EU Leaders Strike Broad Economic Reform Deal, Vow to Forge 'European Champions' to Rival Global Competitors

On February 12, 2026, European Union leaders reached a broad consensus on restructuring the bloc's economy, agreeing on an action plan with a strict timeline to boost competitiveness amid mounting pressure from US tariffs, Chinese industrial prowess, and hybrid threats blamed on Russia. European Commission President Ursula von der Leyen stated that the sense of urgency is enormous, with measures set for formal presentation in March including coordinating energy grid upgrades, deepening financial market integration, and loosening merger rules to allow the emergence of "European champions" capable of competing globally against US and Chinese giants.

European Council President António Costa hailed the meeting as a "real game changer." However, deep internal divisions surfaced ahead of the summit: French President Emmanuel Macron renewed his push for a "Made in Europe" procurement strategy and common borrowing to fund strategic investments, while German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni cautioned against protectionism, advocating instead for deregulation, trade diversification, and using existing EU budgets to finance growth.