EU

European industries face significant challenges amid the upcoming Trump-Xi summit, with concerns that a potential US-China deal could prioritise American access to rare earths, leaving Europe vulnerable. As critical supply chains are manipulated, Brussels prepares for potential economic fallout and intensified competition with cheaper Chinese products.

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The European Commission is sending a high-level delegation to Budapest next week to assess Hungary’s progress in unlocking €10 billion in EU recovery funds. Following a change in government, Budapest faces a tight deadline to meet conditions related to rule of law and anti-corruption reforms by August.

Estonian Defence Minister Hanno Pevkur emphasised the need for accountability in the EU’s €90 billion loan to Ukraine, amidst an investigation into graft allegations involving a former Zelenskyy aide. Pevkur highlighted that Ukraine must demonstrate responsible fund usage to secure ongoing support from both Ukrainians and Europeans.

EUROPE MORNING BRIEFING

This morning, European Union leaders convene in Brussels to discuss the ongoing conflict in the Middle East, energy crises, and Hungary’s veto on financial support for Ukraine.
Former US official John Bolton criticises the EU’s approach to the Iran situation.

EUROPE MORNING BRIEFING

Humanitarian funding continues to decline, with Germany and Sweden announcing significant budget cuts this morning. The EU’s negotiations for its 2028-2034 budget will see a proposed 75% increase in development aid dedicated to Ukraine and other candidate countries.

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