
EU leaders gather at Alden Biesen castle to debate how to revive Europe’s economy — and whether “strategic autonomy” can survive internal divisions.
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Good morning. It's Thursday, February 12th, and this is the Brussels Playbook podcast, the Vibe. Today it's strategic autonomy meets strategic dysfunction. EU leaders are gathering in a castle in Limburg for an informal retreat and they're going to discuss how to revive Europe's economy. Also on the table, the parliament has sued the commission over Hungary. And we'll get a hint on who's going to win that case today. And a little taste of castle diplomacy. I'm Zoya Sheftolovic, POLITICO's chief EU correspondent, and with me today is our policy editor, Sarah Wheaton.
C
Hey, Zoya, I'm glad to be with you, but like, aren't you supposed to, like, be at that castle to cover this summit?
B
Listen, the things I do for this podcast, that's where I'm going next, Sarah.
C
All right, well just be careful, don't fall.
B
While I won't be running this time, it'll be a bus that ferries me to Limburg. All right, let's get started. This is an informal retreat that Antonio Kosta has organized. This is something that he's been doing lately. It's kind of an innovation of his. The idea is actually to get leaders together informally and to get them to chat, really buy into how they're going to make changes to the EU at that top, top level and then go back to their ministries and give instructions. So can you tell us a little bit about this particular one? What's he doing? What's he up to?
C
Well, I always like to imagine these leaders are doing like trust falls and like team building exercises, but probably they'll just be sitting around a table at Alden Bees and Castle focused on fixing Europe's economy. You know, things we've heard before, rebuilding competitiveness. They are going to be coming rate from Antwerp where they just indeed had, as you discussed yesterday, they had this competitiveness discussion with industry, but ultimately they're going to be chit chatting. They're probably not going to make a lot of firm decisions here.
B
That's true. But on the other hand, I do think that there is a sense at this meeting specifically that something's got to change. And that's what I've been hearing from sources around town for several weeks now, actually, Sarah, because they are coming to grips with the fact that the European economy really needs really electric shock therapy. And a lot of the easy fixes have been done. You know, they've done the low hanging fruit, as some around town might say. They've plucked it, picked it, eaten it, delicious. But now they've got to do some of the really tough stuff, stuff like completing the capital markets union, the banking union. Energy prices are a big priority for them as well at this one because prices are so high in certain countries, and I hasten to add, not in all countries. You've got high prices in the southern Europe, you've got reasonable prices in other parts of Europe. You know, you've got taxes on energy in some countries, you don't have in other countries. So this is part of what the commission wants to do. It wants to get all of these leaders together and it wants them to really buy into the idea that affordable energy prices are a priority for everyone. Because European competitiveness is a team sport, so to speak. So yeah, I think that's part of what they'll be talking about. There'll be other things as well. They're very keen to unlock people's savings. I keep hearing from various folks around town, one of the problems is that Europeans are risk averse. They put their money in the stock market. They certainly don't put their money in European stock markets. And by the way, there are so many of them. The idea is like we've got to get those savings invested. We've got to figure out how we do that. But again, that requires countries to accept that, you know, maybe my little tiny stock market doesn't exist anymore because we need one giant European one or maybe two or three. So that's the sort of stuff that they're talking about.
C
Yeah, I mean, look, I gotta be honest, this is where I start rolling my eyes because, you know, the same old roadblocks just keep popping up. And you've already been seeing some rising tensions ahead of this meeting, right?
B
Yeah, look, as always, there's a summit and then there's the pre summit summits which have been happening all over. They've been putting out these papers saying this thing is a priority or that thing is a priority. You've got France sort of saying we've got to buy European, we've got to make sure that our industry is booming as a result of spending a lot of money on that. And you've got competing papers saying, hey, hey, hey, hold on a second. To stay competitive, we've got to engage with Other countries as well. We can't just be protecting our industries. I do think there is a nuance to those positions that's starting to appear a bit. The other thing, Sarah, is we've got Mario Draghi and Enrico Letter coming in to speak to the leaders. So maybe they'll focus minds.
C
Yeah, well, indeed. One idea that Draghi has kind of been shopping around is that if all EU27 countries can't agree, then maybe smaller groups should move ahead on some of these initiatives. That's code for a two speed or multi speed Europe, at least to my ear.
B
Yeah. And I think that is exactly what I'm hearing again from my sources. More and more you start hearing them say, we'd rather do it as a group of 27, we'd like unanimity, that would be great. But if we can't get everyone on board, well, we can do it with a smaller group and then others can join later if they wish to, if they see that it's working, that it's effective. The Schengen Zone is one example of a time when it's a multi speed Europe situation. Not everyone joined at the same time. The Eurozone is an obvious other example. So it's nothing particularly new, but I do think that there is more impatience among certain countries that really just want to get moving on competitiveness, to just go it alone.
C
And I mean, of course, you know, the, they're holed up in this castle. The, the villain storming the gate is, is Trump.
B
Yeah, they see Trump over one shoulder. That's certainly the case because we've seen what Trump did over Greenland, the threats there. But I would say that there's also a growing realization that China is something we need to focus on too. And of course we've been talking about years, but I think we do have a bit of a realization again now because there is a few things that are focusing minds. So for instance, you know, when you look at the trade stats previously we had countries in the EU who had a trade surplus and countries that had a trade deficit with China. Now we're at the point where no country, no EU country has a trade surplus with China. We've got Chinese electric vehicles coming into Europe now and taking really a large chunk of the European car industry. We talked about this yesterday as well. Certainly from the Commission's perspective, they would like that to be on the table as well.
C
Kind of refocusing on this, on this older threat that they were distracted from.
B
Exactly. All right, Sarah, now we're off to Luxembourg where we're going to be getting a pretty important opinion from the European Court of Justice's Advocate General today. And this is really a question of the Parliament versus the Commission. Right. It was the Parliament suing the Commission actually over Hungary.
C
Yeah. Basically, members of the European Parliament were angry because in December 2023, the Commission unfroze a chunk of money for Hungary just hours before a crucial summit where Viktor Orban dropped his veto on Ukrainian accession talks and on 50 billion euros in aid.
B
What a coincidence.
C
What a coincidence. That's. I mean, the MEPs do not believe in coincidences. They're angry that the Commission didn't hold Hungary accountable for its rule of law issues. And so they sued.
B
Yeah. But this is really a huge kind of exemplification of this battle between Parliament and Commission, because you've got the Commission kind of with the levers of power, really, in cases like this, and more broadly, they introduce the legislation, they're the ones who make these decisions on fining or not fining, as the case may be. And the European Parliament has long seen itself as like the elected house in Europe. They see themselves as accountable to their electorate and they campaign. They're a bit more political about that and they really use these sorts of examples of policy stuff to kind of score political points sometimes. But that being said, they've got a point. Right. I mean, this did seem kind of a quid pro quo. Yeah.
C
I mean, basically, the Parliament doesn't actually have that much power. The Commission does have power. It's the power of the purse. And there's incredible frustration among especially kind of a set of MEPs concerned about democracy, rule of law issues, that the Commission isn't using the power that it has to hold Orban accountable. But of course, people in the Commission know that if they do use their levers of power against Orban and start withholding funding, that just fuels his fire, his rhetoric against Brussels.
B
That's right. And what we're going to get today is an opinion from the Advocate General. And it's not legally binding, but it gives kind of an indication of the direction of travel. And the reason it's important is because we've got the Hungarian election coming up in April. You mentioned that Viktor Orban is very good at using anything like this to really fire up his electorate. It's kind of manna from heaven. And it's a bit of a win win either way, because if the Advocate General says, yeah, the Parliament is right and the Commission was wrong to have released that money to Hungary, he'll Take that back to his electorate and say, oh, look at these fat cats in Brussels, these Eurocrats. They're just trying to screw Hungary and Hungarians. If the Advocate General says, no, we side with the Commission on this one, then he'll be able to use that and say, you see Parliament as our enemy and the commission wrongly withheld the money in the first place. So it's kind of a gift for him.
C
Ultimately, Orban is an expert at. At spinning things in a way that work with his electorate. And he even did it. Did it the other day with a tweet where he name check Politico.
B
Yeah, it was quite a. An interesting thing to wake up to yesterday. Seems that Viktor Orban reads Politico religiously. He read the story that I wrote on Tuesday morning, which we covered in the podcast here, about the plan that the EU has to sort of take Ukraine into the club in 2027. Of course, he didn't present it that way. He accused us of being the Brusselian elite. I never knew I was elite. Sarah, did you know I'm elite?
C
I did, actually.
B
Thank you. He basically said that Brussels and Kiev are plotting to get Ukraine into the eu. His words were exactly. Open declaration of war against Hungary. It's all tied to the April election. It's one of those things where Orban will use these things. He twists them. He does what he needs to do for his election campaign, and that's what he did with this story. But, yeah, it was quite an interesting take from Victor.
C
All right, so let's move on to our final story, and gotta confess, I gotta go back to the castles. Our colleague Gerardo Fortuna has a piece on how EU leaders seem especially fond of meeting in castles whenever the conversations get difficult.
B
Sarah, you're from the U.S. not a lot of castles over there, except maybe Disney ones. What's your favorite?
C
I am a Florida girl, so I should be loyal to the Disney World ones. But yeah, my favorite one is Classbeek Castle. Good. It's spelled like gaspee is how I would pronounce it, but it's right outside of Brussels and it's a bit cheesy, but it's where my now fiance took me for our third date.
B
Well, that is super nice. My favorite castle is the Castle, which is Australia's greatest movie of all time, so listeners, please make sure you watch it well.
C
So, I mean, why are these leaders meeting up in castles?
B
Well, aside from the moats, which I think.
C
Keep out the riffraff.
B
Absolutely.
C
The journalists.
B
The journalists, exactly. I think there's something to be said about, you know, focusing the minds outside of the capitals. They're often not. Not in Brussels. You have to go out, see a different part of the country. Fewer journalists, fewer people around. You can just get together with your bezzies from around the European Council summit table and just kind of talk informally. So I think that's part of the appeal. We've seen it with other leaders as well. Macron invited leaders to Versailles after Russia attacked Ukraine in 2022. We had, you know, the infamous meeting in Bratislava at a Castle in September 2016 after the Brexit vote.
C
And, yeah, just at the national level. The Belgians are into using their castles. Famously. The Val Duchesse castle is often used for government negotiations.
B
Well, I look forward to seeing Olden Beeson later today, Sarah. All right, before we go, thank you all for your WhatsApp messages. Please keep them coming. Also, let us know what you think with the voice note. I'd love one of those. You'll find the number in our show notes. A quick shout out to a few people who've written in Enrique, who sent us his top karaoke pick. It's My Life by Bon Jovi, a classic. Another listener who wants to remain anonymous. We do that here. They reckon their best sing along is Tequila, which, you know, the great news about that, Sarah, is you don't have to remember too many lyrics.
C
In fact, I do not remember the lyrics to Tequila at all.
B
It's just Tequila. Sarah, what's your favorite karaoke song? We've already heard mine.
C
I am very proud of the moment when I led a group of political reporters at a Politico holiday party party in a rendition of Wonderwall by the great Oasis.
B
Well, back together again. And speaking of people who are back together again, Sarah, we've got a special shout out on the pod today. It's for Brussels lovers. If you've got a sweetie in town, you'd like to wish a happy Valentine's Day, too. Please let us know. Voice notes or text messages. But better yet, my favorite section, Sarah, in a newspaper, back when I was in Australia, they had the section for missed connection. So I really loved reading that. It would be like people walking down the street or sitting on the train and seeing someone who caught their eye. So I would love to hear from any of our listeners who may have a missed connection. Maybe a handsome brunette in some sort of tweed jacket strolling down Rue de la Loire holding the EU treaties has caught your eye.
C
Yeah. Or that secretly powerful EU civil servant that you saw shopping for groceries in the Chaussee de Waterloo Dales.
B
I want to hear them all. Please do send us your notes. And Sarah, you're going to be back with listeners tomorrow for a fresh episode of EU Confidential.
C
Yeah, indeed. We'll be doing a deep dive on what all this competitiveness talk is really about. And just frankly, what's going on with the EU economy.
B
Can't wait. I'm Zoya Shevdolovic, this is the Brussels Playbook podcast and we'll be back with you Monday.
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In this episode, POLITICO’s Zoya Sheftalovich and policy editor Sarah Wheaton dissect a pivotal informal EU leaders’ summit held at Alden Biesen Castle in Limburg. The discussion revolves around reviving Europe’s economy, ongoing institutional tensions—particularly between the European Parliament and the Commission over Hungary—and the symbolism of castle diplomacy in the EU. The episode illuminates the complexity of EU decision-making amidst international pressures and internal dysfunction.
Conversational, lightly irreverent, and informed by insider reporting. The hosts blend sharp analysis with personal anecdotes and playful banter—e.g., debates about their favorite castles and karaoke tracks—making complex EU politics accessible and engaging.
This episode encapsulates the EU’s current crossroads: grappling with structural challenges, the limits of consensus, and the ever-present shadow of external pressures. The Alden Biesen retreat symbolizes both the unity and dysfunction at the EU’s core, while the Hungary legal wrangle dramatizes ongoing institutional power struggles. Meanwhile, POLITICO’s team keeps the mood light with quips about castles, karaoke, and their alleged elite status.
Listen for insider context, candid perspectives, and a dash of playful EU wonkery—all in under 15 minutes.