Informal EU leaders’ retreat of 12 February 2026 – Invitation letter by President António Costa to the members of the European Council
Dear colleagues,
I would like to invite you to an informal Leaders’ retreat, on the 12th of February, dedicated to strengthening the single market in a new geoeconomic context.
Last year I chose to dedicate an informal brainstorming of Leaders to Defence – that meeting provided a strong boost to the construction of a Europe of Defence. In 2026, I would like us to provide the same political impulse to the area of competitiveness.
In the current geopolitical environment, strengthening our Single Market is, more than ever, an urgent strategic imperative. The Single Market can be a powerful driver of simplification for citizens and companies alike. We need to do more to effectively reduce national barriers, and to make the regulatory framework – at all levels, including at European level – more conducive to investment, innovation and company growth. For instance, through the creation of a new 28th regime that can help companies scale up, including by reducing administrative burdens. Accelerating the work on a Savings and Investment Union, to better channel savings to productive investments in Europe, will also be a crucial component of this effort.
Beyond the need to deepen, harmonize and further integrate our Single Market, many of our companies in key sectors such as digital, telecommunications, capital markets and energy, lack the necessary scale to achieve the levels of investment and innovation needed in a global marketplace. In these cases, consolidation in the Single Market, allowing competitive firms across the EU to scale up, is necessary to successfully compete globally. This effort must always go together with ensuring the affordability and security of services to our citizens and industries.
Europe is open for trade. The European Union has rightly been advancing its trade diversification agenda, most recently with economic powerhouse India. But our openness should not be mistaken for weakness. Europe must both accelerate its ambitious trade agenda and defend its companies from unfair competition through focussed protection in strategic sectors. Rules that allow for European preference in some strategic areas, and a systematic approach to economic derisking, will have to be part of this equation.
I would like to organise our discussion around two main dimensions.
First, the geoeconomic context. How should the European Union position itself in a world of increased – and not always fair – economic competition and trade imbalances? How best to respond to economic coercion and to reduce economic dependencies, notably in areas like critical raw materials and technology? What opportunities does this challenging environment create for strengthening Europe’s strategic autonomy?
Second, our internal strategy and policies. What should be our main priorities to deepen and complete the Single Market? How can our companies reach the right scale in the Single Market to boost investment and innovation in key sectors? How can we provide businesses with a more favourable regulatory environment and how can a 28th regime for company establishment and operation contribute to this goal? How best to increase our resilience against economic dependencies and protect our companies from unfair competition?
I have invited Mario Draghi and Enrico Letta to join us to share their visions about European competitiveness and how they have evolved since the publication of their two groundbreaking reports.
Regarding the choreography of the day, we will start our meeting at 10h30 with an exchange of views with the President of the European Parliament. We will then discuss with Mario Draghi the impact of the new geopolitical and geoeconomic environment on the EU’s competitiveness, followed by a lunch at 27 with the same focus.
In the afternoon we will first have an exchange with Enrico Letta on how to leverage the potential of our Single Market in a fast-changing world. In the final working session at 27, which should conclude by 18h30, we will concentrate on how to make use and develop the tools and policies at our disposal, including the Single Market, to reinforce the EU’s competitiveness.
I intend to reflect these informal discussions in the preparations and outcome of the formal European Council in March.
I look forward to our discussions on 12 February, in the Alden Biesen castle.
