EU

Paris Saint-Germain successfully defended their Champions League title by defeating Arsenal in Budapest, winning 4-2 on penalties after a 1–1 draw. Ousmane Dembélé equalised from the spot, cancelling out Kai Havertz’s early goal. This marks PSG’s second consecutive triumph in Europe’s premier club competition.

Ireland’s Foreign Minister Helen McEntee warned that granting “associate membership” to Ukraine could hinder its EU accession momentum, risking a two-tier membership approach. This follows German Chancellor Friedrich Merz’s proposal aimed at overcoming a two-year stalemate in Ukraine’s EU bid.

The European Commission has downgraded its 2026 growth forecast for the EU economy to 1.1%, citing increased energy prices due to the Middle Eastern conflict. The eurozone outlook fell to 0.9%, reflecting risks from global energy market disruptions and escalating inflation, now expected to reach 3.1%.

Concerns about Europe’s security strategy intensify amid ongoing debates in the European Parliament over military spending. MEPs Lukas Mandl and Marc Botenga expressed starkly opposing views on investing billions in defence amidst geopolitical tensions, particularly Russia’s actions in Ukraine, highlighting Europe’s shifting military priorities.

Lithuania’s capital Vilnius was temporarily shut down due to a potential drone incursion on Wednesday, reflecting heightened tensions along NATO’s eastern flank amid ongoing conflicts. The incident prompted airport closures and evacuations of key government figures, as well as strong condemnations from European leaders regarding Russia’s actions.

The European Commission has retained its carbon border tax in a new plan for fertilisers, aimed at supporting farmers despite rising costs linked to carbon pricing. Commissioner Christophe Hansen stated the importance of maintaining competitiveness against cheaper imports while acknowledging the financial pressure on agriculture and food prices.

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