EU Leaders to Discuss China Trade Deficit, Ukraine and 2028–2034 Budget
EU leaders will gather in Brussels for two days of talks on the bloc’s economic competitiveness, its next long-term budget and support for Ukraine. A central concern is the trade deficit with China, which reached €360 billion ($400.4 billion) last year and is expected to grow further this year. The summit follows a European Commission agreement with Beijing to curb imports of Chinese hybrid cars.
The EU accuses China of using state subsidies that distort competition, while industry groups link rising Chinese imports to factory closures across Europe. German Chancellor Friedrich Merz and French President Emmanuel Macron have called for stronger measures against market distortions. Leaders will also consider how high energy prices are weakening European competitiveness.
Negotiations over the EU’s 2028–2034 budget are unlikely to produce an immediate breakthrough. Unanimous approval is required, and disputes persist between wealthier net contributors and countries dependent on cohesion funding. Leaders hope to narrow their differences before a special summit in November and reach a compromise by year-end, ahead of national elections that could complicate agreement.
On Friday, Ukrainian President Volodymyr Zelenskyy is expected to seek greater European support as Russia intensifies attacks before winter. European assistance is becoming more important amid uncertainty over US policy under President Donald Trump.
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