EU leaders are meeting in Brussels on Thursday and Friday to discuss the bloc’s trade deficit with China, its next long-term budget and further support for Ukraine.
The two-day summit comes as the European Union faces growing economic pressure from Chinese imports, high energy prices and divisions over how to finance its priorities for 2028–2034.
The discussions are also expected to lay the groundwork for further negotiations on the next EU budget, with leaders hoping to reach a compromise by the end of the year.
EU seeks to address trade deficit with China
Leaders are expected to examine measures to tackle the EU’s growing trade deficit with China, which reached €360 billion last year and is projected to rise further this year.
The EU has accused Beijing of unfair economic practices, arguing that state subsidies give Chinese industries an advantage over European competitors. Industry groups have also warned that rising imports are contributing to factory closures across the bloc.
The discussions follow an agreement between the European Commission and China aimed at moderating Chinese hybrid car exports to the EU.
Ahead of the summit, German Chancellor Friedrich Merz and French President Emmanuel Macron called for new European measures to counter practices that distort competition.
Rising energy prices are also expected to feature in discussions about the competitiveness of European industry.
EU budget talks face divisions
The bloc’s next seven-year budget, covering 2028 to 2034, is another major item on the agenda.
Negotiations remain difficult, with wealthier member states and countries that depend more heavily on EU cohesion funding divided over spending priorities and contributions.
The Brussels meeting is not expected to produce a breakthrough. However, leaders hope to make progress towards a compromise by the end of the year, ahead of a special summit planned for November.
The budget requires unanimous approval from member states. Elections scheduled in several EU countries next year could make reaching an agreement more difficult.
Ukraine support on Friday’s agenda
On Friday, leaders are expected to discuss further support for Ukraine as Russia continues its invasion ahead of winter.
Ukrainian President Volodymyr Zelensky has been invited to join the meeting and is expected to call for greater European assistance as Russian strikes continue to cause civilian casualties.
European support has become increasingly important amid uncertainty over the future direction of US policy towards the war under President Donald Trump.
Also read: Economist: Thousands of Russians flee country amid fears of mobilisation
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