09/01/2026
EU Insight 09 January 2026
Brussels, 9 January 2026
CYPRUS TOOK OVER THE COUNCIL PRESIDENCY, WITH AUTONOMY AS THE OVERARCHING GOAL
From 1 January to 30 June 2026, Cyprus presides over the Council of the European Union, for the second time, under the motto ‘An Autonomous Union. Open to the World’. Nicosia will pursue five overarching priorities, namely defence readiness, competitiveness, strategic autonomy, the promotion of European values, and the EU’s long-term budget for 2028-2034. The Presidency’s agenda will be shaped by ongoing geopolitical instability and the need to advance a packed legislative programme, including on economic security, support for Ukraine and advancing the Single Market. Cyprus will also close the current presidency trio with Denmark and Poland, aiming to anchor strategic autonomy more firmly in the Union’s security, economic and social agenda.
BULGARIA JOINS THE EUROZONE
As the year starts, Bulgaria officially became the 21st member of the euro area, marking a major step in its EU integration. The move follows years of economic adjustment and legal reforms to meet the convergence criteria, along intense preparations to manage the changeover for households and businesses. For a short transition period, prices will be shown in both lev and euro, and both currencies will circulate in parallel, with national authorities stressing consumer protection and monitoring for unjustified price increases. Bulgaria will now take part fully in euro area decision-making, including at the European Central Bank, although the adoption of the common currency has remained a politically divisive issue at home.
EUROPEAN LEADERS WEIGH RESPONSE TO US THREATS OVER GREENLAND
European governments are scrambling to shape a joint response to US President Donald Trump’s renewed threats to seize Greenland, against the backdrop of US operations in Venezuela. Several European leaders have stressed that Greenland’s security must be guaranteed collectively through NATO and with full respect for the wishes of its people. Denmark has warned that any US military move against Greenland would call NATO’s very existence into question, while Greenland’s Prime Minister has firmly rejected any talk of annexation. Some Member States, namely France, Germany and Poland, are coordinating options ranging from diplomatic talks to deterrence measures, and a stronger Allied presence in the Arctic, as US Secretary of State Marco Rubio prepares to discuss the issue with Danish leaders next week.
COMMISSION REVISES ETS STATE AID GUIDELINES TO ADDRESS CARBON LEAKAGE RISKS
The Commission has amended the State aid Guidelines of the EU Emissions Trading System (ETS), in an attempt to rebalance its green transition goals with maintaining a level playing field for the European industry. Following several years of higher ETS prices, more sectors exposed to international competition are now considered at risk of relocating production outside the EU. In response, the Commission has expanded the list of eligible industrial sectors, including parts of the chemicals, glass and batteries industries, raised the maximum aid intensity from 75% to 80% for existing beneficiaries, and eased investment requirements for large recipients.
‘COALITION OF THE WILLING’ PLANS SECURITY GUARANTEES FOR UKRAINE
Meeting in Paris, the ‘Coalition of the Willing’, bringing together the EU, Ukraine, the United States and other international partners agreed on a framework of politically and legally binding security guarantees for Ukraine once a ceasefire with Russia is in place. Notably, the package foresees long-term military support, defence-industrial cooperation, a US-led ceasefire monitoring mechanism and a European-led multinational force to help rebuild Ukraine’s armed forces and bolster deterrence. In parallel, the Council prolonged EU economic sanctions on Russia for another six months, maintaining broad restrictions on trade, finance, energy and technology, and added two Russian judicial officials to its human rights sanctions’ regime.
COMING UP NEXT WEEK
- 14 January: College of Commissioners. On the agenda: Cybersecurity Act, Anti-Racism Strategy.
On behalf of the Kreab Worldwide, we wish you a happy New Year!
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