European Union in March 2026: the most important developments in economy
The European Union in March 2026 was dominated by energy prices after the conflict involving Iran. European gas prices rose sharply after the reported closure of the Strait of Hormuz and a halt in supplies from Qatar, and had doubled by 10 March. That day Commission President Ursula von der Leyen said the EU's earlier move away from nuclear power was a strategic mistake and announced a strategy to expand nuclear energy, with €200 million in guarantees for small reactors; Germany's government was sceptical. The Commission weighed a gas price cap and emergency measures, and EU leaders held a summit on the price spike on 19 March. By month end the EU had urged member states to lower gas storage targets, and Slovenia had become the first EU country to introduce fuel rationing.
The European Central Bank kept interest rates unchanged on 19 March and said the conflict posed a material risk to inflation through higher energy prices. President Christine Lagarde said later that the bank was prepared to raise rates at any meeting if needed. Markets expected increases from April.
Russian energy and Ukraine formed a second theme. Russian President Vladimir Putin said on 4 March that Russia could end gas supplies to the EU immediately. Hungary and Slovakia held up a €90 billion EU loan for Ukraine in a dispute over the Druzhba oil pipeline, which carries Russian oil. The EU offered to pay for repairs and Ukrainian President Volodymyr Zelensky accepted, saying the work would take about a month and a half, while Hungarian Prime Minister Viktor Orban said no EU money should go to Ukraine until oil flowed again. On 20 March the EU vowed to stop buying Russian gas and to find a way to provide the loan despite Hungary's veto. A 20th sanctions package stayed stalled and a proposed ban on Russian oil was delayed.
On trade, the EU and Australia signed a free trade agreement on 24 March that removes tariffs on 99% of goods traded. The EU-Mercosur agreement will apply provisionally from 1 May, and the European Parliament conditionally approved the trade deal with the United States on 26 March.
by WorldBrief & Maksim Micheliov | AI-generated summary
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