukraine aid – adding urgency to Europe’s self-reliance.

Costa stressed mapping dependencies and pursuing diversification, while Macron urged: “We need to act fast.”

The summit’s consequences could be profound: successful March follow-ups might yield the Industrial Accelerator Act, aiming to boost manufacturing from 14% to 20% of GDP by 2035, and unlock investments amid an “investment gap.”

Failure, however, risks deeper fragmentation, with “left-behind” capitals hamstrung by discord and businesses strangled by high energy costs and bureaucracy.

Costa concluded optimistically: “In 2026, Europe will deliver. We did on defence last year, we will on competitiveness this year.”

With agencies and official statements.

Caption: Estonia’s Prime Minister Kristen Michal , German Federal Chancellor Friedrich Merz and Irish Prime Minister Michal Martin ahead to Family photo during EU leaders to an informal retreat at Alden Biesen Castle in Bilzen, Belgium, 12 February 2026. The strategic session focuses on deepening the Single Market, boosting investment, and enhancing Europe’s competitiveness in a shifting geoeconomic landscape. EPA/OLIVIER HOSLET