German govt spokesperson: EU leaders agree internal market must be strengthened and protected from unfair competition

At an informal summit in Belgium, European Union leaders acknowledged the need to strengthen and protect the bloc's internal market amid growing challenges from U.S. trade policies and Chinese competition, according to statements from German government spokesperson Stefan Kornelius, who emphasized the urgency of safeguarding European economic interests. Discussions centered on addressing systemic weaknesses, including high energy costs, regulatory complexity, and declining global competitiveness. While consensus existed on the importance of reinforcing the single market, divisions emerged over strategy. French President Emmanuel Macron advocated for protectionist measures, such as mandating public procurement of European goods in critical sectors like steel and defense, to bolster domestic industries according to analysis. Conversely, German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni prioritized expanding trade partnerships, arguing that a "made with Europe" approach—focusing on collaborative global value chains—would better counter external pressures.

Recent agreements, such as the EU-Mercosur free trade deal, highlight efforts to diversify trade relationships, though analysts note its economic impact will remain limited, contributing an estimated €90 billion ($90 billion) to the EU economy by 2040. Proposals to streamline energy markets, revise emissions trading systems, and reduce bureaucratic hurdles were also debated, though initial market reactions to potential reforms remained cautious. Former Italian Prime Minister Enrico Letta proposed a "One Market Act" to deepen integration in financial services, energy, and infrastructure, framing deeper unity as essential to countering external economic coercion. Despite these initiatives, persistent disagreements over the balance between protectionism and globalization underscore the EU's ongoing struggle to reconcile national interests with collective resilience in a shifting global trade landscape.