EU summit to focus on China, Ukraine and bloc budget

European Union leaders are set to convene in Brussels for a two-day summit, focusing on significant economic issues such as competition from China, the bloc's budget for 2028-2034, and enhanced support for Ukraine amid Russian aggression. The summit's agenda will also cover ways to address the EU's substantial trade deficit with China, which stood at €360 billion in 2022 and is expected to rise further.

In a recent agreement with Beijing, the EU has asked China to limit the import of hybrid vehicles due to concerns about unfair economic practices. Industry representatives warn that China's imports are causing factory closures across the EU. Alongside these issues, the EU will examine energy price increases impacting its competitiveness.

The seven-year EU budget for 2028-2034 will be a contentious topic, requiring unanimous approval and often causing heated negotiations between wealthier and less affluent member states. While no breakthroughs are anticipated, leaders aim to achieve a compromise by the end of the year. The summit is also set to discuss increased European aid for Ukraine, particularly as Russia escalates its attacks ahead of winter, leading to numerous civilian casualties.

President Volodymyr Zelenskyy will join the meeting to plead for greater EU assistance. This comes after the EU executive body reached a deal with China to curb hybrid car imports, claiming China's subsidies are creating an uneven playing field. German Chancellor Friedrich Merz and French President Emmanuel Macron have called for new EU measures to counter market distortions.

The budget discussions, which necessitate unanimous agreement, are expected to be intense, especially with upcoming elections in several member states that could complicate reaching an acceptable deal.