03/10/2025
EU Insight 3 October 2025
Brussels, 3 October 2025
EU LEADERS DISCUSS DEFENCE AND UKRAINE IN INFORMAL EUCO SUMMIT
European leaders met in Copenhagen for an informal European Council summit to discuss defence and support for Ukraine. They reiterated their commitments to defence readiness by 2030, focusing on investments and new flagship projects such as the Drone Wall and the Eastern Flank Watch. EU Heads of State and Government also discussed ongoing financial and military support to Ukraine, the 19th sanctions package, Ukraine’s accession process, and for the first time, using Russian frozen assets for Ukraine’s reparation loans. The talks took place against a backdrop of recent airspace violations and drone incursions by Russia in several Member States. EU leaders plan to reconvene later this month to continue their discussions, a meeting which European Council President Costa described as ‘decision time’ for the continent’s defence and security.
COMMISSION PRESENTS SAVINGS AND INVESTMENT ACCOUNTS & FINANCIAL LITERACY STRATEGY
In a move to advance the Savings and Investment Union, the Commission presented its financial literacy strategy and a new blueprint for savings and investment accounts. The strategy aims to empower individuals to make more informed financial decisions, with the overarching goal of increasing retail participation in capital markets. It outlines a vision for the future of financial education policy across the EU, notably through awareness raising, national coordination, and funding tools for financial literacy initiatives. As for the recommendation, the Commission advices Member States to facilitate citizens’ access to savings and investments accounts as much as possible, encouraging the widest array of investment options available in the market, along with reliable and user-friendly interfaces for retail investors.
COUNCIL ADOPTS FINAL TEXT SIMPLIFYING CBAM
After months of negotiations and following the Parliament’s adoption in plenary last month, the Council formally adopted the Commission’s proposal to simplify the so-called carbon tax, the Carbon Border Adjustment Mechanism (CBAM). As part of the first Omnibus package, the review aims at reducing the regulatory and administrative burden and compliance costs for European small and medium companies, considering CBAM’s high climate ambitions. The text notably introduces a mass-based threshold whereby imports up to 50 tonnes per importer per year exempt from CBAM. It also provides more time for importers to submit their annual CBAM declaration.
COUNCIL ENDORSES MEASURES TO BOOST EU STARTUP & SCALEUP ECOSYSTEMS
EU Research and Innovation Ministers have endorsed new conclusions intended to strengthen conditions for startups and scaleups across the EU, placing emphasis on research and innovation. The latest measures encourage more effective links between universities, research institutions, and the private sector, with the goal of accelerating the commercialisation of research and supporting startups. The conclusions also highlight the need for improved access to funding, a better regulatory framework, and efforts to attract top talent from within and beyond the EU. National authorities are urged to address current problems regarding talent retention and administrative burden, while leveraging EU-wide initiatives and existing innovation networks.
UN AND EU REINSTATE SANCTIONS ON IRAN FOLLOWING NUCLEAR DEAL BREACH
The United Nations’ sanctions against Iran, the so-called snapback mechanism, were reintroduced over the weekend. It follows the decision of the E3, namely France, Germany and the United Kingdom, to trigger the snapback mechanism under the 2015 nuclear deal (JCPOA), after Iran’s suspended its cooperation with the International Atomic Energy Agency. The mechanism requires all UN Members to reimpose the measures, which cover areas such as arm sales, travel bans, asset freezes, banking restrictions, and trade in sensitive goods. The Council of the EU also agreed to reimpose autonomous EU measures, in addition to the UN Security Council resolutions originally lifted in 2015.
COMING UP NEXT WEEK
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