Cyprus summit puts Middle East crisis and EU spending priorities in focus

Europe is facing a demanding security environment that requires a full-spectrum approach to peace and security.

That was the message from European Council President António Costa at the close of the informal summit of EU heads of state and government, held on 23 and 24 April in Cyprus. Hosted by President Nikos Christodoulides, first in Agia Napa and then in Nicosia, the meeting was also symbolic. For Cyprus, the conflict in the Middle East is not abstract. The choice of venue was intended to send a clear signal of unity and solidarity with the member states most exposed to the crisis.

Hormuz tops the agenda

The war has already had severe consequences for civilians, infrastructure and the global economy. The situation continues to deteriorate in the absence of a political settlement.

Recent ceasefires between the United States and Iran, and between Israel and Lebanon, were welcomed as positive steps. But EU leaders quickly shifted the emphasis to implementation and long-term stability. The Union is not a party to the conflict, but wants to contribute to a solution. For leaders, that means anchoring any settlement in international law.

Three priorities were outlined: restoring freedom of navigation in the Strait of Hormuz, securing a stable ceasefire that can lead to lasting peace, and preventing Iran from acquiring nuclear weapons. Diplomacy remains the EU’s preferred path, alongside efforts to stabilise global markets by restoring Gulf energy infrastructure.

Regional diplomacy intensifies

During the summit, EU leaders met representatives from Jordan, Lebanon, Syria, Egypt and the Gulf Cooperation Council.

Costa pointed to intensive diplomatic engagement since the early days of the conflict, including a video conference with regional leaders organised with Commission President Ursula von der Leyen, as well as recent visits to Saudi Arabia, the United Arab Emirates and Qatar.

In parallel, under French leadership and with the United Kingdom, a coalition of more than 50 countries is preparing a defensive mission to help restore navigation in Hormuz once conditions allow. Leaders also discussed how to make the EU’s mutual assistance clause more operational.

On Lebanon, concern remains high. Costa welcomed President Joseph Aoun’s decision to ban Hezbollah military activities, describing it as a historic step, and reiterated EU support for disarmament efforts and for ongoing talks between Lebanon and Israel.

Humanitarian and economic support for Beirut will continue. Costa also acknowledged progress in Syria following talks with President Ahmed al-Sharaa.

Energy shock and long-term budget

The economic fallout is increasingly visible. The conflict is pushing up fossil fuel prices, slowing growth, and putting pressure on households and businesses.

The Commission’s latest package was seen as an important step, with further action possible depending on developments. In the longer term, leaders argued that accelerating the energy transition and expanding domestic clean energy production remain the only viable way to reduce dependency and strengthen energy security.

The summit also addressed the next EU multiannual budget.

Leaders stressed the need to reach an agreement by the end of the year so the new framework can be operational from 2028. New own resources are expected to play a central role, alongside proposals from the European Parliament.

Discussions will resume in June, based on initial figures prepared by the Cypriot presidency. The central question remains whether the EU can match its ambitions with the resources needed to deliver them.

A broader test for Europe

The conclusion was clear: Europe is trying to position itself for a more hostile geopolitical environment.

That means continuing support for Ukraine, playing a more active role in Middle East diplomacy, protecting citizens and businesses from economic shocks, and preparing the foundations for a more ambitious EU budget.