European Union leaders gather in a Belgian castle on Thursday to thrash out how they can compete economically with a global rival like China and a less reliable ally like the U.S. as the rules-based world order frays.
EU growth has been persistently lower than that of the United States over the past two decades, with EU productivity and innovation, particularly in fields like AI, falling short.
The EU is now contending with Donald Trump's trade war, and most recently tariff threats over Greenland, as well as Chinese restrictions on exports of critical minerals that the 27-nation bloc urgently needs.
With the EU needing greater wealth to cover decarbonisation and digitalisation and strengthen its defence in the face of a belligerent Russia, the bloc is increasingly aware that now is the time for action.
European Council President Antonio Costa, who chairs EU summits, will host leaders for a brain-storming "retreat" at the 16th-century Alden Biesen castle in eastern Belgium to discuss what action to take.
Former Italian prime ministers Mario Draghi and Enrico Letta, authors of two influential reports in 2024 on the EU's competitiveness challenge and its single market, are also invited to share their views.
But Reinhilde Veugelers, senior fellow at think tank Bruegel, was sceptical whether the brainstorming on Thursday would bring more than just a "nice declaration".
Source: straitstimes