EU Leaders Convene in Cyprus for Informal Summit on Defence and Strategic Autonomy

The leaders of the European Union are meeting today in Cyprus for an informal summit that will consider, among other things, how to strengthen European defence. The meeting kicks off with a dinner in a resort, and on the menu is Article 42.7 of the EU treaties, a mutual assistance clause that could one day stand in for NATO's Article 5, meaning that all countries have to assist one when it comes under attack.

Speaking to Europe Today, former NATO Secretary General Anders Fogh Rasmussen said: “I think we in Europe have to be able to stand on our own feet.”

The debate around this clause is becoming more and more urgent now that United States President Donald Trump has repeatedly threatened to withdraw from the North Atlantic alliance, and often called it a “paper tiger.”

Trump’s erratic geopolitical agenda, his past threats to take over Greenland and his perpetual attacks on European allies are pushing EU leaders to find alternatives to the US defence umbrella.

Cyprus President Nikos Christodoulides, who hosts the two-day meeting, wants to begin an in-depth reflection on Article 42.7, which in theory envisions mutual assistance in case of an armed aggression against a member state.

In practice, it has been used only once, by France in 2015, following the terrorist attack in Paris. Triggering it against an external threat and eventually dragging all the EU into a war is uncharted territory.

"We have Article 42.7, and we don't know what is going to happen if a member state triggers this article," Christodoulides told AP ahead of the summit. The clause is particularly important for Cyprus, which is not a NATO member and was recently affected by a drone attack by Iran. The EU treaties leave the door open for different types of assistance, from economic and diplomatic to military.

In the meantime, EU countries are rearming, also through a low-interest loan scheme called SAFE, launched last year by Brussels to strengthen defence industries. Nineteen countries have presented a national defence plan to be financed by the EU, but the Hungarian one is being reassessed by Péter Magyar's incoming Tisza party government.

"We will critically review the list submitted by the outgoing government and make decisions based on real needs and an assessment of corruption risks," a Tisza source told Sandor, on condition of anonymity. The corruption risks referred to are understood to involve Hungarian industrial interests tied to Viktor Orbán's outgoing government.

EU leaders gathering in Cyprus are also set to discuss Russia's invasion of Ukraine with President Volodymyr Zelenskyy, the war in the Middle East, the resulting energy crisis, and the EU's common multiannual budget.

They will endorse a two-year reform plan called “One Europe, One Market”, which is meant to complete the EU single market by 2028. The document is a roadmap with target dates for reaching political agreements on specific files, to be agreed by the EU institutions.

It was at the center of an interinstitutional spat on Wednesday, when the European Parliament’s groups’ political leaders pushed for an alternative version and threatened to block President Roberta Metsola from signing the paper at the Cyprus summit.

After a longer-than-usual meeting in Brussels, the majority of the leaders agreed on minor changes and a single addition, recalling the need to “encompass the social dimension of the single market” at the end of the paper.

“Sometimes words are very, very important,” a person who was in the room told me.

EU unblocks €90bn Ukraine loan and new Russia sanctions

The European Union has launched the internal process to unblock the €90 billion loan for Ukraine and the 20th package of sanctions against Russia, after a long stand-off due to the opposition of Hungary and Slovakia.

The so-called written procedure began on Wednesday afternoon during a meeting of ambassadors in Brussels and should be concluded today in the afternoon, when a final decision could be announced.

As member states have up to 24 hours to register any objection, Hungarian or Slovak governments may still prevent the adoption of sanctions by unanimity if they choose to, but diplomats believe that is unlikely.

A deal is almost certain following the restoration of the Druzhba oil pipeline, which has been at the centre of the veto for months. The Soviet-era infrastructure, damaged in late January by Russian drones, has now been repaired and can resume operations.

The fresh EU sanctions include a full ban on maritime services for Russian oil tankers, but after Malta and Greece voiced serious concerns, this measure has been conditional on an agreement at the G7 level, which seems very difficult to reach.

EU calls for energy vouchers and VAT reductions to curb prices

The European Commission urged EU governments to provide energy vouchers, income support and social tariffs on Wednesday to help vulnerable groups facing high energy prices caused by the war in the Middle East.

Brussels is also suggesting tax reductions on electricity and clean technologies, while encouraging consumers to lower bills over time through subsidies for clean technologies, like heat pumps, solar panels and home insulation.

The package of measures, called AccelerateEU, comes amid fears that the disruption in the supply of fossil fuels to Europe will keep the energy prices high for consumers and industry.

“Even in a best-case scenario, we are looking into some very difficult months and even years, because even if there's a peace tomorrow, to rebuild the gas infrastructure, for instance, in Qatar will take maybe years. So prices will not stabilise at the level they were before this crisis”, Energy Commissioner Dan Jørgensen told Europe Today.

The Commission insists that all emergency measures are "temporary, targeted and aligned" with long-term decarbonisation. Its ultimate aim is to reduce the bloc’s reliance on imported fossil fuels, which have cost the EU €24 billion due to higher prices since the United States and Israel launched a war against Iran in February.