Ukraine loans, climate targets and China’s curbs expected to dominate EU summit

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The European Union’s 27 leaders are gearing up for a high-voltage summit in Brussels, packed with topics on Ukraine, climate goals and China, all of which could lead to tough negotiations and delicate compromises.

Thursday’s daylong meeting will also include defense posture, competitiveness, the Middle East, irregular migration and, for the first time, the housing crisis.

Ukrainian President Volodymyr Zelenskiy plans to attend the rally in person to appeal for political support for his strategy and new support for the military, which is dangerously short after US President Donald Trump cut off all funding.

President Trump’s expected diplomacy will weigh heavily on the talks. head and head Meeting with Russian President Vladimir Putin in Budapest Postponed indefinitelyurges Europeans to Ranking close to Kyivand reaffirm their position.

On Tuesday, a group of European leaders called for a ceasefire on “current” fronts, which President Trump said he supported but which Putin rejected outright.

“We remain committed to the principle that borders must not be changed by force,” they said in a statement.

As is the current tradition, the joint conclusions on Ukraine will only be approved by the 26 member states as a result of the highly publicized Hungarian disagreement. However, Hungary is not expected to take center stage on Thursday, with Prime Minister Viktor Orbán expected to arrive in the late afternoon due to the public holiday.

Instead, the main focus will be on Belgium.

Heads of state and government will try to use Russia’s inactive assets to allay Belgium’s concerns about its bold plan to issue a national security treaty. 140 billion euros of interest-free loans He called on Ukraine to close its budget deficit and provide reliable military support.

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Belgium is particularly involved in this landmark project, as the majority of Russian assets are held at Euroclear, a central securities depository based in Brussels.

The country’s Prime Minister, Mr. Bart de Weber,asked This is to ensure “the maximum amount” of legal certainty, solidarity and accountability, so that potential risks such as Moscow’s retaliation can be appropriately shared among all member states. Mr de Wever also called for “transparency” to identify the location of Russian sovereign assets held in other jurisdictions.

“I don’t think this is an unreasonable position,” he said earlier this month.

Diplomats and officials acknowledge that Belgium has a legitimate interest and hope that Mr. de Wever will eventually agree to order the European Commission to draw up legal proposals so that Kiev can start receiving funds within the next year.

The talks will consider how to ensure that Ukraine’s military purchases based on loans benefit European industry, a key goal for France. In contrast, some companies prefer to prioritize immediacy of production and supply, regardless of country of origin.

“The purpose of this loan is to keep Ukraine in the fight,” a senior diplomat said. “It would be even better if we could use that loan in Europe.”

fight against climate change

Another headline-grabbing topic on Thursday will be climate policy, which is facing increasing opposition from conservative leaders such as Germany’s Friedrich Merz, Italy’s Giorgia Meloni and Poland’s Donald Tusk. They all share a distaste for an environmental protection law that would effectively ban new sales of internal combustion engine cars by 2035.

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“If I’m involved, there won’t be such a severe policy cutoff in 2035,” Merz told the auto sector this month. “I will do everything in my power to achieve this.”

Even liberals like France’s Emmanuel Macron are questioning it. The French president has called on leaders to discuss face-to-face the need to set 2040 emissions reduction targets by mid-century as a bridge to climate neutrality.

The European Commission has already proposed a 90% cut by 2040, but would give governments and industry some flexibility. Approval of the document faces difficulties amid a deepening political backlash against environmental regulations.

Another point of friction is the new Emissions trading system (ETS) sets a price on CO2 emitted by buildings and road traffic. Some countries want a comprehensive review of the system, which is due to come into force in 2027, or a complete scrapping.

Amid growing discontent, Thursday’s deal risks descending into a bitter clash over the Green Deal, a key legacy of Ursula von der Leyen’s first mandate.

Ahead of the summit, the European Commission President sent a letter to 27 countries making several commitments to harmonize and simplify environmental regulations, including accelerating the review of the 2035 ban that could pave the way for the use of electronic fuels.

But von der Leyen also stressed the need to “stay the course” on climate ambition.

“If a robust, resilient, sustainable and innovative economy is our goal, dogmatically clinging to existing business models, no matter their past successes, is not the solution,” she wrote in the letter.

Although not officially on the agenda, China will inevitably be on the agenda as well.

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The Chinese government’s decision to reimpose and extend wide-ranging restrictions on rare earths, which are vital to the defense and technology sectors, has upset European countries and their citizens. provoked call Germany, France and Poland called for a tougher stance.

But member states remain sharply divided over how to deal with China, worried that escalation with the Asian giant could deal a major blow to Europe’s economy, which is still reeling from the painful effects of President Trump’s tariffs.

This means the prospect of invoking the bloc’s most powerful trade tool, anti-coercive measures, remains a remote idea for now.

This article has been updated.

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