EU leaders agree on sweeping economic overhaul to boost competitiveness

European Union leaders have broadly agreed on a plan to restructure the 27nation blocs economy to make it more competitive as they face antagonism from US President Donald Trump strongarm tactics from China and hybrid threats blamed on RussiaMeeting in a Belgian castle on Thursday the EU leaders agreed an action plan with a strict timeline for the economic restructuring European Commission President Ursula von der Leyen said The pressure and the sense of urgency is enormous and that can move mountains she saidThe plan to be presented formally in March would include measures to coordinate upgrading energy grids deepen financial integration and loosen merger regulations to allow European firms to grow to better compete globally she saidWe need European champions von der Leyen said European Council President Antonio Costa described the meeting as a real game changer as leaders threw their weight behind plans to further integrate and simplify the blocs financial systemsThe meeting had started with an image of unity between the two traditional power centers of the EU after each had publicly staked out different strategic positions French President Emmanuel Macron and German Chancellor Friedrich Merz arrived together crossing a drawbridge side by side into the 16thcentury Alden Biesen castleWe share this sense of urgency that Europe must take action Macron said while standing on a blue welcome carpet next to his German counterpart We want to make this European Union faster we want to make it better and above all we want to ensure that we have competitive industry in Europe Merz saidMerz and Italian Prime Minister Giorgia Meloni lead a wing of the bloc calling for deregulation rebooting Europes relationship with Washington and forging trade deals like the recent one struck with the Mercosur nations of South AmericaThe EU cannot continue to hyperregulate said Meloni Theres no time to lose France instead is leading a push for strategic autonomy meaning a bloc less dependent on WashingtonMacron argues that EU countries should buy exclusively from European producers as the continent pursues greater military spending as a response to Russian aggression in Ukraine Merz and Meloni say purchases should be from both foreign and European firmsIn comments to reporters as he arrived Macron said he was urging his partners to protect sectors that are particularly under threat like cleantech chemicals steel the car industry and defenceThere is also an increased pressure on us with competition sometimes unfair competition that is very intense with very strong pressure from China tariffs imposed on us by the Americans with threats of coercive practices Macron saidEU leaders will also debate new financial instruments to protect the bloc in a global trading system rocked by Trumps blitzkrieg of tariffs and Chinas restricting of critical mineral exportsMacron is renewing his call for the EU to be able to borrow money which he described as Eurobonds for the future that would provide an opportunity to challenge the hegemony of the dollarMost leaders are calling for action along the lines of the economic stimulus strategy called for by Mario Draghi former head of the European Central Bank The 2024 plan includes cutting regulations making infrastructure investments and establishing trade ties with more countriesBoth Draghi and Enrico Letta a former Italian Prime Minister beseeched leaders assembled in the castle to drastically restructure and integrate the blocs economyWe have way too many barriers that prevent money and capital from moving from one country to another way too many obstacles to simplification said Roberta Metsola president of the European ParliamentNo more words but more action said Metsola who like Merz and von der Leyen is a leading figure in the European Peoples Party which is the largest bloc in the European Parliament and claims 13 heads of EU states as membersCitizens across the bloc are hungry for a stronger EU and a more unified stronger and ambitious leadership amid military threats economic pressures and climate instability according to an official EU poll EurobarometerThere has never been a better time for European leaders national political leaders to actually leverage on these European citizens demand for greater European action said Alberto Alemanno a professor of EU law at the HEC Paris business schoolThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever