Europe attempts to resist economic pressure from the US and China

European leaders met yesterday at Alden Biesen Castle in Belgium for an informal meeting on competitiveness. For several years now, heads of state and government have been discussing the continent's economic decline, without managing to reverse the trend. Swedish Prime Minister Ulf Kristersson summed up the prevailing sentiment, referring to "a lot of talk and very little action".

The figures confirm this alarming diagnosis. According to the European Policy Innovation Council, only 15% of the 383 measures proposed by Mario Draghi in his September 2024 report have been implemented. A follow-up study by Deloitte also shows that 83% of competitiveness indicators have stagnated or declined since that date. The former president of the European Central Bank has once again warned of a "slow agony" if nothing is done quickly. He emphasised that the international context has become even more unfavourable, marked by China's trade offensive and the rise in US customs duties. One European diplomat summed up the situation bluntly: Europe has become an adjustment market for China and an object of coercion for the United States.

Faced with this pressure, the EU-27 have identified several priority areas for action. Reform of the electricity market is at the top of the list, as energy costs are significantly higher in Europe than across the Atlantic. The capital markets union must also be accelerated in order to better mobilise European savings to finance investment. Leaders also want to revise competition rules to allow the emergence of continental industrial champions, a major shift after years of reluctance. The creation of a "28th legal regime" should facilitate the creation of online businesses, with a common framework applicable throughout the Union. Finally, the establishment of a European preference aims to protect certain strategic sectors from external competition.

These ambitions are accompanied by a stated desire for regulatory simplification. Commission President Ursula von der Leyen has called on Member States to stop over-transposing European directives, which creates divergences and increases constraints. She also warned that the Commission could make greater use of infringement procedures to enforce common rules. German Chancellor Friedrich Merz took this logic further, calling for a "regulatory clean slate" to ease the burden on businesses.

However, political differences remain, particularly on the financial resources. Emmanuel Macron is defending the idea of a new joint loan to finance strategic investments, a proposal that has been met with caution by Berlin. The debate on these Eurobonds has been postponed until the summer, as part of discussions on the future European budget. The tensions between France and Germany illustrate the fragility of the Franco-German engine, even though the two leaders expressed their willingness to cooperate when they arrived at the summit.

Aware of the urgency, Europeans now want to set specific deadlines. Emmanuel Macron has raised the possibility of resorting to enhanced cooperation if unanimity cannot be achieved. The Commission will present a detailed action plan at the European Council meeting on 19 March. After years of diagnoses and reports, the 27 member states know that their credibility now depends on their ability to turn these promises into concrete decisions. Le Monde

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Africa

🇰🇪 Kenya – 🇸🇴 Somalia • Kenya will reopen its land border with Somalia in April, which has been closed for 15 years due to attacks by Islamist al-Shabaab fighters. The two countries had already discussed a gradual reopening, but deadly attacks had delayed the process. The Kenyan authorities want to reconnect the local populations, despite bilateral relations marked by persistent security and diplomatic tensions.

🇸🇩 Sudan • The UN Human Rights Office says that the RSF committed atrocities during the capture of al-Fashir in October 2025, which may constitute war crimes and crimes against humanity. More than 6,000 people were killed during the first three days of the offensive, according to interviews with more than 140 victims and witnesses. The UN calls on states to respect the arms embargo.

Americas

🇨🇺 Cuba • The Cuban government has introduced emergency measures to save fuel in response to the halt in oil deliveries, particularly from Venezuela and Mexico, under pressure from the US. Transport, schools and universities have been disrupted, while airlines have had to adapt their flights due to a lack of kerosene. The authorities have also closed some hotels, while residents face shortages and increasing difficulties.

🇻🇪 Venezuela • Interim President Delcy Rodriguez has promised to hold ‘free and fair’ elections, more than a month after Nicolas Maduro was captured in a US military operation. The National Assembly has postponed the adoption of an amnesty law intended to free political prisoners, while thousands of demonstrators have called for amnesty in Caracas. The authorities remain under pressure from the United States.

🇧🇷 Brazil • A 12 billion reais fraud involving the small Master bank has rocked political, financial and judicial circles, with its owner Daniel Vorcaro accused of falsifying balance sheets and mobilising influential supporters to delay bankruptcy. Judges, ministers and elected officials are named in the investigation, and the courts are now examining the involvement of senior officials. President Lula has promised that all accomplices will be punished.

🇺🇸 United States • The Environmental Protection Agency has repealed the ‘Endangerment Finding’, the key text that has regulated greenhouse gas emissions from vehicles and power plants since 2009. President Donald Trump and agency chief Lee Zeldin are presenting this decision as a major deregulation, while NGOs are warning of a risk of massive increases in emissions and legal action is expected.

Asia-Pacific

🇮🇷 Iran • Iran has said it is prepared to ‘dilute’ its 60% enriched uranium if the United States lifts all sanctions, according to the head of the Iranian Atomic Energy Organisation. The country has more than 400 kg of highly enriched uranium, well above the limit set by the 2015 agreement.

🇮🇷 Iran • Iranian authorities have arrested five figures from the Reformist Front and sentenced Nobel Peace Prize winner Narges Mohammadi, while NGOs report thousands of deaths and tens of thousands of arrests during the protests.

🇯🇵 Japan • Prime Minister Sanae Takaichi won a landslide victory in the general election, with her Liberal Democratic Party securing a two-thirds majority in the lower house. She has promised a ‘major policy shift’, with fiscal stimulus measures, a more assertive defence policy and a tougher stance on immigration.

🇧🇩 Bangladesh • The Bangladesh Nationalist Party claimed a landslide victory in the general election, winning 212 out of 300 seats according to television projections, which should allow Tariq Rahman to become the next Prime Minister. The Islamist coalition Jamaat-e-Islami is contesting the results and denouncing inconsistencies. The electoral commission has not yet published the official results of this highly anticipated election since the fall of the previous regime in 2024.

🇹🇭 Thailand • The Bhumjaithai party, which won the general election with 193 out of 500 seats, has reached a coalition agreement with the Pheu Thai party, which came third with 74 seats, Prime Minister Anutin Charnvirakul has announced. The support of the Pheu Thai Party, allied with smaller parties, brings the coalition to around 275 seats, ensuring a parliamentary majority and strengthening political stability after a period of tension.

🇯🇵 Japan – 🇨🇳 China • Japan arrested Chinese captain Zheng Nianli and seized his fishing boat in the exclusive economic zone off Nagasaki after he refused to comply during an inspection. Ten other sailors were on board. China protested and called on Tokyo to respect the bilateral fishing agreement and the rights and safety of Chinese crew members.

🇦🇲 Armenia – 🇦🇿 Azerbaijan – 🇺🇸 United States • US Vice-President JD Vance visited Yerevan to consolidate the peace agreement signed in August between the two countries under the auspices of Washington. He met with Prime Minister Nikol Pashinyan, announced the sale of US drones worth $11 million and signed a civil nuclear agreement. 

Europe

🇩🇪 Germany – 🇫🇷 France • German Chancellor Friedrich Merz said he was discussing extended nuclear deterrence with French President Emmanuel Macron. He said he wanted to strengthen an autonomous European pillar within NATO at the Munich Security Conference, which runs until Sunday.

🇫🇷 France – 🇷🇺 Russia • Emmanuel Macron wants to resume dialogue with Vladimir Putin in a ‘well-organised’ European framework with few interlocutors. The French President explained that the technical contacts resumed in early February had made it possible to rebuild channels of discussion, while confirming that Russia ‘does not want peace now’. He now wants to share these advances with European partners in order to coordinate the approach.

🇺🇦 Ukraine • President Volodymyr Zelensky has stated that elections in Ukraine will only take place after a ceasefire with Russia and the provision of security guarantees. He was responding to reports of a presidential election and referendum planned for mid-May under pressure from the United States. The Kremlin and President Donald Trump have also called for elections to be held as part of the peace talks.

🇽🇰 Kosovo • The Kosovo Parliament has elected Prime Minister Albin Kurti's government, ending a year of political paralysis following the early parliamentary elections in December. The leader of the Vetëvendosje party, supported by minority elected officials, wants to accelerate international loans, strengthen defence investments and continue normalising relations with Serbia, despite ongoing tensions over Kosovo's independence.

🇮🇳 India – 🇫🇷 France • India has approved a €33.4 billion mega military order including the purchase of 114 Rafale aircraft, a green light hailed by the Elysée as a very important milestone. Discussions are continuing between Dassault and the Indian Air Force, with the majority of the aircraft to be manufactured locally, in line with the ‘Make in India’ initiative.

🇺🇸 United States – 🇪🇺 Europe • The US State Department has entered into discussions with far-right European think tanks, including the Western Arc in Paris and the British Free Speech Union, for funding from Washington. The Heritage Foundation has provided a list of groups deemed compatible with MAGA ideology. The organisations concerned want to strengthen transatlantic cooperation and develop an ideological and political alliance.

🇺🇦 Ukraine – 🇨🇳 China • Ukrainian Foreign Minister Andrii Sybiha has invited his Chinese counterpart Wang Yi to visit Ukraine, believing that China can play an important role in achieving a just peace with Russia. The two officials met in Munich, with Beijing saying it was ready to provide further humanitarian aid and maintain dialogue to support a political solution.

🇷🇺 Russia • The Kremlin has confirmed that WhatsApp has been blocked in Russia, citing the company's unwillingness to comply with Russian law. The authorities are seeking to promote Max, a local messaging service controlled by the giant VK, which does not guarantee the confidentiality of messages. Video call features are already largely unusable, and the creation of new accounts has been restricted, prompting criticism among users, including soldiers.

Middle East

🇮🇱 Israel – 🇵🇸 Palestine • The Israeli security cabinet has approved measures to facilitate land purchases by settlers in the West Bank, a territory home to some 3 million Palestinians. Germany, the European Union and the UN have denounced this as a step towards ‘de facto annexation’ and a violation of international law. Palestinian President Mahmoud Abbas has called on the United States and the international community to respond.

🇺🇸 United States - 🇵🇸 Palestine • President Donald Trump will announce a multi-billion dollar reconstruction fund for Gaza at the first meeting of his Board of Peace on 19 February in Washington, with at least 20 countries participating, according to Reuters. Financial contributions and contingents of several thousand soldiers for an international stabilisation force will be detailed, while the priority remains the disarmament of Hamas and the establishment of a local civil administration.