EU Leaders Clash Over Budget and China Trade in Brussels

European Union leaders convened for a two-day summit in Brussels to address a €360 billion trade deficit with China, spiraling energy prices, and the 2028-2034 long-term budget. To curb Chinese exports, the European Commission secured preliminary concessions on electric vehicles and hybrid car imports. Germany reversed its previous opposition to anti-subsidy tariffs, joining France in calling for trade defense measures and a potential kill switch for market access to protect the chemicals, steel, and machinery sectors.

Energy costs, driven by Middle East hostilities and oil prices exceeding $100 per barrel, prompted Prime Ministers Giorgia Meloni and Kyriakos Mitsotakis to urge a relaxation of fiscal rules. Six member states proposed a windfall tax on energy companies to fund relief. Meanwhile, budget negotiations stalled as Ireland proposed €141 billion in cuts, creating a divide between frugal nations and the Friends of Cohesion.

Regarding Ukraine, the bloc expressed regret over U.S. President Donald Trump's decision to lift sanctions on Russian diesel. While President Volodymyr Zelenskyy attended the summit to secure funding for 2027, EU leaders remained reluctant to follow Trump's request that Kyiv cease long-range strikes on Russian oil refineries, viewing those attacks as essential leverage for Ukraine.