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Good morning, I’m Mared Gwyn. It’s Thursday, and EU leaders are about to descend on a remote castle in the Belgian countryside for talks on how to restore European competitiveness and revive a stagnant economy.
Enrico Letta and Mario Draghi – the Italian duo who diagnosed the EU’s outdated economic doctrine in two separate reports in 2024 – will also join the talks, two years after Draghi warned the continent could face “slow agony” if it didn’t act fast.
The informal “retreat” is not expected to result in any concrete decisions. But the momentum suggests that the talks could be consequential – and expose the fault lines dividing Europe’s biggest economies.
Introducing ‘Merzoni’: German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni have coalesced around a common position in recent weeks, advocating for an open approach to global trade and a deregulation drive.
Poland has joined the German-Italian calls for a massive simplification of EU regulation in order to slash red tape for business, in a non-paper that says that despite the Commission’s recent push to simplify laws, “the regulatory burden still remains too high.”
But there’s another school of thought emerging, driven by French President Emmanuel Macron, which calls for joint European debt to fund strategic investments through Eurobonds, and a “Made in Europe” requirement in public procurements to shield key industries from aggressive foreign competition.
Speaking to industry leaders in Antwerp yesterday, Macron defended his vision, saying that he didn’t believe in “protectionism”, but that neither did he believe in “such a naive continent where we are the only ones in this world not to protect local producers.”
“This is not a temporary shock. This is clearly a structural turning point,” Macron said.
His warning was pointedly directed at Europe’s struggling automotive sector, which the German and Italian leaders are so keen to defend: “If the automotive sector decides to buy Chinese steel, it’s over in three to five years’ time for these guys,” he said, bluntly.
Macron also echoed the recommendations of a French government strategy report, leaked earlier this week, which said a 30% depreciation of the euro against the renminbi or a 30% blanket tariff on all Chinese products might be necessary to counter the flood of cheap imports.
According to government sources, Spain, Europe’s fourth largest economy, is likely to back both Macron’s call for Eurobonds as well as the preference for Europe-made components, specifically in so-called “lead” markets including low-carbon steel.
Germany’s Merz has however pushed against calls for “Made in Europe”, saying it could scare off foreign investors, advocating for a lighter “Made with Europe” approach.
European Commission President Ursula von der Leyen, who hails from the same German political party as Merz, has indirectly acknowledged the Franco-German rift, saying that establishing the European preference in public contrasts is a “fine line to walk.”
The Commission chief has also repeatedly floated the need for a “two-speed” Europe in the run-up to today’s talks, saying a group of countries willing to further integrate their economies may need to do so without the 27 moving as a bloc. Still confused about what a two-speed Europe really means? Europe Today’s Jakub Janas explains it for you.
Speaking live to Europe Today earlier, economist and former Greek finance minister Yanis Varoufakis accused von der Leyen of coming up with “phrases that sound like a solution when they are simply a manifestation of a failure,” arguing that a more integrated “federal” Europe is the only way ahead.
“We have two choices – we are at a fork in the road. We can move in the direction of federation or we can disband Europe,” Varoufakis said, accusing EU leaders of choosing neither of both options and falling in the vacuum in between.
He also blamed Europe’s “disintegration” on a federal monetary system that isn’t backed by fiscal or investment pillars, saying Europe has been deprived of any investment in the past 20 years. Watch.
Our reporters are on the ground in Alden Biesen castle today – follow the action in our live blog.
In other news, a European Commission proposal to revamp Europe’s maritime sector and ports scheduled to be presented next week will be pushed to 4 March, according to a leaked document seen by Euronews’ Marta Pacheco. The strategy is also part of Europe’s push to counter fierce global competition – including in shipbuilding and maritime tech – and secure long-term industrial leadership.
The EU executive wants to redefine ports as energy and innovation hubs, to ramp up cleaner fuels, electrification, digitalisation and green infrastructure. Marta also reports that cutting energy prices was a key demand from industry leaders as they gathered yesterday in Antwerp – amid fears exorbitant prices are hurting some of Europe’s most strategic economies.
Also in this newsletter: NATO rejects the notion that it’s re-packaged existing missions in the Arctic in a bid to appease Trump, and the date is set for a crunch ruling that will determine Marine Le Pen’s presidential hopes – and France’s political future.
Ukraine will only hold elections after security guarantees and ceasefire in place, Zelenskyy says
Ukrainian President Volodymyr Zelenskyy has refuted reports suggesting he is planning to stage fresh elections under US pressure, saying a vote can only be held once ceasefire with Russia and security guarantees are in place, The Financial Times reported yesterday that Ukraine was mulling the possibility of holding a presidential election within the next three months, as well as a referendum on a prospective peace deal with Russia.
“We will move to elections when all the relevant security guarantees are in place. I have always said that the issue of elections is raised by various partners. Ukraine itself has never raised it,” Zelenskyy said in a WhatsApp chat with journalists on Wednesday.
“But of course we are ready for elections. I said it is very simple to do. Make a ceasefire, there will be elections…First comes security, then politics.”
Under Ukraine’s constitution, holding national elections while the country is under martial law is illegal. Martial law was declared across the country on 24 February 2022, the day Russia launched its full-scale invasion.
Gavin Blackburn has the write-up.
NATO rejects claim ‘Arctic Sentry’ is a rebrand to appease Trump
The NATO military alliance had barely announced the launch of its Arctic Sentry programme on Wednesday before it found itself fielding accusations that the new scheme, meant to appease United States President Donald Trump, is nothing more than a rebranding exercise, my colleague Alice Tidey reports.
The new multi-domain activity, agreed during a meeting between Trump and NATO Secretary General Mark Rutte in Davos last month, is meant to strengthen NATO’s posture in the Arctic and High North by bringing together the activities of the 32 allies in the region under one overarching operational strategy.
These will include Denmark’s Arctic Endurance, a series of multi-domain exercises designed to enhance the allies’ ability to operate in the region, and Norway’s upcoming exercise Cold Response, where troops from across the alliance have already begun to arrive, according to a statement.
“In the face of Russia’s increased military activity and China’s growing interest in the High North, it was crucial that we do more,” Rutte told reporters, explaining that everything NATO does in the Arctic will now come “together under one command.”
A senior NATO military officer pushed back on suggestions that Arctic Sentry amounts to little more than a rebranding exercise, noting that the model mirrors the alliance’s Baltic Sentry and efforts on the eastern flank, which have also evolved since their inception.
Alice has the full story.
Paris court sets 7 July for ruling in far-right leader Marine Le Pen’s EU funds graft appeal case
A Paris appeals court said on Wednesday it will rule on 7 July in a fraud case against far-right leader Marine Le Pen, in what is expected to be a pivotal moment for French politics, my colleague Gavin Blackburn writes.
A lower court handed the 57-year-old veteran politician a five-year ban from public office last year over a fake jobs scam which siphoned EU funds worth €2.9 million from the European Parliament, dashing her presidential ambitions.
If the appeals court upholds that bombshell ruling, the three-time presidential candidate would be banned from running in 2027, widely seen as her last chance at clinching the French presidency.
There are indications that the electorate is already turning their sights towards 30-year-old Bardella, with opinion polling suggesting he’s more popular than Le Pen. One poll suggested he would clinch victory in a presidential election if he were to run back in November.
Regardless of the outcome, the trial is having a major impact on how Le Pen’s National Rally (RN) – the party topping opinion polls right now in France – is playing its cards ahead of the 2027 presidential race.
Le Pen has said she would back her protégé Jordan Bardella as her substitute if the ruling is upheld. But she is now facing a delicate balancing act between actively elevating him as a potential president while preventing him from eclipsing her completely as she clings onto hopes she can run for president for the fourth, and likely final, time.
Read the full story.
More from our newsrooms
European Commission, Interpol and 100 others call to outlaw AI nudification tools. More than 100 international, humanitarian and child protection organisations are calling for urgent action against AI nudification apps and tools, amid a backlash against Elon Musk’s Grok. Indrabati Lahiri has more.
France’s assisted dying bill: Claims vs facts. France is engaged in a political debate over a controversial proposal to create a legal right to medically-assisted dying. One of the key concerns is the eligibility criteria, sparking a number of claims about how far the proposed law could go. Noa Schumann fact-checks.
Trump says he ‘insisted’ to Netanyahu that US talks with Iran continue over nuclear programme. The US President insisted that talks with Iran on a nuclear deal continue in a near three-hour private meeting with Israeli Prime Minister Benjamin Netanyahu at the White House on Wednesday. Gavin Blackburn has the story.
We’re also keeping an eye on
- European Parliament plenary session continues in Strasbourg
- European Commissioner for energy Dan Jørgensen is in Algeria to strengthen energy cooperation
That’s it for today. Peggy Corlin, Marta Pacheco, Jorge Liboreiro, Alice Tidey and Gavin Blackburn contributed to this newsletter. Remember to sign up to receive Europe Today in your inbox every weekday morning at 08.30.
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