EU-budget stalemate between frugals and spenders to likely see extra taxes
EU Council president António Costa has set an end-of-year deadline for the next budget – but negotiators say there is only a “50-50 chance” of success.
Economy
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Ahead of a sticky summit on next trillion euro EU budget, these are the major stumbling blocks
EU leaders will hold their first formal discussion on Friday, after the Cypriot presidency tabled the first so-called “negobox”, a draft document setting out possible spending compromises.
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Watering down EU carbon market will backfire with higher costs, councils warn
The Dutch Scientific Climate Council led the appeal, after member states including Italy and Poland began pushing for concessions in the ongoing emissions trading system revision.
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ECB raises interest rates despite Iran war’s hit to EU economy
The cost of services like haircuts, restaurant meals, plumbers, and hotel stays also rose faster in recent months, from three to 3.5 percent, suggesting price pressures are spreading beyond just energy and food.
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EU watchdog pours cold water on commission plans to loosen rules on energy spending
The board’s annual assessment lands just days after the commission announced plans to loosen budget rules for energy investments.
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Fuel subsidies, green bets, and fiscal strain: How Europe’s biggest economies are responding to the energy crisis
The commission has warned governments against stoking demand with broad subsidies at a time of acute supply shortage. So how are Europe’s biggest economies responding three months in?
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EU relaxes debt and spending limits for ‘energy security’ investments
There are long-standing disagreements between member states about what constitutes decarbonisation and the proposal leaves room for member states to define what does and does not fit within the framework.
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‘De-risking not decoupling’ with Beijing – but what does the EU actually mean?“Critical partner” or “unfair” rival? The EU says that its trade relations with China must change – but Beijing retorts that any curbs on its exports will be met with retaliation.
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A future European defence is being born in Munich
For Europeans facing a more aggressive Russia and a less reliable US, Munich’s booming defence startups show how quickly war is reshaping industry.
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EU-China trade war edges closer as Brussels lines up emergency import safeguards
The EU Commission is now aiming a series of blows at China’s trade surplus – pulling out the ‘overcapacity instrument’ instrument from its armoury, which would cap imports of certain Chinese products to the EU.
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With Hormuz shut, Norway urges EU to rethink Arctic oil ban — despite analysts and environmentalists’ doubts
Norway is pushing Brussels to rethink its long-standing opposition to oil and gas development in the European Arctic, pushing the EU into reviewing its strategy. But would it meaningfully increase Europe’s energy security? And at what environmental cost?
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China threatens retaliation over new EU tool to curb Chinese ‘overcapacity’
Impose a so-called ‘overcapacity instrument’ aimed at reducing Chinese exports and we will hit back with “resolute countermeasures”, Beijing has warned the EU.
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Hormuz crisis shows Europe more exposed to gas price shocks than before Ukraine war, study finds
If the Strait of Hormuz remains shut and the US were to restrict gas exports to Europe, prices would jump above the 2022 peak, researchers warn.
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MEPs claim victory as Trump trade pact gets kill-switch
‘We got what we need’. A suspension and sunset clause give MEPs the guarantees they had demanded in trilogue talks with EU ministers on Wednesday morning, giving the parliament a major PR victory.
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![[Interview] EU’s new merger overhaul risks ignoring the small firms that keep Europe competitive, economist says](https://static.euobserver.com/2026/05/bernardo-2400x1603.jpeg)
[Interview] EU’s new merger overhaul risks ignoring the small firms that keep Europe competitive, economist says
The EU is loosening merger rules to build larger European companies that can compete globally, but may be overlooking its SMEs, where much of Europe’s innovation is happening.
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Trump in China trade deals leave Brussels asking if Europe is being taken seriously by Beijing
The EU’s relations with China are ‘complex’ and marked by ‘systemic rivalry’, the EU’s ambassador to China conceded on Friday.
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Europe’s running out of airplane fuel; what will happen to our holidays?
The question is: how much is left in Europe, and how bad can it get? One of the problems with answering that question is that unlike gas and electricity, oil markets are opaque. There is no standardised European process for collecting and sharing real-time data on stocks and flows oil and fuel.
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Shell profits surge on Iran war price-shock as windfall tax calls grow
The London-based oil major reported adjusted earnings of €6.1bn, beating market expectations and doubling last quarter’s results. The chief executive defended the results as showing Shell’s “relentless focus on operational performance.”
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MEPs hail ‘good progress’ but deal on US trade pact remains elusive
MEPs are still to agree their final position on the trade agreement with the US — despite pleas from the bloc’s top trade negotiator for a ‘breakthrough’.
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Where did the EU’s Covid recovery money go? Auditors say it’s hard to tell
Because transparency rules are weak, it remains difficult to tell what €577bn in Covid-spending has achieved and who ultimately received it.