European Union

Wednesday, 9 July

Source : © European Union, 2025 - EP

Written by Ralf Drachenberg and Rebecca Zamponi.

Staying true to his commitment, European Council President António Costa once more concluded the June European Council meeting within a single calendar day. Costa said that EU leaders focused on ‘how to ensure a strong position for the European Union on the global stage’, notably by discussing in detail defence, the war in Ukraine, the Middle East, and competitiveness. EU leaders also adopted conclusions on other topics, notably migration, internal security, hybrid activities, preparedness, the rules-based international order and external relations.  

General

The European Council again had new members, with German Chancellor Friedrich Merz and Romanian President Nicusor Dan joining for the first time. As is customary, the President of the European Parliament, Roberta Metsola, opened the meeting. She also raised, as she often does, issues which were not on the European Council’s agenda – this time, the preparations for the next multiannual financial framework, the simplification agenda, and the EU Electoral Act.

At the start of the meeting, the European Council marked the 40th anniversary of the signature of the Schengen Agreement and celebrated the signing by Spain and Portugal of their Accession Treaties 40 years ago, the accession of Austria, Finland and Sweden 30 years ago, and the signing of the Accession Treaties by Bulgaria and Romania 20 years ago.

European Council meeting Ukraine

Described as the ‘new normal’, the conclusions on Ukraine were again ‘firmly supported’ by 26 of the 27 Member States, with Hungary being the only country, for the third consecutive time, not to agree to the Ukraine conclusions. EU leaders agreed to the renewal of existing sanctions without discussion, according to Belgian Prime Minister Bart De Wever (Coreper approved the renewal of sanctions the following day). However, they did not reach an agreement on the 18th package of sanctions (reportedly due to being blocked by Hungary and Slovakia), but did mention that future sanctions packages could target Russian energy revenues.

The European Council reiterated its support for Ukraine’s independence, sovereignty and territorial integrity, as well as for a just and lasting peace. Taking into account the ‘peace through strength’ approach, EU leaders committed to continuing their ‘comprehensive political, financial, economic, humanitarian, military and diplomatic support’ to Ukraine, alongside international partners. Air defence, anti-drone systems and large calibre ammunition were identified as particularly pressing in the context of Member State support for Ukraine’s military and defence needs.

EU leaders welcomed the upcoming Ukraine Recovery Conference, taking place in Rome on 10‑11 July 2025. They also reiterated their support for Ukraine’s EU path and commended the pace of its accession-related reforms. The Council was invited to take the next steps in the accession process in line with the merit-based approach.

The European Council condemned Russia’s ceaseless attacks on civilians and civilian infrastructure. A recent United Nations report showed that there has been a significant rise in civilian casualties and human rights violations in Ukraine, notably the widespread and systematic use of torture and ill-treatment of prisoners in facilities managed by Russia. EU leaders praised the readiness shown by Ukraine to work towards a ceasefire and directly called on Russia to show genuine political will to end the war, agree to a ceasefire and engage in meaningful negotiations. They also emphasised the importance of efforts to exchange prisoners of war, release civilians, and return abducted Ukrainian children and civilians.

Main message of the EP President: The EU must remain strong in its support for Ukraine, and she called for the EU to ‘wean itself off Russian energy imports’.

Middle East

EU leaders reiterated their calls for an immediate ceasefire and the unconditional release of all hostages, leading to an end to hostilities. Furthermore, they ‘deplored’ Hamas’s refusal to return remaining hostages – according to reports, there are 53 hostages still held by Hamas. While calling for further restrictive measures against Hamas, the European Council reaffirmed its commitment to a lasting and sustainable peace based on the two-state solution. It also reiterated the EU’s continuing support for the Palestinian Authority and its reform agenda.

The European Council deplored the humanitarian situation in Gaza, noting in particular the ‘unacceptable’ number of civilian deaths and the levels of starvation (according to the World Food Programme, 100 % of people in Gaza face acute food insecurity and approximately 470 000 of those are facing catastrophic hunger). EU leaders called on Israel to comply with its obligations under international law and to allow unimpeded access of humanitarian assistance throughout Gaza. They also reiterated the importance of ensuring the protection of civilians, including humanitarian workers and civilian infrastructure. The World Health Organization has noted that the health system in Gaza is at breaking point, with 697 attacks on healthcare facilities in Gaza since October 2023 and 94 % of hospitals in the Gaza Strip damaged or destroyed.

Recalling previous conclusions, the European Council also condemned the escalation in the West Bank (specifically settler violence, the expansion of illegal settlements and Israel’s military operation) and called on the Council to make progress on further restrictive measures against extremist settlers and those that support them. An issue identified in advance of the meeting was the European Council’s response to the report on Israel’s compliance with Article 2 of the EU-Israel Association Agreement and calls by some Member States for a review of the agreement. At the doorstep, Spanish Prime Minister Pedro Sánchez stated that he would push for the suspension of the association agreement due to Israel’s violation of Article 2. In the end, the European Council just invited the Council to follow-up on the issue at its July meeting.

The European Council welcomed the cessation of hostilities in the Middle East (initially between Israel and Iran, and later with US involvement) and called for all parties to show restraint and abide by international law. EU leaders reiterated that Iran must never be allowed to acquire a nuclear weapon. They welcomed the recent further lifting of economic sanctions against Syria, and recalled the importance of a peaceful and inclusive transition. EU leaders also condemned the terrorist attack at the Mar Elias Greek Orthodox Church in Damascus, calling for those responsible to be held accountable. Reports state that the terrorist was linked to the jihadist group Islamic State. Leaders reiterated the EU’s support for the Lebanese people, and the state’s sovereignty and territorial integrity, and called for full implementation of the November 2024 ceasefire agreement.

Main message of the EP President: The EU needs to have a coherent and united front in its approach to the Middle East.

European defence

A few days before the European Counci metingl, NATO members met in The Hague and committed to investing 5 % of gross domestic product (GDP) annually in core defence requirements and defence- and security-related spending by 2035. The increase in defence spending to 5 % of GDP had previously been discussed by EU leaders at the informal European Council retreat on defence in February 2025. With 23 of 27 EU Member States being members of NATO, it is unsurprising that the NATO meeting fed into European Council discussions on defence. In their press conference, Presidents Costa and von der Leyen stated that the EU would help Member States reach the 5 % target. EU leaders agreed to return to the issue of defence at their October 2025 meeting, and tasked the Commission and the High Representative to present a roadmap on defence readiness.

EU leaders highlighted the importance of working with partners on security and foreign policy goals, and in this context welcomed the recent Security and Defence Partnerships with the UK and Canada. They also welcomed the adoption of the Regulation establishing the Security Action for Europe and the upcoming activation of national escape clauses under the Stability and Growth Pact. The European Council asked the co-legislators to quickly examine the proposal on defence-related investments in the EU budget and to progress on the proposal to address security and defence challenges in the context of the mid-term review of cohesion policy.

Main message of the EP President: European security is about much more than just defence.

Competitiveness

Considering the growing uncertainty and tensions in global affairs, the agenda items ‘EU in the world’ and ‘competitiveness’ were closely interlinked at the June meeting. Building on the 20 March conclusions, EU leaders reflected on competitiveness in light of the latest economic developments and key economic figures, which envisage moderate growth for the EU in the near future.

Trade was not mentioned in the invitation letter or the conclusions, but it was still discussed. President von der Leyen presented the EU leaders during dinner with different trade policy options, and identified joining forces with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as being the most attractive one. This might help to reform the WTO, for which the European Council has been calling for some time. Furthermore, the 9 July deadline for the entry into effect of the US’s 50 % tariffs is soon approaching. The EU and the US are currently negotiating, and EU leaders have different views on the process. Chancellor Merz would prefer ‘a quick and simple deal’, while French President Emmanuel Macron has taken a more cautious approach.

The role of the single market, a key component in achieving improved competitiveness, was mentioned several times in the conclusions. EU leaders notably ‘reaffirm the commitment to the objectives of the Single Market and reiterate their calls to remove remaining barriers, in particular in the areas of services and goods, including essential goods, to overcome fragmentation, to prevent new barriers and to improve the application and enforcement of Single Market rules’. As expected, the European Council endorsed the new single market strategy, originally requested by them in April 2024, and also the EU start-up and scale-up strategy. EU leaders highlighted the challenges faced by traditional industries, mentioning specifically i) automotive, ii) shipping, iii) aviation, and iv) energy-intensive industries, such as steel, metals and chemicals.

The international role of the euro was also on the agenda, after European Central Bank (ECB) President Christine Lagarde recently argued that this is ‘Europe’s global euro moment’. It is worth noting that issues such as the role of the euro are usually discussed at Euro Summits, as was the case in March 2025, rather than European Council meetings. EU leaders asked the Council, the Commission, the ECB and the Eurogroup to take the work forward to strengthen the euro’s international standing, notably as a transaction currency and a reserve currency. Additionally, the European Council endorsed the Commission proposal for Bulgaria to adopt the euro, and reiterated the need to advance with the savings and investment union.

EU leaders mentioned simplification as well as the avoidance of over-regulation, highlighting the need for a ‘simplicity by design’ approach. They also asked the Commission and the co-legislators not to add additional administrative burdens in the legislative and implementation phases.

The European Council expressed its concern about the global instability of and pressure on energy markets. In this context, it reiterated its call for ‘building a genuine energy union by 2030’. Security of supply and reducing dependencies was mentioned as a separate point, and EU leaders ‘welcomed the progress achieved since 2022’.

As usual in June, EU leaders discussed the integrated country-specific recommendations, thus allowing the conclusion of the European Semester.

Migration

The European Council adopted conclusions on migration, which confirmed the new orientation taken on migration since October 2024, with a focus on the prevention and countering of irregular migration, including through new approaches and means, while respecting EU and international law. The core aspects of the policy include the external dimension of migration; the implementation and application of legislation; the fight against instrumentalisation, human trafficking and smuggling of migrants; the increase and acceleration of returns; visa policy alignment by neighbouring countries; providing safe and legal pathways for migrants; and the strengthening of security at the EU’s external borders. The conclusions invite the co-legislators to continue examining the Commission’s legislative proposals of March 2025, notably on the better management of returns of migrants.

The most important discussion on migration nevertheless took place in the margins of the European Council meeting. Organised by Denmark, the Netherlands and Italy, a group of EU leaders have met ahead of European Council meetings since October 2024 to discuss among themselves, and with the European Commission President, the issue of migration. When first introduced in 2024, the breakfast club included 11 national leaders; after several recent government changes, this number has risen to 14 Heads of State or Government (Austria, Belgium, Cyprus, Czechia, Denmark, Germany, Greece, Hungary, Italy, Latvia, Malta, the Netherlands, Poland and Sweden), originating from all European political families apart from the liberals. Despite the growing number of members, Viktor Orbán is not satisfied with the progress of this group, which in his view only talks without any real consequences, so he invited his peers to join his ‘rebellion’ on migration policy.

Read this briefing on ‘Outcome of the European Council meeting of 26 June 2025‘ in the Think Tank pages of the European Parliament.

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