Soaring energy costs, the EU's extended budget, and backing for Ukraine following Donald Trump's recent gesture to Vladimir Putin will take center stage as leaders come together for a two-day summit in Brussels.
Discussions will also cover enlargement, hybrid warfare, economic stagnation, increasing borrowing costs, trade imbalances, and irregular migration.
The meeting will commence early on Thursday with a highly awaited conversation regarding energy costs, which conflicts in the Middle East have caused to surge. Oil stays above $100 per barrel even after a coordinated release by the G7, while gas is at its peak since winter 2022, with underground storage levels falling below the norm.
The market upheavals have unsettled EU leaders, who face increasing pressure to provide real assistance for families and businesses, particularly as temperatures drop and the heating season starts.
Italian Prime Minister Giorgia Meloni and Greek Prime Minister Kyriakos Mitsotakis have spearheaded the initiative, urging Brussels to ease the bloc's fiscal regulations to enable governments to fund "temporary and focused measures" to mitigate the energy crisis.
Other nations, however, fear that too much flexibility will encourage fossil fuel use and deter investments in the green transition.
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At the same time, six countries (Austria, Germany, Italy, Poland, Portugal, and Spain) have suggested a Europe-wide windfall tax to collect surplus earnings from energy firms due to elevated prices. However, the concept continues to be polarizing and has not garnered sufficient support.
Energy will be succeeded by another urgent economic issue: China.
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Facing a daily trade deficit of €1 billion, Brussels challenged Beijing by setting a deadline to achieve "tangible results" by October at the latest.
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The outcomes surfaced last week during Trade Commissioner Maroš Šefčovič's visit to Beijing, where he obtained initial concessions regarding hybrid and plug-in hybrid vehicles, rare earth elements and permanent magnets, along with market access for European firms.