Key facts
- EU leaders are meeting for a two-day summit in Brussels.
- Key agenda items include the war in Ukraine, economic competition with China, and the bloc's €2 trillion budget.
- The summit will also address the Middle East conflict, migration, and defense.
- European Commission President Ursula von der Leyen seeks backing for investigations into alleged Chinese trade practices.
- Discussions will focus on reviving the EU's single market and improving competitiveness.
- EU leaders will negotiate the size of the bloc's next seven-year budget, with some countries pushing for larger cuts.
European leaders are gathering in Brussels for a two-day summit that will tackle a wide array of pressing issues, including the ongoing war in Ukraine, escalating tensions with China, and the bloc's substantial multi-year budget. The agenda also encompasses the conflict in the Middle East, challenges posed by migration, defense capabilities, and the narcotics trade.
European Commission President Ursula von der Leyen is spearheading an effort to adopt a more assertive stance against what she describes as unfair Chinese trade practices. This includes seeking political backing to investigate alleged dumping of cheap products and considering an 'overcapacity instrument' to counter state-subsidized firms. However, there is a prevailing sentiment among EU diplomats and officials that a full-blown trade war is undesirable, given the EU's significant reliance on China as an export market and its need for Chinese raw materials.
Beyond external trade relations, the summit will also focus on internal competitiveness. Leaders are set to discuss a plan to revitalize the EU's single market, aiming to streamline regulations on company formation, public procurement, and worker mobility. This discussion is also an opportunity for member states to voice concerns about existing EU rules, such as the Emissions Trading System, which they argue hinder business competitiveness, particularly in light of high energy prices and competition from China.
Financially, the upcoming seven-year EU budget will be a central point of negotiation. Following a proposal for a 2% cut to the European Commission's €2 trillion budget by the Cypriot presidency, countries like Germany and the Netherlands are expected to advocate for more significant reductions. Conversely, recipient nations such as Poland, Portugal, and Bulgaria are likely to support the current proposal, particularly its protection of agricultural and regional spending. The urgency to finalize these negotiations is heightened by the approaching French presidential election, where front-runner Jordan Bardella has indicated his intention to challenge the budget and France's contribution.