Challenges to European resilience

According to the official, the current rules-based international order is gradually being undermined by the rising economic influence of China, tensions in relations with the US, and the destabilization caused by the war in Iran.

Costa emphasized that the European economy has a strong foundation, yet the well-being of member states is currently under significant pressure.

“We face fragmentation and geoeconomic challenges that test our competitiveness and resilience. We have entered an era of instability,” the European Council President stressed.

Economic development priorities

As part of its strategy for 2026, proclaimed the Year of European Competitiveness, the EU plans to focus on deeper integration of energy, telecommunications, and capital markets.

Costa noted that the energy transition remains a key tool for lowering prices and achieving strategic autonomy, as dependence on imported fossil fuels makes Europe vulnerable.


” The ongoing crisis in the Middle East shows once again how existential it is for Europe to become more independent,” he said, adding that clean domestic energy is already providing cheaper electricity in some regions.


The European Council President also highlighted the protection of strategic industrial sectors, including artificial intelligence and quantum technologies.


He called for the implementation of an ambitious trade policy and diversification of connections to strengthen the EU’s role as a stabilizer of the global economy.


“Europe thirsts to be created. It hungers for the Future!” — concluding his speech, António Costa quoted the Portuguese poet Fernando Pessoa.



EU financial support for Ukraine

Earlier reports indicated that the European Union and the IMF are preparing a new financial package for Ukraine, aimed at ensuring economic stability amid the prolonged war.


In particular, EU countries have moved closer to finalizing a major loan for Kyiv, which would be based on using profits from frozen Russian assets.


At the same time, Brussels discussed mechanisms for servicing these loans. Notably, an initiative has emerged under which the EU intends to charge a fee on the credit funds provided to Ukraine to cover the administrative costs of managing the financial instruments.