The intergovernmental summit in Rome on January 23, 2026, marked a definitive shift in European power geometry, as Prime Minister Giorgia Meloni and Chancellor Friedrich Merz signed an expansive „Action Plan“ to institutionalize cooperation between the EU’s two largest manufacturing powers. Beyond the symbolic, the leaders formalized a Security, Defense, and Resilience Agreement that explicitly links political coordination to industrial output—consolidating partnerships like the Leonardo-Rheinmetall land systems alliance. By submitting a joint „non-paper“ to the European Commission ahead of the February 12 Leaders’ Retreat, Rome and Berlin have effectively seized the initiative on EU competitiveness, advocating for an „Omnibus“ permitting initiative and a „clean sweep“ of so-called „zombie“ regulations. This partnership represents more than bilateralism; it is a pragmatic „pro-industry“ front designed to anchor the Single Market against intensifying pressure from the United States and China.
Although this axis offers a revitalized „motor“ at a time when the traditional Franco-German engine is stalled by domestic instability in Paris, this rapprochement is not without its risks. Critically, the partnership is grounded in a shared skepticism toward the EU’s regulatory „overreach,“ particularly elements of the Green Deal that both leaders argue have hollowed out the automotive sector. This „realist“ turn toward deregulation and national industrial interests may streamline growth for manufacturing heavyweights, but it risks alienating member states committed to ambitious climate timelines or those who fear a return to a „Directorate“ of large powers. Furthermore, the reliance on a personal rapport between the center-right Merz and the conservative Meloni suggests a vulnerability: if this axis is perceived as an ideological alternative to Brussels rather than a supplement, it could deepen the very fragmentation it seeks to solve, trading universal EU standards for a minilateralism of the powerful.
Read the full report on the Decode39 website.