EU leaders retreat to moated fortress to debate €1 trillion joint debt plan
EU leaders gathered Thursday, February 12, at the isolated Alden-Biesen Castle in Limburg, Belgium. This informal "strategic retreat" aims to solidify European unity amid intensifying global security and economic threats
European Council President António Costa initiated this reflection format to allow candid dialogue outside Brussels. While military defense remains a priority, the summit’s core focus has shifted toward a high-stakes debate over Europe’s economic survival.
The trillion-euro gamble
French President Emmanuel Macron is pushing for a massive joint debt issuance of €1 trillion. Macron argues that "safe assets" in the form of European bonds could challenge the US dollar's dominance, especially given recent volatility in American fiscal policy.
This proposal draws support from former Italian Prime Ministers Enrico Letta and Mario Draghi. Both experts warned the 27 leaders on Thursday that without collective investment in innovation and defense, Europe faces industrial irrelevance compared to the US and China.
The "frugal" resistance
Germany and the Netherlands remain staunchly opposed to new common debt. Berlin has publicly dismissed Macron’s proposal as a "distraction" from necessary national fiscal reforms and spending efficiency.
The "frugal" bloc points to the €577 billion post-Covid recovery fund, which remains unpaid. Repayments are set to drain €24 billion (EUR) annually from the next EU budget, leaving little room for new financial adventures.
A fortress of reflection
The choice of Alden-Biesen, a 16th-century moated castle once held by the Teutonic Knights, underscores the "Fortress Europe" mentality. The summit occurs against a backdrop of rising nationalist-sovereignist sentiment that threatens further federal integration.
António Costa emphasized the gravity of the moment, noting that the return of high-intensity war and hybrid attacks means "the EU can no longer sleep soundly." No formal decisions are expected today, but the retreat will determine the roadmap for a future white paper on European federalization.
Translation by Iurie Tataru
