European Union: Politics

Domestic

The European Public Prosecutor's Office conducted a raid on European Commission premises in Brussels as part of an investigation into the sale of EU-owned buildings. Separately, internal political tensions were high, primarily driven by Hungary's actions. Hungary is blocking a new package of EU sanctions against Russia and a €90 billion aid package for Ukraine. In response to these and other challenges, European Commission President Ursula von der Leyen has proposed changes to how the EU makes decisions, including a model for a 'two-speed Europe'. Concurrently, the EU is facing internal pressure to withhold billions in funding from Hungary, with a top EU court official advising that a €10.2 billion payment to the country should be annulled.

International

Hungary's blockade of Ukraine aid and sanctions dominated the EU's external relations. Hungarian Prime Minister Viktor Orbán escalated his conflict with the bloc, calling Brussels a greater threat than Russia and framing Ukraine's EU bid as a 'declaration of war'. European leaders, including French President Emmanuel Macron and German Chancellor Friedrich Merz, publicly grappled with the future of transatlantic relations under a potential second Trump administration, with Macron warning Europe must build its own strength to avoid being 'swept away'. On Ukraine's membership, EU foreign policy chief Kaja Kallas stated member states are not ready to give a fixed accession date, despite some leaders suggesting 2027. In a separate development, Iran officially designated the armies of EU member states as terrorist organizations, a reciprocal response to the EU's listing of Iran's Islamic Revolutionary Guard Corps.