European Union leaders will meet tomorrow at the historic Alden Biesen castle in Belgium for an informal retreat summit. The goal is to revitalize the bloc’s economy amid growing competition from China and an unpredictable United States under President Donald Trump’s second term.
European Council President António Costa described the gathering as a “strategic brainstorming session.” Leaders are concerned that Europe’s slow growth and internal divisions could weaken its global position.
Single Market at the Center of Debate
The EU’s single market, long seen as its greatest economic achievement, is now criticized for persistent fragmentation. These divisions make cross-border trade and investment more difficult.
European Commission President Ursula von der Leyen urged national leaders to remove internal barriers and integrate economies more deeply. She said competitiveness is key to “our drive for independence” in a world shaped by power struggles and strategic rivalries.
Von der Leyen highlighted that differing national rules act like a 45 percent tariff on goods and a 110 percent tariff on services within the EU. She called this a major obstacle to prosperity, security, and democracy.
Global Pressures Heighten Urgency
Von der Leyen’s warning comes amid rising global pressures. Trump’s return to the White House could bring tariffs and trade disruptions, while China dominates sectors like green technology and manufacturing.
EU officials see the retreat as a crucial opportunity to create a “new European competitiveness deal.” Former Italian Prime Ministers Mario Draghi and Enrico Letta, known for their reports on EU competitiveness and the single market, have been invited to share insights and suggest actionable reforms.
Tackling the ‘Terrible Ten’ Barriers
A key agenda item is removing the so-called “Terrible Ten” barriers identified by the European Commission. These obstacles hinder a seamless single market and include:
- Complex procedures for establishing businesses across borders
- Confusing or contradictory EU rules
- Poor enforcement of single market regulations by member states
- Limited recognition of professional qualifications, slowing worker mobility
- Discriminatory authorization processes for services
- Restrictions on digital and data flows
- Unjustified limits on territorial supply
- Challenges in cross-border establishment
- Rules restricting services in other EU countries
- National practices that disadvantage foreign firms
Removing these barriers could unlock major growth. Estimates suggest that deeper integration in services alone could boost the EU economy by tackling what the IMF calls a 110 percent internal tariff.
Von der Leyen proposed a “joint roadmap on the single market” to be endorsed by member states and the European Parliament at the March EU summit. Measures could include cutting bureaucracy, creating a unified business law system, and allowing willing countries to cooperate faster. This hints at a possible “two-speed Europe.”
Preparatory Moves and Industry Pressure
The retreat follows preparatory steps, including von der Leyen’s address today at the European Industry Summit in Antwerp. She will report on progress toward industry demands in the Antwerp Declaration.
The event, organized by chemicals lobby CEFIC, faced criticism from civil society groups like Corporate Europe Observatory. They argue it gives undue corporate influence under the guise of promoting competitiveness.
Additionally, a coalition of NGOs, including Climate Action Network Europe, warned against rolling back environmental and social rules. They stressed that real competitiveness should not come at the cost of climate goals.
Divergent National Perspectives
National views on reforms vary. For example, Germany, Italy, and Belgium circulated a paper calling for completing the capital markets union, cutting red tape, and pursuing new trade deals by the end of 2026.
French President Emmanuel Macron and others support “European preference” rules to favor EU-made products in defense and industry. However, smaller states fear this could fragment the market.
Italian Prime Minister Giorgia Meloni and German Chancellor Friedrich Merz advocate simplification and a stronger intergovernmental role, while other allies favor a more community-driven approach.
A Critical Juncture for the EU
The Alden Biesen meeting is not expected to produce formal conclusions, but it will likely influence the March European Council agenda. Von der Leyen emphasized, “Our ambition should always be to reach agreement among all 27 Member States.” However, enhanced cooperation may be necessary to avoid deadlock.
With the EU’s ability to act independently on the world stage at stake, the retreat is a crucial moment for bridging divides and charting a path toward renewed economic strength.