EU Insight 28 August 2026

Brussels, 28 August 2026

EU STEPS UP DEFENCE SUPPORT AND USE OF PROFITS FROM IMMOBILISED RUSSIAN ASSETS

The Commission has approved €6.1 billion in new defence procurement for Ukraine under the Ukraine Support Loan, focusing on air and missile defence, ammunition and radars. The decision is intended to accelerate deliveries from European defence companies and brings total approved procurement plans to over €22 billion. In parallel, the EU has received a further €1.4 billion in windfall profits from immobilised Russian central bank assets. Under the agreed framework, most of these proceeds will support Ukraine via the Ukraine Loan Cooperation Mechanism by helping to repay EU and G7 macro‑financial loans, while a smaller share will be channelled through the European Peace Facility to contribute to Ukraine’s short‑term defence needs.

EU STARTS ENFORCING AI ACT AND OPENS €30 BILLION AI GIGAFACTORIES CALL

The Commission’s AI Office and national authorities have begun enforcing the AI Act. New transparency rules now require AI systems to inform users when they are interacting with AI and to clearly indicate when content has been generated or altered, such as deepfakes. The Office also supervises providers of general‑purpose AI models, including those that may pose systemic risks, and has launched complaint and whistleblower tools to support enforcement. In parallel, the EU has opened a call for tenders to set up seven AI Gigafactories across Member States. Backed by up to €10 billion in public funds and expected to mobilise at least €20 billion in private investment, the facilities aim to expand AI computing capacity for European firms and researchers.

COUNCIL PRESIDENT VISITS EU CAPITALS AMID LONG-TERM BUDGET TALKS

European Council President António Costa is visiting EU leaders in their capitals over the coming weeks as part of his annual ‘Tour des Capitales’. This year’s round of meetings will cover defence, competitiveness, EU enlargement and continued support for Ukraine. They are intended to give Costa a clearer picture of national positions ahead of key discussions in Brussels. The bilateral visits will feed into preparations for upcoming European Councils and international summits, where leaders must agree the next multiannual EU budget for 2028–2034. The tour is therefore expected to focus heavily on how to balance spending priorities such as agriculture, cohesion, green and digital investment, and defence, while keeping national contributions and possible new EU revenue sources within politically acceptable limits.

SCALEUP EUROPE FUND BEGINS INVESTING IN EU COMPANIES

The Commission finalised the last steps to establish the Scaleup Europe Fund, a public-private investment vehicle aiming to mobilise around €5 billion for fast‑growing European firms. Sweden‑based EQT has been appointed investment manager and will take decisions on a commercial basis under the umbrella of the European Innovation Council Fund. The fund will invest across critical technology areas including artificial intelligence, quantum technologies, biotechnology, and clean energy. An initial group of public and private investors has already pledged capital, and the Commission will continue fundraising to reach the fund’s target size. With first transactions expected in the weeks ahead, the initiative is intended to help promising EU companies access larger growth‑stage financing without relocating abroad.

EU SATELLITE NETWORK MOVES INTO DEPLOYMENT PHASE

The Commission and the SpaceRISE consortium have signed an implementation agreement for IRIS², the EU’s secure satellite connectivity programme, moving it from design to deployment. The deal confirms an expanded constellation of 348 satellites in low and medium Earth orbit and strengthens capacity for government users. A roadmap is now in place to reach first launches by 2029, covering satellite manufacturing, launch services and ground infrastructure. Once operational, IRIS² is expected to provide secure, resilient connectivity for European governments, defence and security services and emergency responders. The programme will be financed from the EU budget for 2028–2034 together with additional national funding, with several Member States already announcing sizeable contributions to help keep the programme on track.

COMING UP NEXT WEEK

• 31 August – 1 September: Informal meeting of defence ministers.
• 1-2 September: Informal meeting of foreign affairs ministers.
• 3-4 September: Informal meeting of the General Affairs Council.
• 4 September: College of Commissioners. On the agenda: College seminar.