Key facts
- The EU Commission is set to redistribute funding for Western Balkan candidate countries, favoring Montenegro, Albania, and North Macedonia.
- Ukraine's President Zelenskyy is pushing for accelerated EU accession talks amidst disputes with Poland and reservations from Hungary.
- Despite EU plans to phase out Russian natural gas, imports increased in early 2026.
- The EU's proposed budget of nearly €2 trillion prioritizes economic competitiveness and defense.
- Russia launched a significant missile and drone attack on Kyiv, resulting in casualties and widespread damage.
EU member states are converging for a crucial budget conference, marked by significant disagreements over spending priorities and the financing of the bloc's next long-term budget. The European Commission has proposed a budget of nearly €2 trillion, emphasizing economic competitiveness and defense while proposing cuts to agriculture and regional programs.
Disputes have emerged between member states advocating for increased agricultural funding and those pushing to reduce the overall budget size. A key point of contention is how the budget will be financed, with ongoing discussions about potential revenue sources.
Adding to the complexity, the European Commission is set to redistribute funding allocated to Western Balkan candidate countries under the Reform and Growth Facility. Frontrunners Montenegro, Albania, and North Macedonia are expected to receive more cash, while Bosnia and Herzegovina, Kosovo, and Serbia are likely to lose out due to reform implementation issues.
Ukraine's accession process is also a focal point, with President Volodymyr Zelenskyy urging for accelerated negotiations. However, accession talks face hurdles due to reservations from Hungary and a dispute with Poland. Zelenskyy expressed readiness to resolve the feud with Poland, emphasizing the mutual interest in Ukraine's swift EU membership.
In the energy sector, a report indicates that EU gas imports from Russia have increased in early 2026, contrary to the bloc's planned phase-out. Pipeline imports rose by 7% and LNG imports by 11% year-on-year, with LNG imports accelerating further after the March ban.
Meanwhile, Russia launched a large-scale missile and drone attack on Kyiv, killing at least ten people and injuring dozens more, causing significant damage to residential buildings and infrastructure. This attack occurred as Zelenskyy was visiting Ireland, prompting him to cut short his trip due to intelligence warnings.
On the diplomatic front, European Commissioner Valdis Dombrovskis is visiting Turkey to participate in the High-Level Economic Dialogue, aiming to boost investment ties and discuss the impact of geopolitical developments on both economies. The dialogue was restored after a suspension due to Turkey's past drilling activities in the Eastern Mediterranean.