Zürcher Nachrichten - EU vows reforms to confront China, US -- but split on joint debt

EUR -
AED 4.299797
AFN 74.931614
ALL 96.031574
AMD 440.479809
AOA 1073.632019
ARS 1630.923879
AUD 1.658735
AWG 2.110384
AZN 1.991069
BAM 1.957572
BBD 2.356632
BDT 143.793374
BHD 0.441991
BIF 3477.543108
BMD 1.17081
BND 1.491605
BOB 8.084868
BRL 5.951814
BSD 1.170009
BTN 108.01968
BWP 15.698335
BYN 3.415189
BYR 22947.867085
BZD 2.353219
CAD 1.622572
CDF 2692.862132
CHF 0.922241
CLF 0.026918
CLP 1062.884195
CNY 8.028711
CNH 7.989575
COP 4321.376075
CRC 544.269303
CUC 1.17081
CUP 31.026453
CVE 110.364877
CZK 24.380949
DJF 208.360551
DKK 7.472634
DOP 70.751913
DZD 154.895116
EGP 62.392677
ERN 17.562143
ETB 182.71729
FJD 2.590357
FKP 0.884233
GBP 0.868934
GEL 3.137852
GGP 0.884233
GHS 12.881943
GIP 0.884233
GMD 86.055927
GNF 10266.290664
GTQ 8.9511
GYD 244.79212
HKD 9.170184
HNL 31.075122
HRK 7.538722
HTG 153.391609
HUF 375.716879
IDR 19879.175267
ILS 3.601691
IMP 0.884233
INR 108.120574
IQD 1532.787123
IRR 1540639.010301
ISK 143.799546
JEP 0.884233
JMD 184.186683
JOD 0.830104
JPY 185.184012
KES 151.490849
KGS 102.387268
KHR 4687.98221
KMF 499.935712
KPW 1053.715591
KRW 1726.657212
KWD 0.361886
KYD 0.975028
KZT 559.409525
LAK 25810.034579
LBP 104795.918983
LKR 368.813765
LRD 215.285633
LSL 19.207782
LTL 3.457096
LVL 0.708211
LYD 7.42572
MAD 10.885551
MDL 20.148115
MGA 4861.150068
MKD 61.686862
MMK 2458.707556
MNT 4181.642855
MOP 9.439759
MRU 46.500081
MUR 54.747097
MVR 18.089
MWK 2028.840729
MXN 20.374509
MYR 4.655158
MZN 74.873654
NAD 19.207782
NGN 1611.209698
NIO 43.057679
NOK 11.152207
NPR 172.834243
NZD 2.00562
OMR 0.450179
PAB 1.169999
PEN 4.008608
PGK 5.137649
PHP 69.525596
PKR 326.427607
PLN 4.253036
PYG 7589.868588
QAR 4.266561
RON 5.094543
RSD 117.344404
RUB 92.024048
RWF 1712.955071
SAR 4.39342
SBD 9.423358
SCR 16.267549
SDG 703.656832
SEK 10.78531
SGD 1.490218
SLE 28.805163
SOS 668.685149
SRD 43.838662
STD 24233.39373
STN 24.521144
SVC 10.238265
SYP 129.432241
SZL 19.203476
THB 37.319602
TJS 11.121242
TMT 4.109542
TND 3.416892
TRY 52.087256
TTD 7.935843
TWD 37.133975
TZS 3047.034824
UAH 50.705169
UGX 4328.714002
USD 1.17081
UYU 47.533016
UZS 14309.950047
VES 554.33992
VND 30830.342348
VUV 139.819173
WST 3.244211
XAF 656.514677
XAG 0.015136
XAU 0.000244
XCD 3.164171
XCG 2.108745
XDR 0.818368
XOF 656.551158
XPF 119.331742
YER 279.296731
ZAR 19.094782
ZMK 10538.709692
ZMW 22.377104
ZWL 377.000196
  • NGG

    1.7400

    89.27

    +1.95%

  • RIO

    4.1600

    98.82

    +4.21%

  • GSK

    0.8700

    56.71

    +1.53%

  • RELX

    0.9250

    34.29

    +2.7%

  • CMSC

    0.2150

    22.355

    +0.96%

  • BTI

    -0.4800

    58.32

    -0.82%

  • RBGPF

    -13.5000

    69

    -19.57%

  • RYCEF

    -0.5000

    15.25

    -3.28%

  • CMSD

    -0.0600

    22.29

    -0.27%

  • BP

    -2.5600

    44.68

    -5.73%

  • BCC

    4.5600

    79.24

    +5.75%

  • JRI

    0.1050

    12.795

    +0.82%

  • VOD

    0.2800

    15.59

    +1.8%

  • BCE

    0.1070

    23.952

    +0.45%

  • AZN

    3.6050

    204.475

    +1.76%

EU vows reforms to confront China, US -- but split on joint debt
EU vows reforms to confront China, US -- but split on joint debt / Photo: Ludovic MARIN - AFP

EU vows reforms to confront China, US -- but split on joint debt

EU leaders pledged after talks Thursday to move ahead swiftly with reforms to revive Europe's flagging economy but were split on calls for joint debt to help the bloc confront twin threats from China and the United States.

Text size:

Reducing Europe's dependencies on countries outside the bloc has gained greater urgency because of geopolitical shocks, intensified global competition and an economy that lags behind bigger powers.

Leaders agree on a common diagnosis that Europe's moribund economy needs a kickstart and had hoped a day of "brainstorming" in a castle in eastern Belgium would help them agree on the cure.

"We share the same sense of urgency. We need to act immediately and accelerate, because we are being pushed around by international competition," French President Emmanuel Macron said after the talks.

The discussion "brought a new energy" on building a more resilient economy, echoed EU chief Antonio Costa, promising "concrete measures" would be taken in the next leaders' meeting in March.

"One Europe, one market," European Commission President Ursula von der Leyen told reporters, vowing to better integrate the EU's single market to unlock private capital that the bloc's companies need to scale up.

But big divisions remained on show among the EU's 27 capitals.

Macron and German Chancellor Friedrich Merz sought to present a united front when arriving at the talks, but the key powers have publicly diverged on France's push to favour EU companies and for more joint debt.

On the crucial matter of debt, the lines did not appear to have moved.

"We have taken on European debt in exceptional situations -- but those were exceptional situations," Merz said afterwards.

"We have to make do with the money we have," he said.

Macron also warned that climate action should not be sacrificed on the altar of boosting the economy, saying it would be a "strategic error" to abandon it -- contrasting with Merz's strong push to slash EU red tape across all sectors.

- 'Made in Europe' -

The French-backed "Buy European" push remained on the table after Thursday's talks, despite protectionism concerns by free trade advocates including Sweden and the Netherlands -- but with caveats.

"On European preference, I feel that there is a broad agreement on the need to use it in the selected strategic sectors, in the proportional and targeted way," Costa said.

The EU executive will publish a proposal this month for rules that would demand governments prioritise European-made goods in public contracts.

Macron said the leaders would define which sectors during the March summit.

Merz has said the EU should seek a "Made with Europe" approach rather than "Made in Europe, a message echoed by Japanese companies.

In the latest draft seen by AFP Thursday, the commission appeared to open the door to Germany's wishes with the proposal that it would identify "trusted partners" and allow content from them to be "equivalent" to European content.

Partners could include countries like Japan with whom the EU has a trade deal.

- Two-speed Europe -

The EU's list of concerns is long including lacklustre economic growth compared with its global rivals, and dependence on countries outside the bloc including China for rare earths essential for industry.

Leaders, backed by influential European figures, believe the key to transforming the 27-country bloc's economy is to deepen the single market and make it easier for businesses to work across the continent.

They heard from former European Central Bank chief Mario Draghi and Italian ex-premier Enrico Letta, the authors of 2024 reports guiding Europe.

Draghi told leaders the EU must reduce barriers and mobilise Europeans' savings and backed the call for "targeted" preference for European companies, an EU official said.

Two paths promoted by the EU to become more competitive are "simplifying" EU rules to reduce the administrative burden for businesses and striking more trade deals -- easier said than done.

A recent trade agreement with the South American Mercosur bloc has come up against fierce opposition while changes to EU laws have been bogged down in the bloc's legislative process.

Draghi also called for "enhanced cooperation", which would mean EU states that want to can move forward on certain reforms if the 27 states can't agree.

Macron warned that if progress is not made on reforming the single market by June, willing EU states should move forward without others.

The EU executive will also propose next month the creation of a new legal system for businesses outside of the scope of member states -- the so-called 28th regime -- to make it easier for companies to work across the bloc.

G.Kuhn--NZN