EU to Discuss Paradigm Shift at Competitiveness Summit

Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.

The EU’s declining economic power versus major geopolitical rivals is increasingly sounding alarm bells in the region’s capitals, with leaders concerned that companies are frittering away their competitive edge to US and Chinese firms. Wars near and far, the possibility of another Trump presidency and dependence on others for energy and critical materials are jangling nerves, compelling leaders to discuss a “paradigm shift” at this week’s summit aimed at boosting competitiveness in a hostile world. It may mean fast-tracking some long-delayed policy prescriptions — like bringing European financial markets closer together, with more joint borrowing for industry and defense. “In light of geopolitical tensions and more assertive policy measures taken by international partners and competitors,” according to the draft conclusions of the summit that we’ve seen, “Europe needs an urgent paradigm shift.”