EU Leaders Vow Action to Bolster Economy Amid Dual Threats from China and US

Brussels. EU leaders have committed to working boldly to strengthen Europe's economy while facing a dual threat from China and the United States.

This is a challenge that has long surrounded the European Union, but it has gained greater urgency due to geopolitical shocks, intense global competition, and an economy lagging behind major powers.

Leaders share the view that Europe's struggling economy needs fixing, but they do not agree on the cure.

While French President Emmanuel Macron and German Chancellor Olaf Scholz were keen to present a united front on Thursday, they were publicly divided over backing EU companies and France's push for more joint debt.

Macron said, "We agree on this sense of urgency. Our Europe is facing 'very strong pressure' from unfair competition from China and the US."

Scholz said, "We want to reform this European Union quickly. We want to make it better. I am pleased that Macron and I almost always agree on these matters."

The 'Buy European Goods' policy could be a source of heated debate in Thursday's talks, as several states, including proponents of free trade like Sweden and the Netherlands, have warned against resorting to protectionism.

German Chancellor Scholz said on Wednesday that such a step should only be used as a 'last resort.'

Opening the Door to Private Investment

The meeting on Thursday, which came up in discussion as a 'strategic think-tank,' is not expected to yield any immediate decisions.

European Council President Charles Michel stated that the discussion would focus on how to open up private investment in the 16th-century 'Elden Bissen' palace, without mentioning joint debt.

Unlike their American counterparts, European companies face challenges in increasing access to capital, even though they are home to some of the world's largest economies, including Germany and France.

Before the talks began, Michel stated, "We have a clear priority to strengthen Europe's economic growth, which is essential for our prosperity."

The EU's list of concerns is long, including weaker economic growth compared to China and the United States, and dependence on non-bloc countries, including China, for rare minerals essential for industry.

Italian Prime Minister Giorgia Meloni expressed concern over energy prices, which are high here compared to most industrial economies. European businesses also find it difficult to match foreign competitors.

Leaders, backed by influential European figures, believe that the key to transforming the EU economy lies in deepening the single market and making it easier for businesses to operate on the continent.

They will hear from former European Central Bank chief Mario Draghi, who authored a landmark report 18 months ago. This report has guided efforts to make the EU more competitive.