Brussels Playbook Podcast — Episode Summary

Episode Title: Omnibusted: The EU’s competitiveness conundrum
Date: February 13, 2026
Host: Sarah Wheaton (POLITICO)
Main Guests:

• Marion Gros (Sustainability Reporter)
• Carlo Martuscelli (Trade Reporter)
• Zia Weise (Senior Climate Reporter)
• Aitor Hernandez Morales (Iberian Affairs Expert)

Main Theme & Purpose

This episode takes a critical look at the European Union's latest efforts to address its lagging competitiveness compared to China and the U.S., focusing on:

• The symbolic gatherings of EU leaders and industrialists (in Antwerp and Aldenbeson Castle)
• “Omnibus” deregulation packages promoted by the European Commission
• The tension between industrial demands, regulatory rollback, and the EU Green Deal
• A special segment on recent political upheaval and elections in Portugal, with insight into national moods and implications for Brussels

Key Discussion Points & Insights

1. The State of the Competitiveness Debate (00:00–04:00)

• Backdrop: EU leaders and industry chiefs met in Antwerp and Aldenbeson Castle, discussing plant closures, high energy prices, declining investment, and a sense of EU economic malaise.
• Recurring Theme: The competitiveness debate is not new; the “Antwerp Declaration” by business lobbies is now three years old but little concrete progress has followed.
• Division:
  • France wants joint borrowing and “Buy European” initiatives.
  • Germany resists new EU debt.
  • Nordic countries are wary of protectionism.

Quote:
"Competitiveness has been the buzzword for years...And yet the divisions on actually doing anything remain."
— Sarah Wheaton (00:55)

2. Diagnosis Fatigue—Repeated Analysis, Little Action (04:00–05:15)

• Stagnation: Consensus exists on the issue and options, but progress stalls at the implementation stage.

Quote:
"I'm going to be a bit of a pessimist here and say that I don't think much is going to come from this."
— Carlo Martuscelli (02:36)

• The climate policy angle: Increasing criticism of Green Deal policies, but real solutions remain unclear.
• EU now frames any strategy through the competitiveness lens; "all the eggs" in one simplification (deregulation) basket.

3. Industry’s Perspective and Influence (05:14–07:40)

• The Antwerp event is dominated by the chemicals sector, who organize and frame the debate.
• Press excluded, making transparency a challenge.
• Chemicals industry claims existential threat: 20+ major plant closures since 2023; 30,000 jobs lost, and 200,000 more at risk.
• Deloitte report: On 84% of competitiveness factors, the EU is stagnating or declining.

Quote:
"It was a message that if we don't act now, we'll face extinction."
— Zia Weise (06:14)

• Some root problems (e.g., energy prices, loss of Russian gas, China’s export dominance) may be beyond the EU’s direct control.

4. The “Omnibus” Deregulation Drive (07:40–11:01)

• The Commission pushes “omnibus” legislation (bundles of deregulation) to reduce administrative burdens (35% for SMEs, 25% for larger firms).
• This simplification faces criticism from NGOs (as simple deregulation) and from businesses (creates regulatory uncertainty).
• European Ombudsman warns of rushed, opaque lawmaking and “maladministration”.

Quote:
"They're not approving the proposals that we make fast enough..."
— Zia Weise, summarizing von der Leyen's frustration (07:16)

• Key issue: The Commission is now reducing impact assessments to speed up changes, risking unintended consequences.

5. The Carbon Market Under Fire (11:01–13:58)

• The Emissions Trading System (ETS), the backbone of EU climate policy, is up for review and has become a lobbying battleground.
• Industry blames carbon pricing for high operating costs, wants the price reduced or for more free permits.
• The ETS is a 20-year-old policy, not just part of the Green Deal—its weakening would mark a major climate policy retreat.

Quote:
"If even that is now up for question, then I think really nothing's sacred."
— Zia Weise (12:58)

6. Green Deal vs Competitiveness – Rhetoric vs Reality (13:58–16:59)

• While some in Brussels say green rules are “baked in,” actual policy changes indicate climate policy is being sacrificed for competitiveness.
• Environmental policies are relaxed (e.g., for mining/water protection), contradicting official statements of synergy between Green Deal implementation and economic growth.

Notable Quote:
"The message is really clear that there is an opposition between environmental protection and competitiveness."
— Marion Gros (15:57)

7. Power Politics: Draghi, von der Leyen, and Federalism (17:23–23:16)

• Mario Draghi: His report emphasizes federal-style solutions—integrating energy grids, financial systems—but little has been implemented.
• Political Reality: While leaders publicly praise Draghi, national interests block collective progress.
• Von der Leyen’s Tactic: Threatens a “two-speed Europe” on capital markets union to coax reluctant countries.

Memorable Moment:
“It has been grimly amusing watching Mario Draghi get increasingly pessimistic, as if he's observing a patient dying.”
— Carlo Martuscelli (18:34)

8. External Pressures: China vs Trump, and IMF’s Take (23:16–26:15)

• Trump/US factor: Despite media focus, competitiveness angst is mostly driven by national priorities and, particularly, China—not the US.
• IMF Head Kristalina Georgieva’s view: The EU's growth isn't as dire as some leaders claim. Differences across member states are significant, and scrapping environmental regulation may yield only marginal gains.

9. The Political Mood in Portugal: Elections, Anger, and National Lessons (28:06–37:55)

Portugal’s Flooded Polls and Political Shifts (28:31–30:56)

• Presidential elections marred by severe storms, affecting turnout and logistics.
• Antonio Jose Seguro, once sidelined, becomes president-elect after cross-spectrum support to block far-right candidate Andre Ventura.

Rise of the Far-Right Chega Party (31:12–34:44)

• Chega’s rapid ascent: From 1 MP (2019) to largest opposition party.
• Ventura stoked anti-establishment, anti-Roma (and broader anti-elite) sentiment.

Corruption and Costa’s Shadow (34:44–36:09)

• Both main candidates campaigned against the legacy of Antonio Costa, now President of the European Council.
• Cost-of-living, housing, immigration, and perceived corruption fueled voter anger.

Brussels View on Costa (36:09–37:55)

• Costa remains respected in Brussels as a skilled negotiator, despite mixed legacy at home.

Notable Quotes & Memorable Moments

• On Competition Stalemate:
  "I don't see how getting people around a table once again to talk the issue out is going to change something."
  — Carlo Martuscelli (02:36)

• On Bureaucratic Shortcuts:
  "The executive is coming under fire and being accused of maladministration, effectively bypassing how the EU has always made laws."
  — Marion Gros (09:28)

• On the Green Deal’s Future:
  "If even [the ETS] is now up for question, then I think really nothing's sacred."
  — Zia Weise (12:58)

• On Policy Contradictions:
  "Environmental protection is constantly opposed to economic growth...the message is really clear."
  — Marion Gros (15:57)

• On Draghi’s Influence:
  "It has been grimly amusing watching Mario Draghi get increasingly pessimistic, as if he's observing a patient dying."
  — Carlo Martuscelli (18:34)

• On EU Economy Reality Check:
  "If you look at the numbers Georgieva pointed out, we're not doing that badly..."
  — Carlo Martuscelli (24:40)

Timestamps for Critical Segments

• 00:00–04:00 — Introduction, setting the competitiveness scene
• 04:00–07:40 — Discussion on industry priorities, Munich summit, and chemicals lobby’s influence
• 07:40–11:01 — “Omnibus” legislative packages and regulatory overhaul
• 11:01–13:58 — Emissions Trading System and carbon market debates
• 13:58–16:59 — Balance (and conflict) between Green Deal and competitiveness
• 17:23–23:16 — Draghi’s recommendations, political blocks, and threat of “two-speed Europe”
• 23:16–26:15 — External threats, Trump vs China, and macroeconomic perspective (IMF)
• 28:06–37:55 — Portugal’s election, populist rise, and Costa’s Brussels legacy

Overall Takeaways

• The EU’s competitiveness debate is locked in a familiar pattern of diagnosis and delay, compounded by conflicting national priorities and lobbying by powerful industries.
• Attempts to deregulate quickly are raising new concerns over transparency, uncertainty, and the rollback of hard-won climate progress.
• The political undercurrents across Europe (as highlighted in Portugal) show voter frustration and a turn toward candidates promising dramatic change, regardless of their backgrounds.
• The podcast closes with a nuanced appreciation for the complexity and intersectionality of EU politics—where every move on competitiveness, green policy, or deregulation plays out as both a technical policy debate and a reflection of deeper, shifting public moods across the continent.