European Union

The EU economy is underperforming and faces persistent energy and inflation pressures. ECB President Lagarde stated the economy has slipped below the ECB's baseline, while the Commission warns of a 'long-lasting' energy shock. The Commission approved German industrial electricity subsidies but Austria launched a similar bonus without EU approval.

• 32EU approves €90 billion loan to Ukraine after Hungary drops veto
• 17Five EU countries call for windfall tax on energy company profits
• 10EU countries approve multi-billion euro aid package for Ukraine
• 9EU Proposes Further Energy Measures to Mitigate Iran War Crisis
• 9EU Commission approves German government's industrial electricity price subsidies

EU politics are dominated by a major shift in Hungary, ending Viktor Orbán's long rule. The EU celebrated his defeat and the winner, Magyar, pledged stronger EU partnership and constructive cooperation. Concurrently, US Vice President Vance accused the EU of election interference during a visit to Hungary.

• 13Spain urges EU to scrap Association Agreement with Israel
• 12EU's von der Leyen rejects early Iran sanctions lift, contradicts Merz
• 10EU loan for Ukraine approved, Zelensky heads to Cyprus summit
• 10EU celebrates Orbán's defeat in Hungary elections
• 9Hungary's election winner pledges stronger EU partnership

EU security efforts are focused on external border and fraud control while regional tensions flare. The EU's new digital border system became fully operational and Egyptian customs tightened controls with the EU anti-fraud office. The EU stated no ships crossed the Strait of Hormuz amid heightened US-Iran military incidents.

• 3Two US agents killed in operation, governor denies knowledge
• 32 US Embassy trainers and 2 Mexican agents die in Chihuahua highway crash after drug operation
• 3US rescues pilot from Iranian-downed aircraft
• 2US demands extradition of Rocha on drug charges
• 2US accuses officials of drug trafficking in full list

Societal focus is split between internal cohesion initiatives and external geopolitical tensions. The EU launched a youth mobility program by giving away free train tickets. Public sentiment is tested by external actors, as shown by the Kremlin commenting on the Estonian PM and a foreign minister criticizing an EU equal pay directive as 'ideologically motivated'.

• 18Hungarian LGBTQ law violates EU fundamental rights
• 5EU gives away tens of thousands of free train tickets to young people
• 3EU defends Alzheimer's drug approvals after study
• 3Foreign minister: EU's equal pay directive is 'ideologically motivated'
• 2EU Commissioner reports sharp rise in deportations