00:00French President Emmanuel Macron and German Chancellor Friedrich Merz talk as they walk
00:05the grounds of a Belgian castle.
00:07They're here for what's being called an informal EU leaders' retreat.
00:11However informal it may be, all the talk is about matters of grave importance for the
00:16Union's future amid a rift with Washington, economic pressure from China, and a hybrid
00:21threat from Russia.
00:23At this meeting, competitiveness is the word of the day, with talks centered on boosting
00:27European businesses in the world.
00:30Today's our retreat is on competitiveness.
00:33We have a clear priority to strengthen economic growth in Europe.
00:39That is essential to our prosperity, to create quality jobs, and to sustain our economic social
00:49model.
00:50The leaders here agreed on a plan of action to be unveiled in March.
00:54It deals with financial integration, improving energy grids, and loosening regulations to
01:00help EU firms grow.
01:01But that's just a broad plan.
01:03There are splits within the bloc when it comes to the details.
01:07Germany and France are particularly at odds.
01:11Germany's Chancellor Merz is among those who want a reset in ties with Washington, and for
01:16further trade deals beyond the US.
01:18France wants to cut dependence on Washington, and for Europe to buy European.
01:22Then there's the matter of what Francis Macron has called euro bonds for the future, a joint
01:28borrowing scheme he thinks could let the euro challenge the US dollar.
01:31So we have to, I would say, let's be cool on that.
01:37We know perfectly this choreography on euro bonds that all the others jump on the idea.
01:43What is clear is that we need more innovation.
01:46We need more investment for innovation.
01:47So we have to finance it.
01:49And part of it will be financed by public money.
01:52So it's part of the technicalities.
01:54For Germany's Chancellor Merz, though, the idea's a non-starter.
02:00I don't want to do so, but even if I was in favor of it, I couldn't.
02:04Because the federal constitutional court has made it very clear that there are strict limits
02:08to what the German government can do in that regard.
02:11Divisions like these aren't new.
02:13But quickly changing times have created a sense of urgency towards forging a united strategy
02:18that hadn't been there before.
02:20So what is needed, less discussions, more commitment and actions.
02:26We have been discussing so long time and I think this is the time to take the decisions.
02:34Because the time is precious and the time is running out.
02:39Though the meeting has not produced any firm decisions, it shows the EU working on securing
02:44its place in a shifting world order.
02:46And not all leaders feel the emerging splits about exactly how to do it are insurmountable.
02:52It is a necessity to reach agreements.
02:57We know that there are differences between the French and the German approaches, that our
03:02market should be protected and I think everybody agrees on this.
03:06The question is how to achieve this and we must reach compromises.
03:11I am a pragmatic man and I do believe that both sides can be reconciled.
03:15In a few weeks time, the world will see what these leaders have agreed on so far and what
03:21still needs settling as the EU tries to carve a space of its own among the world's two largest
03:26economies.
03:26countries.
03:27Patrick Chen and John Van Triest for Taiwan Plus.
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