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Six takeaways from Cyprus’ €1.7tn EU budget compromise Six takeaways from Cyprus’ €1.7tn EU budget compromise
European Union

Six takeaways from Cyprus’ €1.7tn EU budget compromise

The battle over the EU’s next seven-year budget is entering a more political phase. The Council presidency’s opening offer would trim the Commission’s proposal by just 2%, frustrating fiscally conservative member states. Cuts are concentrated on competitiveness and foreign-policy programmes, rather than farm or regional spending.
Multiannual financial framework (MFF)
Six takeaways from Cyprus’ €1.7tn EU budget compromise Six takeaways from Cyprus’ €1.7tn EU budget compromise
European Union

Six takeaways from Cyprus’ €1.7tn EU budget compromise

The battle over the EU’s next seven-year budget is entering a more political phase. The Council presidency’s opening offer would trim the Commission’s proposal by just 2%, frustrating fiscally conservative member states. Cuts are concentrated on competitiveness and foreign-policy programmes, rather than farm or regional spending.
Multiannual financial framework (MFF)
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Energy security
EU’s energy security overhaul shaped by crisis, war EU’s energy security overhaul shaped by crisis, war
KairosDee/iStock

EU’s energy security overhaul shaped by crisis, war

Amid twin threats from Russia and Iran, the Commission is planning to update its security of energy supply laws for an age of geopolitical uncertainty. Technical questions about physical and cyber attacks, stockpiling, and gas storage will fit into a wider political battle over the energy transition.
Energy security · Iran war · Fossil fuels
EU’s energy security overhaul shaped by crisis, war EU’s energy security overhaul shaped by crisis, war
KairosDee/iStock

EU’s energy security overhaul shaped by crisis, war

Amid twin threats from Russia and Iran, the Commission is planning to update its security of energy supply laws for an age of geopolitical uncertainty. Technical questions about physical and cyber attacks, stockpiling, and gas storage will fit into a wider political battle over the energy transition.
Energy security
document
EU Exclusive: Renewable energy groups, climate NGOs and trade unions urge EU leaders to cut their fossil fuel habit

EU’s energy security overhaul shaped by crisis, war

Leak
EU Electrification action plan brought forward to 15 July
EU Gas lobby calls for ‘toolbox’ of measures to incentivise gas storage in energy security revision
EU Summer outlooks: EU electricity supply stable, but renewed focus required on gas storage
EU Gas storage levels in EU could hit 80% by end of summer despite Iran blockage, Commission says
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Édition · FR
La couverture des politiques publiques françaises et européennes ayant un impact en France
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Article à la Une
Budget de l’UE : les six points à retenir de la proposition de compromis chypriote Budget de l’UE : les six points à retenir de la proposition de compromis chypriote
Union européenne

Budget de l’UE : les six points à retenir de la proposition de compromis chypriote

Budget de l'Union 2028-2034
Budget de l’UE : les six points à retenir de la proposition de compromis chypriote Budget de l’UE : les six points à retenir de la proposition de compromis chypriote
Union européenne

Budget de l’UE : les six points à retenir de la proposition de compromis chypriote

Budget de l'Union 2028-2034
Budget de l’UE : les six points à retenir de la proposition de compromis chypriote Budget de l’UE : les six points à retenir de la proposition de compromis chypriote
Union européenne

Budget de l’UE : les six points à retenir de la proposition de compromis chypriote

Sujets à la Une
Budget de l'Union 2028-2034 Adaptation au changement climatique E-commerce Pesticides Audiovisuel Commission (2024-2029)
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focus
Carbon border adjustment mechanism (CBAM)
The CBAM value chain passes the buck The CBAM value chain passes the buck
TOMMY/ISTOCK

The CBAM value chain passes the buck

The Commission’s plan to extend its carbon border levy is proving more controversial than expected. While many industries want the protection from foreign competition it affords, few want to be the ones just outside the perimeter who could end up footing the bill.
Carbon border adjustment mechanism (CBAM) · CBAM extension to downstream products · Industrial policy · Energy-intensive industries
The CBAM value chain passes the buck The CBAM value chain passes the buck
TOMMY/ISTOCK

The CBAM value chain passes the buck

The Commission’s plan to extend its carbon border levy is proving more controversial than expected. While many industries want the protection from foreign competition it affords, few want to be the ones just outside the perimeter who could end up footing the bill.
focus
Carbon border adjustment mechanism (CBAM)
EU Cyprus aims for CBAM extension deal
document
EU ETS: Commission will prolong free allowances, while extending to aviation, waste: internal note
EU·UKR Ukraine needs CBAM pause, says European Business Association, citing 2% GDP loss

The CBAM value chain passes the buck

document
EU·IE Dublin pins Grids Package, ETS reform, CBAM, IAA as presidency priorities
EU Renew’s CBAM lead Pascal Canfin seeks views on emergency brake, e-commerce sites
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Methane
Softening of EU methane laws sparks NGO alarm Softening of EU methane laws sparks NGO alarm
ISTOCK

Softening of EU methane laws sparks NGO alarm

The Commission has vowed not to reopen its landmark 2024 rules aiming to curb the greenhouse gas — though pressure to do so from the US and fossil fuel producers has only intensified following the Iran war. Brussels’ alternative, ‘pragmatic’ approach of tweaking reporting and penalties has left few happy.
Methane · EU-US relations · Natural gas · Liquefied natural gas (LNG)
Softening of EU methane laws sparks NGO alarm Softening of EU methane laws sparks NGO alarm
ISTOCK

Softening of EU methane laws sparks NGO alarm

The Commission has vowed not to reopen its landmark 2024 rules aiming to curb the greenhouse gas — though pressure to do so from the US and fossil fuel producers has only intensified following the Iran war. Brussels’ alternative, ‘pragmatic’ approach of tweaking reporting and penalties has left few happy.
Methane
EU Oil and gas industry pushes to delay methane regulation, saying proposed penalty relief isn’t enough

Softening of EU methane laws sparks NGO alarm

EU Gas storage levels in EU could hit 80% by end of summer despite Iran blockage, Commission says
Leak
document
EU Commission offers oil and gas importers three-year grace period to avoid methane regulation fines, draft shows
EU Commission should stand firm against pressure to weaken EU methane law, says MEP who negotiated it
EU Commission guidance on methane penalties too weak to make companies comply, climate NGOs warn
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focus
Emissions trading system (ETS)
What EU member states want from carbon market reform What EU member states want from carbon market reform
creativaImages/iStock
Infographic

What EU member states want from carbon market reform

There’s been intense debate on just how to tweak the EU emissions trading system — with some pushing to ease rules to aid competitiveness, and others defending a key tool of industrial decarbonisation. As the Commission prepares a July review of its flagship climate instrument, Contexte takes stock of where EU capitals stand.
Emissions trading system (ETS) · Climate change
What EU member states want from carbon market reform What EU member states want from carbon market reform
creativaImages/iStock
Infographic

What EU member states want from carbon market reform

There’s been intense debate on just how to tweak the EU emissions trading system — with some pushing to ease rules to aid competitiveness, and others defending a key tool of industrial decarbonisation. As the Commission prepares a July review of its flagship climate instrument, Contexte takes stock of where EU capitals stand.
focus
Emissions trading system (ETS)
document
EU ETS: Commission will prolong free allowances, while extending to aviation, waste: internal note
EU EEX exchange will manage ETS, ETS2 allowance auctions for five more years
EU ETS veteran Peter Liese rejects far-right alliance for upcoming revision
EU EPP appoints Niels Flemming Hansen as negotiator on ETS market stability reserve: sources
EU·ES Commission refers Spain to EU’s top court for failure to transpose new ETS rules
EU Hoekstra: Commission will make ETS ‘work like hell’ for innovation and climate action
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China
Brussels signals tougher line on China, as national positions shift Brussels signals tougher line on China, as national positions shift
Andres MARTINEZ CASARES/AFP

Brussels signals tougher line on China, as national positions shift

As commissioners prepare for a closed-door discussion on EU–China relations on 29 May, signs are mounting that Brussels could take a tougher stance on trade policy. Despite previous persistent reluctance from some member states, the EU executive appears ready to take action.
China · Trade
Brussels signals tougher line on China, as national positions shift Brussels signals tougher line on China, as national positions shift
Andres MARTINEZ CASARES/AFP

Brussels signals tougher line on China, as national positions shift

As commissioners prepare for a closed-door discussion on EU–China relations on 29 May, signs are mounting that Brussels could take a tougher stance on trade policy. Despite previous persistent reluctance from some member states, the EU executive appears ready to take action.
China
EU·CN Belgian PM criticises Europe’s fear of China, calls for strategy
EU·CN Commission remains cautious after strategic meeting on China
ES·CN Spain denies backing proposals to toughen trade policy on China
EU·CN Ahead of Commission debate, Séjourné takes a hard line on China

Brussels signals tougher line on China, as national positions shift

EU Outgoing EU trade chief warns of China’s industrial dominance, leaves trade tool review to successor
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Von der Leyen 2 Commission
Commission’s charm offensive leaves industry unconvinced Commission’s charm offensive leaves industry unconvinced
Jérémie Luciani for Contexte

Commission’s charm offensive leaves industry unconvinced

The EU Commission says it’s gaining buy-in and realism by including business in decision-making. Despite a flurry of high-level meetings and promises to bring business into EU policymaking, many industry representatives say its corporate outreach remains heavy on optics and light on results.
Von der Leyen 2 Commission · Industrial accelerator act (IAA) · Industrial policy · Lobbying · Competitiveness
Commission’s charm offensive leaves industry unconvinced Commission’s charm offensive leaves industry unconvinced
Jérémie Luciani for Contexte

Commission’s charm offensive leaves industry unconvinced

The EU Commission says it’s gaining buy-in and realism by including business in decision-making. Despite a flurry of high-level meetings and promises to bring business into EU policymaking, many industry representatives say its corporate outreach remains heavy on optics and light on results.
Von der Leyen 2 Commission
EU S&D, Greens and lead EPP MEP disappointed by defence deal with Council
EU·INT Staff moves: Van Kemseke, IAEA
EU Changes in Energy Commissioner Dan Jørgensen’s cabinet

Commission’s charm offensive leaves industry unconvinced

EU·HU EU executive clears Hungarian commissioner in institutional spying case
EU Dozens of MEPs call on EU countries to form ‘European Defence Union’
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focus
Iran war
Tracking the 2026 energy crisis Tracking the 2026 energy crisis
US Navy/ZUMA/SIPA
Infographic

Tracking the 2026 energy crisis

From tax cuts to electrification plans, Contexte sets out how key EU member states are responding to what some have called the biggest energy crisis in history.
The vicious cycle of the EU’s energy price dilemma The vicious cycle of the EU’s energy price dilemma
THIERRY MONASSE/ANDBZ/ABACA

The vicious cycle of the EU’s energy price dilemma

While subsidies could help manage the short-term pain of the Iran war, some fear they could only increase demand for fossil fuels and impede the intended switch to electricity. The tension is on display in a pair of documents the Commission is set to put forward later this month.
focus
Iran war

EU’s energy security overhaul shaped by crisis, war

Leak
document
EU Commission finds legal workaround to tax electricity less than gas
document
EU S&D MEPs call for EU-wide windfall tax on oil and gas, with revenues supporting households
EU EIB sees energy crises as driver for green transition, but won’t rule out gas investment
EU Decarbonisation, electrification, power storage spending can benefit from EU fiscal carve-out, Commission says
EU Summer outlooks: EU electricity supply stable, but renewed focus required on gas storage
Leak
document
EU Commission offers oil and gas importers three-year grace period to avoid methane regulation fines, draft shows
EU Most EU countries are ignoring advice to target their billions in energy crisis support, Commission says
EU Commission worsens forecast for growth and inflation, blames energy price shock on Iran war
EU European LNG import prices could spike above 2022 peak if prolonged Hormuz closure comes alongside US export restrictions, researchers say
EU·IT Meloni threatens to pull defence support as it seeks fiscal flexibility to tackle energy crisis
EU EU more dependent than ever on LNG, raising exposure to global market risks, warns ACER
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focus
EU-US relations
Explained: The EU–US trade deal Explained: The EU–US trade deal
Photo: Brendan Smialoski/AFP

Explained: The EU–US trade deal

Contexte answers your key questions about the deal the EU struck with its largest trading partner — from tariffs and political pressure to what still needs to happen before it can enter into force.
EU-US relations · Trade
Explained: The EU–US trade deal Explained: The EU–US trade deal
Photo: Brendan Smialoski/AFP

Explained: The EU–US trade deal

Contexte answers your key questions about the deal the EU struck with its largest trading partner — from tariffs and political pressure to what still needs to happen before it can enter into force.
focus
EU-US relations
EU Oil and gas industry pushes to delay methane regulation, saying proposed penalty relief isn’t enough
EU·US Leading MEP expects US to maintain tariff cap despite fresh threats — or else EU ‘will act’
EU·US Shunning US tech will undermine EU and bolster China, says US ambassador
EU·US Trump’s new tariff proposals won’t breach EU trade deal cap, says US trade rep
EU·US Member states greenlight EU joining US-led initiative on AI infrastructure
EU·US Commission puts forward measures to end reliance on US tech firms
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focus
Competitiveness
European competitiveness: The race to cut red tape and its limits European competitiveness: The race to cut red tape and its limits
Video

European competitiveness: The race to cut red tape and its limits

Free access
Watch the replay of our Contexte Live discussion on the EU’s plan to make competitiveness a central pillar of its industrial strategy.
EU’s next mega fund pits top performers against laggard regions EU’s next mega fund pits top performers against laggard regions
Credit: Wenich-mit/iStock

EU’s next mega fund pits top performers against laggard regions

The Commission’s plan for a leaner EU rulebook The Commission’s plan for a leaner EU rulebook
European Union, 2026

The Commission’s plan for a leaner EU rulebook

focus
Competitiveness
EU MEPs raise potential conflict of interest over industrial AI envoy
EU·CN Belgian PM criticises Europe’s fear of China, calls for strategy
document
EU Commission defends foreign investment restrictions in industrial plan
EU CEO pessimism over Europe’s competitiveness ‘unusual and concerning’, says lobby group
EU Commission recruits experts in simplification bid
document
EU·IE No firm deadlines for priority files listed in Irish presidency document
EU MEPs challenge broad third-country eligibility in ‘Made in EU’ proposal
EU Cap grid tariffs for energy-intensive industries, lobby groups say
EU Member states will vote on ETS benchmark update on 15 June
Explore this focus
EU fiscal rules
Meloni walks tightrope over EU fiscal rules as election pressure mounts Meloni walks tightrope over EU fiscal rules as election pressure mounts
Ufficio Stampa Palazzo Chigi/ZUMA-REA

Meloni walks tightrope over EU fiscal rules as election pressure mounts

Faced with surging energy costs and electoral pressures, Italy is pushing for looser EU budget constraints. The Italian prime minister will have to balance fiscal credibility with growing domestic demands.
EU fiscal rules
Meloni walks tightrope over EU fiscal rules as election pressure mounts Meloni walks tightrope over EU fiscal rules as election pressure mounts
Ufficio Stampa Palazzo Chigi/ZUMA-REA

Meloni walks tightrope over EU fiscal rules as election pressure mounts

Faced with surging energy costs and electoral pressures, Italy is pushing for looser EU budget constraints. The Italian prime minister will have to balance fiscal credibility with growing domestic demands.
EU fiscal rules
EU EU budget watchdog criticises Commission’s plan to relax energy spending rules
EU Commission could allow limited fiscal leeway for countries hit by energy crisis
EU Dombrovskis plays down Meloni’s bid for fiscal flexibility, saying most EU capitals aren’t interested
EU Thirteen EU countries set to exceed 3% deficit by 2026

Meloni walks tightrope over EU fiscal rules as election pressure mounts

EU·IT EU fiscal rules set to hold despite Italy’s push for flexibility
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focus
European Grids Package
The new grids hot topic: Who gets to plan Europe’s electricity networks? The new grids hot topic: Who gets to plan Europe’s electricity networks?

The new grids hot topic: Who gets to plan Europe’s electricity networks?

A proposal to give the Commission powers to centralise planning has become the most controversial element of a December bill to boost Europe’s power grids. Transmission operators are wary of Brussels encroaching on their terrain, while others cite concerns over transparency and governance.
European Grids Package · Trans-European Networks for Energy (TEN-E)
The new grids hot topic: Who gets to plan Europe’s electricity networks? The new grids hot topic: Who gets to plan Europe’s electricity networks?

The new grids hot topic: Who gets to plan Europe’s electricity networks?

A proposal to give the Commission powers to centralise planning has become the most controversial element of a December bill to boost Europe’s power grids. Transmission operators are wary of Brussels encroaching on their terrain, while others cite concerns over transparency and governance.
focus
European Grids Package
EU Cyprus presidency aims for Coreper agreement on grids package on 17 June, sources say
Leak
document
EU Latest Council revision softens tacit approval for grid permits even further
Leak
document
EU In latest Council redraft, Cyprus cuts congestion revenue to be ringfenced to initial level of just 10%
document
EU·IE Dublin pins Grids Package, ETS reform, CBAM, IAA as presidency priorities
EU MEPs push to delete automatic approval of grid connections for solar, storage and vehicle recharging
EU Ireland’s energy department to be ‘one of the busiest’ during EU presidency, says minister
Explore this focus
focus
Multiannual financial framework (MFF)
MEPs to watch in the next EU budget fight MEPs to watch in the next EU budget fight
Jérémie Luciani for Contexte
Who’s who

MEPs to watch in the next EU budget fight

Free access
After weeks of talks, the European Parliament is finalising its team for negotiations on the 2028–2034 long-term EU budget. Contexte walks you through the key rapporteurs and shadow rapporteurs on the main files.
Multiannual financial framework (MFF) · European Parliament
MEPs to watch in the next EU budget fight MEPs to watch in the next EU budget fight
Jérémie Luciani for Contexte
Who’s who

MEPs to watch in the next EU budget fight

Free access
After weeks of talks, the European Parliament is finalising its team for negotiations on the 2028–2034 long-term EU budget. Contexte walks you through the key rapporteurs and shadow rapporteurs on the main files.
focus
Multiannual financial framework (MFF)

Six takeaways from Cyprus’ €1.7tn EU budget compromise

EU Cyprus Council presidency suggests 4% cut to EU budget for energy, decarbonisation
EU Key MEPs reject first EU budget compromise
EU EU summit ‘to send a strong signal of unity’ to Moscow, says Costa
EU Member states cautiously debate digital tax for new EU budget streams
EU ITRE MEPs reiterate grid security push in Connecting Europe Facility
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Hungary
Costa: EU must find legal response to Orbán’s unprecedented Ukraine veto Costa: EU must find legal response to Orbán’s unprecedented Ukraine veto
LUONG THAI LINH / AFP
Interview

Costa: EU must find legal response to Orbán’s unprecedented Ukraine veto

Free access
In an exclusive interview with Contexte, European Council President António Costa said the standoff with Hungary has pushed the EU into uncharted legal territory. Separate allegations of leaks of EU secrets from Budapest to Moscow are also deepening concerns over trust, loyalty and the integrity of Brussels’ decision-making.
Orbán prepares to challenge Hungary election, critics warn Orbán prepares to challenge Hungary election, critics warn
DAVID BALOGH/XINHUA/REA

Orbán prepares to challenge Hungary election, critics warn

What it will take to unlock Hungary’s frozen EU funds What it will take to unlock Hungary’s frozen EU funds
ALAIN ROLLAND/EP

What it will take to unlock Hungary’s frozen EU funds

Hungary
EU·HU Hungary to join EU anti-fraud watchdog
EU·HU Despite its partial deal to unlock EU cash, Hungary still has work to do on LGBTQ+ rights, migration, defence, Brussels says
EU·HU Unlocking Hungary’s frozen funds: What happens next
EU·HU Hungary, Commission agree rule-of-law reforms to unlock €16bn in frozen EU funds
EU·HU Mr Magyar comes to Brussels, still unsure of securing frozen EU funds
EU·HU Commission expects new Hungarian RRF plan soon, in talks over SAFE loan
EU Poland, Hungary vow to turn Visegrad group into the new EU engine
HU Magyar sworn in as Hungary’s new leader
EU·HU EU executive clears Hungarian commissioner in institutional spying case
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