European Union

Economy

The European Union engaged in significant internal debate over industrial policy, including proposals for a 'Made in Europe' preference and advancing a carbon border tax. Internationally, the bloc suspended ratification of a major trade deal with the United States following policy announcements from President Donald Trump and a relevant U.S. Supreme Court ruling. The European Commission, led by Ursula von der Leyen, also decided to provisionally apply the trade agreement with Mercosur, bypassing full parliamentary ratification.

Politics

Internal political tensions were high, primarily driven by Hungary's blockade of a new EU sanctions package against Russia and a €90 billion aid package for Ukraine. In response to these challenges, European Commission President Ursula von der Leyen proposed changes to EU decision-making, including a model for a 'two-speed Europe'. 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'.

Security

EU leaders proposed new measures to strengthen the bloc's independent military capabilities, calling for bringing the EU's mutual defense clause 'to life'. This occurred alongside a broad European debate on building more independent capabilities, fueled by the United States pushing its NATO allies to take greater responsibility for their own defense. The EU finalized a 90 billion euro loan for Ukraine, funded by joint EU debt, to support its finances until at least 2027.

Information

The European Union initiated a formal investigation into the online retailer Shein under the Digital Services Act and formally accused TikTok of violating EU digital rules over addictive design. Separately, the European Public Prosecutor's Office opened an investigation into the European Commission, with Belgian police conducting raids. The EU also formally warned Meta for blocking rival AI chatbots on WhatsApp, stating this could constitute an abuse of dominant market position.

Energy

Business leaders called on the EU to lower energy costs as the bloc's gas reserves reportedly fell to their lowest level since 2022. The EU proposed a new set of sanctions aimed at cutting Russia's oil and gas revenues, including measures to block ships carrying Russian oil. However, the bloc struggled to secure support for these restrictions and faced internal opposition, with Hungary filing a lawsuit against the EU's ban on Russian gas imports.

Humanitarian

The European Parliament approved a significant reform of the EU's asylum system, establishing an EU-wide list of 'safe countries' and enabling faster rejections and transfers. European Union officials maintained a focus on the humanitarian situation in Gaza, with an EU mission present to monitor operations at the recently reopened Rafah border crossing. Officials described the reopening as a positive yet slow process and urged for expanded access to facilitate greater aid delivery.