EU leaders will gather in Brussels on Thursday for two days to address some of the major economic challenges facing the Union. One of the main topics of this summit will be the increasing competition with China.
Heated Debates About the Union Budget
At this summit, heated discussions are expected regarding the Union's budget for the years 2028 to 2034; a topic that is always accompanied by divisions between donor countries and recipient countries. On Friday, the leaders will also discuss further support for Ukraine, where Volodymyr Zelensky, the President of Ukraine, will be present.
Trade Challenges with China
During this summit, EU leaders will explore strategies to reduce the massive trade deficit with China, which reached 360 billion euros ($400.4 billion) last year and is expected to increase this year as well. This meeting comes less than a week after the European Commission's agreement with Beijing to limit imports of hybrid vehicles from China.
The EU has accused China of unfair economic practices, stating that its government subsidies to its industries have created an uneven playing field. Industry groups have also noted that the increase in imports from China has led to the closure of more factories within the Union.
Before this summit, Olaf Scholz, the Chancellor of Germany, and Emmanuel Macron, the President of France, called for new measures from the EU to counter any actions that distort the market. Additionally, leaders will address high energy prices in the Union as another factor affecting its competitiveness.
The upcoming seven-year budget of the Union from 2028 to 2034 will also be a contentious issue, especially considering a special meeting scheduled for November to reach an agreement on this matter. Discussions over this budget, which requires unanimous approval, are usually intense and contentious, involving divisions between wealthy countries and those dependent on the Union's solidarity funds.
Although it is expected that negotiations at this summit will not reach a specific outcome, leaders hope to achieve an agreement by the end of the year. Pressure to finalize this budget is increasing as elections approach in several member countries, which could make it more challenging to reach an acceptable agreement for all.
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