EU Summit in troubled times: Ukraine, Middle East, trade tensions

EU Leaders met in Brussels for a Summit dominated by geoeconomic challenges and the latest developments on the conflicts in Ukraine and Middle East. The EU showed unity on several topics, including stepping up efforts on defence and review of the relationship with Israel. While acknowledging their support for Ukraine, EU Leaders failed to find unanimity on a new package of sanctions towards Russia.

Ukraine

Ukrainian President Volodymyr Zelenskyy addressed EU leaders remotely, calling for continued military and financial assistance. The Council reiterated its support which has already accounted for almost €159 billion in aid to Ukraine. Finally, Member States decided to extend the current sanctions regime due to the the lack of unanimity for increasing pressure on Moscow.

Middle East

The Council debated the situation in the Middle East, with EU Leaders issuing a joint call for an “immediate and sustainable ceasefire” in Gaza, demanding the unconditional release of hostages, and emphasizing the need for humanitarian access. Member States also took note of a report assessing Israel’s compliance with the EU-Israel Association Agreement, which requires adherence to democratic and human rights standards. A review of the agreement will follow in July, potentially redefining EU-Israel relations.

Defence

Following up on the Foreign Affairs Council and the NATO Summit, EU Leaders endorsed ambitious plans to strengthen the EU’s military-industrial base. Central to this is the proposed Strategic Autonomy and European Facility for Defence (SAFE), a €150 billion initiative aimed at joint procurement and industrial scaling.

The Council also reinforced cooperation with NATO, positioning EU defence efforts as complementary to the alliance, rather than a replacement. A key objective is to ensure the EU is militarily “ready by 2030” to respond to threats independently if necessary.

Trade and Competitiveness: Bracing for U.S. Tariffs

Another flashpoint was transatlantic trade. While negotiators are working to strike a deal before July 9, “all options remain on the table”, including a late proposal by European Commission President Ursula von der Leyen to set-up a new forum with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership bloc (CPTPP). Still, the agreement with President Trump remains the best-case scenario.

Migration and Enlargement

Migration policy remains divisive. Germany and several northern states pushed for stricter, EU-wide enforcement and return policies, while Hungary continued to oppose binding mechanisms. Despite this, the Pact on Migration and Asylum, adopted earlier this year, remains the legal framework moving forward.

On enlargement, the EU reaffirmed its commitment to Ukraine, Moldova, and the Western Balkans. While no new timelines were offered, the Council emphasized a “merit-based, reversible” approach to accession.