The EU is thrashing out a more muscular set of economic policies
The Economist
February 19, 2026
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The European Union (EU) is shifting its approach to economic policy, moving away from a cautious stance toward a more assertive strategy aimed at addressing growing geopolitical challenges. Following an informal meeting of EU leaders in Belgium, it became clear that Europe feels increasingly under pressure from external threats, including those posed by Russia, China, and even the United States. These perceived threats have convinced many within the bloc that maintaining business as usual is no longer sufficient. Leaders are now prioritizing faster economic reforms to strengthen the region's competitiveness and resilience.
The urgency of these changes was underscored by discussions at the Alden Biesen castle meeting, where leaders emphasized the need for a more muscular economic strategy. This shift reflects Europe's recognition of its vulnerability in key areas such as energy dependence on Russia and competition with the rapidly growing economies of China and India. Additionally, tensions with the United States over trade policies have further highlighted the need for the EU to act decisively. Leaders are exploring ways to accelerate reforms, including digital taxation, green initiatives, and industrial policy adjustments, to better position Europe in a globalized world.
These developments hold significant implications for businesses both within the EU and beyond. The push for economic reform is likely to reshape industries, creating opportunities and challenges for companies operating in Europe. For instance, stronger competition policies could lead to greater regulatory scrutiny for large tech firms, while investments in green technologies may open new avenues for innovation. Businesses will need to adapt quickly to these changes, as the EU's new approach signals a more proactive and assertive stance on economic affairs.
Moreover, the EU's decision to adopt a tougher economic strategy reflects its broader geopolitical priorities. By taking a more muscular approach, Europe aims to reduce its reliance on external powers and enhance its ability to navigate an increasingly uncertain global landscape. This shift not only aligns with the bloc's long-term interests but also underscores its determination to play a
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Originally published on The Economist on 2/19/2026