BILZEN-HOESELT, Belgium — Leaders of the 27-member European Union gathered Thursday at the historic 16th-century Alden Biesen castle in Belgium as the bloc confronts mounting geopolitical and economic pressures from Russia, China, and U.S. President Donald Trump.

The high-level meeting comes at a critical juncture for the EU, which is reassessing its diplomatic, economic, and security strategies amid shifting global dynamics marked by trade tensions, military threats, and intensifying competition.

“We all know we must change course, and we all know the direction,” Belgian Prime Minister Bart De Wever said ahead of the talks. “Yet it sometimes feels like we’re standing on the bridge of the ship staring at the horizon without being able to touch the helm.”

French President Emmanuel Macron and German Chancellor Friedrich Merz made a symbolic joint arrival, crossing the castle’s drawbridge side by side, a gesture underscoring unity between the EU’s two traditional powerhouses despite notable policy differences.

“We share this sense of urgency that Europe must take action,” Macron said as he stood alongside Merz on a blue welcome carpet.

The session is designed to shape the agenda for a broader EU summit scheduled for late March, where leaders are expected to outline more concrete policy responses.

Merz and Italian Prime Minister Giorgia Meloni are leading calls for deregulation, strengthening the EU’s single market, improving relations with Washington, and pursuing expanded trade agreements, including the recent Mercosur deal with South American nations.

“We want to make this European Union faster, we want to make it better, and above all we want to ensure that we have competitive industry in Europe,” Merz said.

In contrast, Macron continues to champion “strategic autonomy,” a vision of a Europe less dependent on the United States, particularly in defense and industrial policy. He has urged EU nations to prioritize purchasing from European manufacturers as military spending increases in response to Russia’s war in Ukraine.

Merz and Meloni, however, argue that procurement should remain open to both European and foreign firms.

Macron also warned of intensified global competition and economic coercion.

“There is also an increased pressure on us, with competition sometimes unfair competition — that is very intense, with very strong pressure from China, tariffs imposed on us by the Americans with threats of coercive practices,” he said.

Leaders are expected to debate new financial mechanisms to shield the bloc from volatility in the global trading system, particularly as Trump’s sweeping tariffs and China’s restrictions on critical mineral exports reshape supply chains.

Macron renewed his proposal for joint EU borrowing, describing it as “Eurobonds for the future” that could offer an opportunity “to challenge the hegemony of the dollar.”

Meanwhile, many EU officials support elements of a 2024 economic strategy proposed by former European Central Bank President Mario Draghi. The plan calls for cutting regulatory barriers, boosting infrastructure investments, and expanding trade partnerships. Draghi is scheduled to address leaders during the gathering.

“We have way too many barriers that prevent money and capital from moving from one country to another, way too many obstacles to simplification,” said Roberta Metsola, President of the European Parliament. “No more words, but more action.”

Germany and Italy are expected to push for streamlined regulations, a strengthened single market, and an “ambitious trade policy based on shared rules and a level playing field.”

European Commission President Ursula von der Leyen emphasized the economic dimension of geopolitical strength.

“Our power on the global stage depends greatly on our strength on the economic front,” she said in a speech Wednesday.

According to the latest Eurobarometer survey, citizens across the bloc are calling for a more unified and assertive EU leadership in response to military threats, economic strain, and climate instability.

“There has never been a better time for European leaders, national political leaders, to actually leverage on these European citizens’ demand for greater European action,” said Alberto Alemanno, a professor of EU law at HEC Paris.

As leaders deliberate inside the castle walls, the outcome of their discussions may determine how effectively the European Union navigates an increasingly volatile global landscape.