EU Leaders and Industrialists Convene in Belgium to Forge Strategy on European Competitiveness and Economic Sovereignty

On February 12, 2026, top European Union leaders gathered at Alden Biesen Castle in Belgium for an informal summit focused on bolstering European competitiveness amid growing economic challenges, particularly from China. The summit followed a high-profile meeting held on February 11 in Antwerp with about 600 industry leaders, including French President Emmanuel Macron and German Chancellor Friedrich Merz. The discussions revolved around revitalizing European industry, regulatory harmonization, and strategic economic independence.

European Commission President Ursula von der Leyen underscored the urgent need to address regulatory fragmentation among member states, which she highlighted in a letter estimating that trade barriers resulting from this fragmentation amount to a 45% additional cost on goods and 110% on services. Belgian Prime Minister Bart de Wever stressed the importance of industrial leaders outlining obstacles to their competitiveness to guide effective policy responses.

A central topic was the controversial "Made in Europe" clause proposal, which would require companies receiving public funding to source European components. This initiative, aiming to strengthen domestic supply chains and reduce dependence on external actors, faced resistance from Italy, Germany, and Nordic countries favoring deregulation and free trade approaches. Furthermore, a working document by several EU governments advocated for completing the single market and reducing bureaucratic hurdles to enhance competitiveness.

The backdrop to these talks is Europe's confrontation with a second economic shock from China. Unlike the early 2000s, when China primarily exported low-cost goods, it has now become a dominant global producer in high-technology sectors. Market sectors such as solar panels and automotive manufacturing have seen China emerge as a leader, with the country now producing 40% of the world’s vehicles and leading in electric vehicle battery technology. These shifts have significantly impacted European industries, prompting calls for a robust European industrial strategy.

French President Emmanuel Macron called for EU-wide reforms and a comprehensive pan-European investment plan to support innovation in green technologies, artificial intelligence, and quantum computing. He advocates both protective measures—like imposing a 30% tariff on Chinese goods or reducing the euro's value to counteract China's currency undervaluation and subsidies—and increased investments to secure Europe’s global economic standing. These proposals echo the findings of Mario Draghi’s recent report highlighting Europe's economic decline and the need for coordinated industrial and educational policy responses to the evolving geopolitical landscape.

The summit also featured a report by Deloitte assessing progress since the Antwerp Declaration's launch two years prior, which emphasized urgent industrial revitalization. Despite environmental activists criticizing the meeting for focusing heavily on industrial compliance rather than ambitious transformation, the discussions demonstrated EU leaders' intent to forge a clearer path toward economic sovereignty and industrial competitiveness.

As the summit concluded, EU leaders faced the difficult task of balancing diverse member state interests while confronting complex external economic pressures, particularly from China’s rising global industrial prowess. The outcomes will likely shape Europe’s industrial policy and economic strategy for years to come.