16/05/2025
EU Insight 16 May 2025
Brussels, 16 May 2025
PUTIN SKIPS TURKEY TALKS AS KYIV RECEIVES WAVE OF INTERNATIONAL SUPPORT
Hopes for serious peace talks in Turkey faded this week when Russian President Vladimir Putin failed to attend high-level negotiations with his Ukrainian counterpart, President Zelenskyy, leaving only a decorative Russian delegation in Istanbul. The diplomatic setback coincided with a series of moves, highlighting the international community’s backing for Ukraine. In Brussels, the second EU-Ukraine Defence Industry Forum took place, deepening defence ties and unlocking €1.4 billion for Ukraine’s armaments sector. The European Commission also pledged an extra €3 billion to help EU countries host Ukrainian refugees under the new Pact on Migration and Asylum. Meanwhile, a global coalition led by the EU endorsed plans to establish a new special tribunal to prosecute Russia’s crime of aggression against Ukraine, aiming to hold Moscow’s leadership accountable.
EU LAWMAKERS BACK TARIFF HIKE ON RUSSIAN GOODS, RETHINK UKRAINE TRADE PERKS
The European Parliament’s International Trade Committee has backed a 50% tariff on Russian and Belarusian agricultural imports, alongside a new 6.5% duty on fertilisers. These measures are intended to reduce reliance on these countries and cut revenue that could fuel Russia’s war in Ukraine. Meanwhile, the European Commission is considering rolling back wartime trade benefits for Ukraine by reinstating pre-war tariff quotas on eggs, poultry, maize, dairy, and more. While Kyiv is urging Brussels to extend the current zero-tariff regime beyond its 5 June expiry, pressure is mounting from countries like France and Poland, which are calling for tighter controls to shield their domestic farmers.
COMMISSION MOVES TO EASE PRESSURE ON FARMERS WITH SIMPLER EU AGRI RULES
As part of its broader simplification agenda, the Commission has unveiled plans to cut red tape in the EU’s farm policy, hoping to lighten paperwork and financial strains for farmers and rural communities. Responding to mounting frustration across the sector about complex regulations and high costs, the proposal includes easier payment systems for small farmers, simplified environmental standards, reinforced support for crisis situations, and new initiatives for modernising rural businesses. The Commission estimates these reforms could free up to €1.58 billion a year for farmers, plus €210 million in national savings. If approved by the Parliament and Member States, the updated rules promise quicker access to funding and fewer administrative hurdles for millions of European farmers.
PARLIAMENT COMMITTEE SUPPORTS RED TAPE CUT FOR EU CARBON BORDER TAX
The European Parliament’s Environment Committee endorsed measures to simplify the EU’s Carbon Border Adjustment Mechanism (CBAM), a scheme designed to even out the cost of carbon emissions between European and foreign companies. Lawmakers backed a new ‘de minimis’ threshold, which would exempt most small or occasional importers from CBAM requirements. The move intends to ease the burden on thousands of businesses without weakening the climate rule’s impact. The plan also includes less red tape for emissions declarations and import authorisations. As the EU seeks to balance climate protection with competitiveness, the Parliament is set to vote next week on its position, paving the way for negotiations with Member States.
EUROPE’S ENERGY GRID MODERNISATION IN SPOTLIGHT AFTER IBERIAN BLACKOUT
Last month’s blackout that plunged Spain and Portugal into darkness is fuelling calls in Brussels to modernise Europe’s fragile electricity networks. This week, the Parliament’s Industry Committee backed plans for a continent-wide grid update, intended to bolster resilience and support the EU’s shift to renewables. Lawmakers warn that unless outdated infrastructure gets needed attention and private finance, Europe’s clean energy ambitions are at risk. Notably, the MEPs called for an EU-grid action plan that brings infrastructure upgrades, new cross-border links, and clear rules to attract private investors. The report, which also stresses the importance of winning public support for new grid projects, is set for a vote in plenary in mid-June.
COMING UP NEXT WEEK
- 19 May: EU-UK Summit.
- 20 May: Foreign Affairs Council and Foreign Affairs Council (Defence). On the agenda: EU support to Ukraine, defence readiness, and Russia’s war against Ukraine.
- 20-21 May: Informal meeting of ministers responsible for cohesion policy. On the agenda: Territorial agenda of the EU 2030, sustainable urban development, and regional policy.
- 21 May: College of Commissioners. On the agenda: Single Market Union, Fourth Omnibus on small mid-caps.
- 21-22 May: Parliament Plenary Session. On the agenda: Carbon Border Adjustment Mechanism, Single Market Strategy, Net Stable Funding Ratio.
- 22 May: Competitiveness Council. On the agenda: Boosting competitiveness, cutting red tape, single market strategy, public procurement.
- 23 May: Competitiveness Council (Research and space). On the agenda: Horizon Europe, artificial intelligence in science, and satellite data.
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