Leaders of the European Union agreed on Thursday (February 12, 2026) to move ahead with a plan to restructure the bloc’s economy and make it more competitive in the global market.
The decision was taken during a meeting held at a castle in Belgium, where heads of government from the 27 member countries discussed economic challenges and global pressures. The leaders said the European economy must become stronger and more flexible to deal with increasing competition and political tensions.
According to European Commission President Ursula von der Leyen, the leaders approved an “action plan” with a clear and strict timeline for carrying out the economic reforms. She said the current global situation has created a strong sense of urgency among member states.
EU leaders are facing several external pressures. They pointed to strained relations with U.S. President Donald Trump, concerns about trade practices and economic influence from China, and hybrid threats that they say are linked to Russia. These challenges, they said, require a united and coordinated response.
Von der Leyen said, “The pressure and the sense of urgency is enormous, and that can move mountains.” She explained that the reforms will focus on boosting innovation, strengthening industries, improving energy security, and reducing dependence on outside powers.
The action plan is expected to include measures to support businesses, promote new technologies, and simplify regulations across the bloc. Leaders also stressed the need to invest more in defence, digital infrastructure, and green energy.
The agreement marks an important step as the EU tries to protect its economic interests and remain competitive in a fast-changing global environment. Further details of the plan are expected to be announced in the coming months.