European leaders gathered in Belgium for an informal EU competitiveness summit focused on reducing energy costs and strengthening the internal market ahead of the March European Council. Energy pricing, carbon market reform and industrial strategy emerged as central themes in a debate shaped by geopolitical pressure and diverging national approaches.
EU competitiveness summit in Belgium: focus on energy prices and European responses
European leaders met on 12 February for an informal EU competitiveness summit in Belgium ahead of the March European Council. The purpose of the meeting was to identify ways to cut energy costs and improve the functioning of the internal market, so that European companies can remain competitive and withstand the challenges posed by the United States and China.
The competitiveness debate at the EU competitiveness summit
The gathering at Alden Biesen Castle, not far from Maastricht, was not intended to deliver binding decisions but to allow leaders to exchange views and seek alignment on a common course of action. “We share a sense of urgency: our Europe must act,” said French President Emmanuel Macron. The summit focused on deepening the single market, progressing towards a European capital markets union and reducing high energy costs in Europe.
Before the start of the summit, a restricted group of 19 EU Member States discussed these same issues. It was reported that there was agreement on proceeding with a rapid review of CO2 taxation mechanisms. The main points of discussion were the need to streamline European regulation and how to respond to US tariffs.
Macron stated that Europe should concentrate on selected strategic sectors such as clean technologies, chemicals, steel, automotive and defence. This preference should be understood as “a defensive measure” made urgent by “unfair competitors who no longer respect World Trade Organization rules”. France’s position does not fully align with Germany’s. Chancellor Friedrich Merz supports a more aggressive deregulation agenda and new trade agreements.
While differences remain between Paris and Berlin, Germany and Italy appeared closer in their positions. Italy, Germany and Belgium hosted the pre-summit meeting, without extending the invitation to Spain. According to official statements, the discussion addressed initiatives necessary to relaunch European industry. Among these is the revision of the EU ETS, the Union’s carbon pricing system.
Merz and Macron are also divided over the EU-Mercosur trade agreement. The German chancellor has called for its swift entry into force, while Macron described it as “a bad agreement”.
The European Union has already started to roll back elements of the Green Deal as part of a broader push for deregulation, supported by a majority of Member States. Friedrich Merz and Giorgia Meloni called for accelerating this process and for introducing an “emergency brake” on new EU legislation.
Energy prices and national measures
After the pre-summit meeting co-chaired with Merz, Italian Prime Minister Giorgia Meloni focused her remarks on energy prices.
“Personally, I focused on energy prices,” Meloni said. “National responses are needed, such as the comprehensive measure we will bring to the Council of Ministers next week. But European-level responses are also required, because this is the most serious issue threatening competitiveness. We must begin with a profound revision of the ETS system and put a stop to financial speculation. Then we need to amend the CBAM directive.”
Italy announced an energy decree providing a discount on the Asos component of electricity bills, the system charge that finances renewables and cogeneration, for the whole of 2026. The measure applies to small and medium-sized enterprises connected to low-voltage networks, with a benefit estimated at around €11.5/MWh, approximately 27 percent of the current Asos rate for the affected users.
