The Brussels Brief

EU Affairs in 2026: Navigating a New Era of Unity and Uncertainty

The EU continues to face a rapidly changing political, economic, and geopolitical landscape. From strengthening economic resilience and its competitiveness, while pushing the green and digital transitions, to responding to international conflicts, EU policymakers work to balance the diverse priorities of its Member States while maintaining the Union’s shared values and core interests.

This was always the case, why does it matter now more than ever? Thirty-five years ago, intelligent international relations experts decreed the end of history. Now, in 2026, we realise this is not the case. We are not living in a peaceful world of shared values where we can all focus on making the planet a better and more sustainable place to live for all. In fact, the Leader of the Free World has decreed that the model we had valued until then, based on shared values and international liberalism, is not applicable anymore. We seem to go back to a 19^th century realist model, based on a transactional diplomacy and a cost-benefit approach. As the EU tries to make its way in this new world, it aims to balance its values and belief in a rules-based order with new realities that push it towards ensuring its own security and building a capacity to defend its own interests that goes beyond its regulatory and trade-based toolbox.

So, why EU affairs matter now more than ever? Because the EU continues to represent the most ambitious model of economic and political integration in history. Because this model needs to showcase not only its resilience, but also its capacity to adapt and develop in a way that will respond to existing challenges. Because Russia’s war of aggression against Ukraine has completely changed a paradigm that existed in Europe for decades, one in which the continent survived unplagued by continental conflicts and developed in unscathed by threats on its borders. Because, as Europeans, we want this model to work, perform and remain the most viable system for our continent in the years to come.

Economic Resilience and Competitiveness

Following years of economic disruption caused by the COVID-19 pandemic, inflationary pressures, and energy market volatility, the European Union has shifted its focus toward improving long-term competitiveness. Investment in innovation, advanced manufacturing, clean technologies, and digital infrastructure has become central to the EU’s economic strategy. However, this objective of improving long-term competitiveness remains balanced by the regulatory framework that remains one of the main strengths for the EU. The ability to innovate and improve economic competitiveness will need to remain complemented by the EU’s traditional approach of doing the right thing, in line with the values that all its Member States share.

The single market is the EU’s greatest strength, enabling the free movement of goods, services, capital, and people. To give a practical reflection of what this means, imagine that a product from China enters the single market in the Romanian port of Constanta. The customs authorities in the Romanian port apply the EU Customs Code and its regulatory framework in checking the respective product, including, as the case may be, for sanitary and fitosanitary norms. Then, the product moves freely inside the single market, without it being checked again: it may travel to Germany and be sold in a store in Hamburg. The German authorities will trust that the Romanian authorities have appropriately checked the product upon its entrance in the single market. Trust and a performing regulatory framework remain key for the functioning of the single market. Upon this background, policymakers continue to explore reforms aimed at reducing administrative burdens, supporting small and medium-sized enterprises, and strengthening Europe’s position in global supply chains (which is another issue we will discuss in another article: the need to have access to supplies essential to production, particularly such as critical raw materials).

Climate Leadership

Climate policy remains a defining priority for the European Union. Efforts to reduce greenhouse gas emissions, expand renewable energy production, and improve energy efficiency continue under the EU’s long-term climate objectives. Investments in wind, solar, hydrogen, and modern electricity grids are intended to reduce dependence on imported fossil fuels while supporting economic growth.

The challenge lies in ensuring that the transition remains socially and economically balanced, while the EU’s economic competitiveness remains at a level that allow it to be a relevant player against global powerhouses such as the US and China. The challenge remains where to strike the balance. The Green Deal, proposed in 2019, was an ambitious new economic model that, in its ideal form, would have created new industries and jobs, while at the same time, reducing gas emissions and fighting climate change. Since then, the ambitious thrust has somewhat scaled back: financing was partially diverted and the solution to maintain economic competitiveness at the same time was not yet identified.

Digital Transformation

Europe also aims to position itself as a global leader in digital governance. Policymakers are promoting responsible innovation while introducing frameworks designed to protect consumers, enhance cybersecurity, and encourage trustworthy artificial intelligence. Digital sovereignty has also become an increasingly important objective. The EU aims to strengthen domestic capabilities in semiconductor manufacturing, cloud computing, cybersecurity, and emerging technologies, reducing strategic dependence on external suppliers.

All this is great, but we run across the regulatory challenge once more, particularly as relates to how approaches such as the EU Tech Sovereignty Package will come against the interests of large American IT companies, which find the EU regulations to act as non-tariff barriers.

Foreign Policy and Security

International developments have reinforced the importance of cooperation among EU member states on foreign and security policy. The Union continues to strengthen partnerships with allies while supporting diplomatic initiatives, humanitarian assistance, and regional stability. Defence cooperation has expanded in recent years, with increased investment in joint capabilities, research, and procurement. While defence remains largely a national responsibility, greater coordination reflects shared concerns about Europe’s security environment.

How to best do this? One of the issues that the EU faces in this field is that, while foreign policy and security are under the appanage of the High Representative for Foreign Affairs and the Security Policy, some of the other related components (trade, development, to name just a few) remain under the coordination of the European Commission. Strengthening the High Representative’s powers, as well as those of the European External Action Service, which supports her work, should best serve the overall objectives. However, as a separate article on this blog will discuss (and a topic on which Politico has made several thorough and well-written pieces), the dilemma remains on how to best and efficiently share the responsibilities among the different institutions (the President of the European Council also has significant attributions in external representations), while creating added-value rather than Brussels turf wars.

Migration and Border Management

Migration continues to be one of the most complex issues facing the European Union. Policymakers seek to balance humanitarian responsibilities with effective border management and efficient asylum procedures.

Cooperation with neighboring countries, investment in border infrastructure, and efforts to combat human trafficking remain central components of the EU’s migration strategy. At the same time, discussions continue over how responsibilities should be shared fairly among member states.

Enlargement and European Integration

The prospect of EU enlargement remains an important strategic issue (check out our many enlargement-related articles). Candidate countries continue to pursue reforms related to governance, judicial independence, economic development, and democratic institutions. Enlargement is viewed by many policymakers as both a geopolitical opportunity and a long-term investment in regional stability. Nevertheless, accession requires substantial preparation from both candidate countries and existing member states.

The declared objective is to have the Western Balkans partners, Ukraine and Moldova join the EU in a near future (what near means remains to be determined). The challenge is that, while the candidate countries need to undertake a series of key reforms in all areas, the EU also needs to implement key institutional (and budgetary) reforms to ensure that the EU30+ continues to function.

Conclusion

As Europe moves further into the second half of the decade, the EU stands at a pivotal moment. Success will depend on its ability to foster innovation, strengthen economic resilience, uphold democratic values, and respond effectively to global challenges-and all at the same time. While differences among member states will continue to shape policy debates, cooperation remains the foundation of the European project and its role on the international stage. The Qualified Majority Voting (QMV) is used in many areas (and discussion is ongoing whether it could be extended to fields such as foreign affairs or enlargement, where unanimity is the norm), however, even in these situations, compromise means that all Member States are on board and embrace a solution even when consensus is not met. Compromise, cooperation, consensus even in cases of majority voting – these are some of the other, hidden, strengths of the EU.