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EU Summit's Agenda Shifted Before the Meeting Began

This Wednesday and Thursday, the European Council, which includes the heads of state and government of the member states, will hold another extraordinary meeting.
The summit, initially called to discuss the European Union's economic competitiveness, now finds itself dominated by the recent developments in the Middle East, particularly in light of Iran's missile strike last Saturday.

Originally, the summit was to focus solely on economic competitiveness and relations with Turkey. However, Tehran's actions and the escalation of Israeli military operations in Lebanon have dramatically shifted the focus towards the Middle East. This diversion is somewhat concerning to the member states' leaders who are also anticipating a report on EU competitiveness prepared by Enrico Letta.

De-Escalating the Situation in the Middle East

Due to the rapid and severe changes in the Middle East, discussions will be held on the current situation. A day before the summit, the member states' foreign ministers engaged in video conference talks to prepare a new set of sanctions against Iran. These sanctions, while symbolic given the long history of restrictions against Tehran since 1979, highlight Iran's continued developments in its military and nuclear program, including its support for Russia against Ukraine.

Emmanuel Macron, the President of France, according to Politico, is particularly targeting Iran's nuclear program. The current draft statement of the gathering aims to encourage Israel to work on isolating Tehran instead of escalating the conflict further. However, given the internal political crisis facing Israeli Prime Minister Benjamin Netanyahu, it's unclear if he will heed the EU's advice, especially considering his previous disregard for similar requests from the United States. The EU remains deeply concerned that Israel's response could potentially lead to a clash between the region’s major powers.

In addition to the situation in Gaza, the leaders will examine Lebanon's condition, aiming to prevent a new outbreak of conflict between Israel and the Hezbollah militant group in Lebanon, a country currently hosting hundreds of thousands of Palestinian and over a million Syrian refugees.

A Closer and Larger European Economy is Needed

The special summit was primarily convened in response to a report by the former Italian Prime Minister, Enrico Letta. His report, which has yet to be officially published, suggests the EU needs tighter economic cooperation among member states to avoid falling further behind the United States and China. Letta's recommendations include integrating the financial, energy, and telecommunications markets of the member states to maintain the EU's economic security.

The report also suggests shifting operations from a national level to a European dimension to remain competitive with companies from the US, China, or India. While specific details on implementation are not disclosed, it suggests that relaxing competition laws or initiating programs for deeper corporate collaboration within the EU could be beneficial.

Some member states, including Hungary, Slovakia, and Italy, might resist this push towards integration, fearing it could lead to political integration and eventually an "European United States."

Letta, in an interview with the Financial Times, emphasized the risk of decline without integration, highlighting the inefficiency of the current single market system when compared to the United States.

Aside from economic issues, the discussion will also cover the Common Agricultural Policy, aiming for a competitive, sustainable, and resilient sector until 2027 and beyond. Topics like strengthening the European economy and manufacturing, opportunities in climate-neutral, digital, and circular economy, and the Capital Markets Union will also be addressed.

Ukraine and Turkey Will Also Be Discussed

The war in Ukraine and its developments, including increased Russian air strikes and new attacks against Ukraine's energy sector, will be on the agenda, potentially revisiting the idea of joint ammunition purchases for Ukraine proposed by Czech Prime Minister Petr Fiala.

Additionally, the summit will review a report on Turkey by EU High Representative for Foreign Affairs and Security Policy, Josep Borrell, discussing political, economic, and trade relations between the EU and Turkey, without prioritizing the Cyprus-Turkey dispute.

The EU member states plan to agree on enhancing cooperation with Turkey, signaling that resolving the dispute between Nicosia and Ankara is not a precondition for improving EU-Turkey relations.
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