EU leaders unite on Ukraine but clash over budget and trade reforms

European leaders gathered for a summit where the conflict in Ukraine took centre stage. Ukrainian President Volodymyr Zelenskyy provided a direct update on the military situation, underscoring its significance for the bloc. The meeting also addressed economic and trade priorities, with key decisions shaping the EU’s future direction. The summit began with a focus on Ukraine, as Zelenskyy briefed leaders on the ongoing military developments. The EU reaffirmed its position, stating it is not a neutral party in the conflict and remains firmly supportive of Ukraine. Any future negotiations, it was agreed, would require Russia to first demonstrate a genuine willingness to engage in talks.

Economic concerns were high on the agenda. Member states identified competitiveness as a top priority, aiming to reduce bureaucratic hurdles for businesses and citizens. Leaders also agreed to strengthen protections against market-distorting practices from external economic regions, with particular attention on China.

The European Commission received two clear mandates: to robustly represent the EU’s interests in trade negotiations and to enhance trade defence mechanisms. Additionally, the Commission will now submit progress reports on reform implementation before each European Council meeting.

Discussions on the Multiannual Financial Framework (MFF) revealed divisions. Friedrich Merz dismissed the current proposal as unaffordable and unbalanced. Germany, alongside other net contributors, firmly opposed the inclusion of joint EU debt in the framework. The Irish Council presidency is now tasked with presenting a revised, sustainable MFF proposal that all member states can accept.

The European Council also planned an in-depth discussion on EU enlargement policy for October, with a specific focus on the Western Balkans. The summit concluded with clear positions on Ukraine, trade, and economic reform. The EU confirmed its stance on the conflict and set concrete steps to bolster its economic resilience. Leaders will reconvene in October to address enlargement, while the Commission prepares to report on ongoing reforms.