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The Guardian - UK
The Guardian - UK
World
Lili Bayer in Brussels

EU leaders says eurozone has shown ‘remarkable resilience’ as they discuss Ukraine, migration and the economy – as it happened

President of the European Commission Ursula von der Leyen arrives for the EU summit in Brussels.
President of the European Commission Ursula von der Leyen arrives for the EU summit in Brussels. Photograph: Xinhua/Shutterstock

Summary of the day

  • Heads of state and government from the EU’s 27 member states met for a second day in Brussels. Talks focused on Ukraine and the economy.

  • Multiple leaders spoke out on the need to keep prioritising assistance to Ukraine, despite geopolitical turbulence elsewhere. “We are determined to repeat and to recall that our support for Ukraine is steadfast for as long as it takes,” said the European Council president, Charles Michel.

  • In their summit conclusions, the leaders said the bloc “will continue to provide strong financial, economic, humanitarian, military and diplomatic support to Ukraine and its people for as long as it takes.”

  • On the thorny issue of Russia’s frozen assets, the leaders said “decisive progress is needed” and they called on the European Commission to “accelerate work with a view to submitting proposals” on how revenues held by private entities stemming directly from Russia’s immobilised assets could be channelled to support Ukraine.

  • In a summit session, leaders said: “Our economies have shown remarkable resilience in the face of numerous economic shocks and continue to grow, albeit with reduced momentum,” noting that “inflation remains a key concern.”

  • Slovakia’s Robert Fico said Ukraine was among the most corrupt countries in the world and funding for Kyiv was conditional on guarantees that European money will not be embezzled. He also asked for part of funding for Ukraine to help Slovakia.

  • Hungary’s Viktor Orbán said he rejected plans for financial assistance to Ukraine in their current form.

  • Germany’s Olaf Scholz said he had “the impression that we will decide what is necessary for Ukraine’s financial stability” and that “I don’t think that the partly different concrete assessments will affect that”.

  • Addressing Orbán’s controversial meeting with Vladimir Putin, France’s Emmanuel Macron said EU member states must not undermine their policy on Ukraine and any such meeting must have prior coordination with EU member states.

  • Estonia’s Kaja Kallas said she was “very concerned” about last night’s discussions on amending the EU’s long-term budget.

Updated

Scholz confident EU will do what's needed for Ukraine's financial stability

The German chancellor, Olaf Scholz, expressed confidence that the EU would make the necessary decisions to ensure stability in Ukraine, Reuters reported.

“I have the impression that we will decide what is necessary for Ukraine’s financial stability,” the chancellor said after the summit in Brussels. “And I don’t think that the partly different concrete assessments will affect that.”

Updated

Petr Fiala, the Czech prime minister, said he had “managed to push through several important things that are crucial for us” at the summit.

My fundamental demand was that the European Council should make it clear who the aggressor is and confirm that it stands behind Israel and its right to self-defence. The debate was long, but in the end I managed to get all our key demands into the text of the conclusions. The European Council recognised Israel’s right to self-defence, condemned Hamas attacks and its practice of using civilians in Gaza as human shields. It also called for the immediate release of all hostages.

We also succeeded in pushing for a strong emphasis that EU humanitarian and development aid must not be misused by terrorists and that all funds must be strictly controlled.

We have also managed to force a reference to the need for non-proliferation of disinformation into the text. This conflict is also an information war, as the disinformation about the explosion in the Gaza hospital last week showed.

Updated

Despite hours of debate last night that led to a compromise calling for “pauses” in the Middle East, the Maltese leader Robert Abela said after the summit that he had conveyed a “message towards a ceasefire”.

Updated

We’re all ready for the weekend.

Here’s a photo of Charles Michel and Ursula von der Leyen walking across the journalists’ area in the council after their press conference.

Ursula von der Leyen and Charles Michel after the EU leaders’ summit
Ursula von der Leyen and Charles Michel after the EU leaders’ summit Photograph: Lili Bayer/The Guardian

Updated

Leaders call for enhanced security following terror attacks

In their summit conclusions, the EU’s 27 heads of state and government underscored the need for enhancing security arrangements after recent terrorist attacks in France and Belgium. They said:

The European Council strongly condemns the recent terrorist attacks in France and Belgium killing and injuring Swedish and French nationals. The European Union stands united and firm in the fight against terrorism, hatred and violent extremism of all kinds.

The European Council calls on the institutions and member states to engage in concerted efforts to mobilise all relevant policy areas at national and EU level to enhance internal security, including by strengthening law enforcement and judicial cooperation, information exchange through the full use of relevant databases, protection of the external borders, fight against smugglers and close cooperation with third countries.

Updated

The European Commission president, Ursula von der Leyen, has reiterated Emmanuel Macron’s message to the Hungarian leader, Viktor Orbán, over his recent controversial meeting with Vladimir Putin.

The approach of the leaders was, in general, a leader is sovereign and free to choose his or her discussion partners. But what you need is close coordination. And what we need is transparency. If the content of the discussion affects the European Union, and the unity in the European Union – that was a general message that was sent.

Updated

Summit conclusions published

The European Council’s formal conclusions are now public.

On Ukraine, leaders declared:

The European Union will continue to provide strong financial, economic, humanitarian, military and diplomatic support to Ukraine and its people for as long as it takes.

On the sensitive issue of Russia’s frozen assets and how to pay for Ukraine’s reconstruction, the leaders said:

Russia is responsible for the massive damage caused by its war of aggression against Ukraine. Decisive progress is needed, in coordination with partners, on how any extraordinary revenues held by private entities stemming directly from Russia’s immobilised assets could be directed to support Ukraine and its recovery and reconstruction, consistent with applicable contractual obligations, and in accordance with EU and international law. The European Council calls on the high representative and the commission to accelerate work with a view to submitting proposals.

Updated

Macron on Orbán-Putin meeting: Europe should coordinate

Emmanuel Macron has condemned Viktor Orbán meeting with Vladimir Putin. The French leader said EU member states must not undermine their policy on Ukraine and any such meeting must have prior coordination with EU member states.

He said part of being in the EU meant there were certain “constraints” and no member state should take action that weakened the bloc.

“There’s absolutely no need to prohibit a head of state or government from going in one direction or another. It doesn’t shock us,” Macron said of Orbán’s recent meeting with Putin.

“What I am asking, out of respect and loyalty, is that we coordinate beforehand and coordinate afterwards and that, especially in the situation we are in with Russia, we do not use these bilateral contacts to negotiate things about ourselves that would weaken our unity. I don’t have any moral or behavioural lessons to give to any prime minister, and in particular to prime minister Orbán.

“I’m not judging what he’s done. I think it could be useful, who knows, at some point. I’m just saying that we mustn’t let it weaken us. I think that since the start of the war in Ukraine, our strength has been to have been united, to have been quick and to have held a line.”

He added: “Brussels did not invade Hungary or the European Union. Hungary made a sovereign decision to join our Europe. It has benefited greatly from this and has benefited from it since it joined. And the Hungarian people have had a much better life since they joined our Europe, but it was a sovereign choice.”

“It’s easy to say it’s Europe … But if we confuse a sovereign choice with an act of military domination, if that’s what it is, then it’s a confusion of minds. This is a serious contradiction. I want to condemn it once again and make it very clear. I can tell you what I said to Viktor Orbán publicly around the table: first of all, I respect all the heads of state and government around the table and they have this sovereignty.

“They have different sensitivities, which they express, but in fact they do not detract from the continuity of our action today. I think we have to respect these sensitivities if we are to maintain unity within the law. We have to listen to their arguments sometimes.”

Updated

Europe's focus continues to be supporting Ukraine, von der Leyen says

The European Commission president, Ursula von der Leyen, said after the summit that it was important for the bloc to continue building on its strengths, and emphasised continued support for Kyiv.

Europe must address youth unemployment and female participation in the workforce, she said, calling for “reconciliation” of work and family. Von der Leyen also said there was a need for more legal migration. And the bloc needed to make sure it had a level playing field for its companies, she said.

On Ukraine, she said:

It was very clear in the debate, despite the geopolitical tensions in the Middle East, our focus continues to be on supporting Ukraine … We will continue delivering the much-needed weapons and ammunition. We will continue providing the much-needed financial relief.

The next step, she said, would be the proposed €50bn package for Ukraine.

The EU is now consulting with member states on the next sanctions package targeting Russia, Von der Leyen said, noting that the bloc was looking in particular at how to cut the remaining revenues Russia draws from the export of diamonds.

The commission would present a proposal on how to use the proceeds from Russian assets, she said, adding that the idea was to pull windfall profits and channel them via the EU budget to Ukraine.

Updated

The French president, Emmanuel Macron, has warned that Europe’s communities must remain united against radicalisation of all sorts to avert the import of conflict from the Middle East.

“We are the country in Europe with the largest Muslim community. We are also the country with the largest Arab-Muslim community in Europe. If we import the conflict, if we allow the extreme voices with all the shortcuts to carry the public debate, we will diffuse ourselves unnecessarily,” he said.

“Personally, I’m in favour of having a discussion,” he added.

Updated

Speaking after the EU leaders’ summit, the European Council president, Charles Michel, told reporters that Ukraine would remain a priority for the bloc.

Updated

Summit over

The summit is officially over. Stay tuned for leaders’ reactions.

Fico calls Kyiv corrupt, says Slovakia should benefit from Ukraine aid

Slovakia’s new prime minister, Robert Fico, has told other EU leaders that the proposed €50bn in EU aid to Ukraine should include guarantees that the funds would not be misappropriated, his office said on Friday.

“Ukraine is among the most corrupt countries in the world and we are conditioning what is excessive financial support on guarantees that European money (including Slovak) will not be embezzled,” Fico said in a statement.

Fico, who did not refer to the reforms Ukraine has undertaken as part of its bid to join the EU, was appointed PM earlier this week, having pledged in his election campaign to end military support for Ukraine and criticised sanctions on Russia.

He said part of any EU support to Ukraine should go to renewing Slovakia’s infrastructure along its eastern border with Ukraine as well as support for Slovakian companies in the restoration of Ukraine.

Fico said he was ready to support increasing Slovakia’s contribution to the EU’s budget by €400m over the next four years, even though the country’s finances were “devastated”.

Updated

Meanwhile, the EU is accelerating Gaza aid efforts via its humanitarian air bridge to Egypt.

Updated

EU leaders are still discussing Ukraine.

Brussels leaders 'not good enough', Orbán says

The Hungarian prime minister, Viktor Orbán, said there was a “very big battle” regarding funding for Ukraine last night, and that Hungary rejected the European budget proposal that is now on the table.

Speaking this morning on Hungary’s state-controlled Kossuth Rádió, Orbán said he saw no reason to spend Hungarian taxpayers’ money on Ukraine.

“Whatever we do, before we spend our money, we need a clear strategy on what we want to achieve,” he said, adding that Brussels’ strategy in Ukraine had failed.

He said the EU’s leaders were “not good enough” for these times. “Change is needed in Brussels,” he added.

Viktor Orbán shakes hands with Ursula von der Leyen
Viktor Orbán shakes hands with Ursula von der Leyen in Brussels on Thursday. Photograph: Ludovic Marin/AFP/Getty Images

Updated

Inflation remains key concern, leaders say

Following a discussion on the eurozone, leaders said in a statement that “our economies have shown remarkable resilience in the face of numerous economic shocks and continue to grow, albeit with reduced momentum”. They said:

Inflation remains a key concern and it is essential that the disinflation process continues. We remain united in our steadfast determination to increase the resilience and competitiveness of our economies.

Updated

Leaders move on to Ukraine discussion

The Euro summit part of the day has ended, and leaders are now discussing Ukraine.

While European leaders were meeting yesterday with a strong focus on presenting a united front to the world on foreign policy, Hungary’s foreign minister was hanging out with his Russian and Belarusian counterparts.

Luxembourg’s Xavier Bettel, a big personality in European summits, says goodbye at his last European Council.

Europe's leaders face big debate on budget

One big debate facing Europe’s leaders over the coming weeks is the future of the bloc’s finances.

Decisions about the extra budget needed between now and 2027 won’t be taken until the next summit in December, but expect a bumpy ride between now and then.

In basket A is a proposed €50bn. This is for Ukraine, of which €17bn is cash and €33bn in loans.

There was broad support for the €17bn for Ukraine during the discussion at the summit last night with just two countries – Slovakia and Hungary questioning it, say insiders.

The newly elected Slovakian prime minister Robert Fico said he couldn’t agree to further military spend or sanctions until he had completed a full impact assessment on how it would impact his own finances.

The fund needs unanimous support for a top up but Estonian prime minister Kaja Kallas yesterday pointed out to reporters that Hungary often said one thing to the media and did another thing behind closed doors.

In basket B is €50bn needed to top up the EU budget to cover extra costs on migration, competitiveness and relief for climate emergency disasters including floods and wildfires.

Sources say two states – Denmark and France – have found large quantities of money down the back of the sofa with studies showing between €15bn and €20bn unused in various sectors of the EU.

With a cost of living crisis and ministers in each country under pressure to balance the books, expect lots of resistance over this in the coming weeks.

Updated

Discussion begins

European leaders have started their discussion for the day, focusing first on the economy.

EU needs to fulfil promises to Kyiv, Latvian leader says

Latvia’s prime minister, Evika Siliņa, told reporters this morning “we must show endurance on support for Ukraine, because we have to … fulfil promises that we have given before.”

She said the regime of Belarus’ Alexander Lukashenko “is continuing instrumentalisation of migrants on our external borders.”

We have to fight against smugglers, because it’s a question of security of Europe – and illegal migration is not just an issue of national countries, it’s a question of security of all Europe.

Economies beginning to change, Eurogroup president says

Arriving at the summit, Eurogroup president Paschal Donohoe said that he and European Central Bank president Christine Lagarde will be giving leaders a presentation on the performance of the European economy.

Donohoe told reporters:

The main strands that we’ll be emphasising are firstly the importance to get agreement on fiscal rules within the European Union, and the need for that agreement to be reached by the end of the year. Secondly, we will be pointing to how the economic performance is still strong, but clearly the world is changing. At the moment, economies are beginning to change, they are beginning to slow down, and we need to keep the gains that we have made. And then finally, we’ll be updating the leaders on work that we are doing at the moment in relation to banking union, capital markets union and the development of the digital euro.

Updated

Don’t lose focus on Ukraine, Varadkar says

Irish leader Leo Varadkar said when arriving at the second day of the summit that one priority is tackling inflation.

When it comes to the eurozone, main priority is inflation – bringing inflation down so that we can stabilise the cost of living and hopefully over the course of next year start seeing interest rates coming down against. And I think that’s a realistic prospect, but that’s going to depend on price developments in the period ahead.

Varadkar also stressed the need to focus on Ukraine.

I think it’s really important that one of the outcomes of this meeting is that we don’t lose focus on Ukraine. Because of all the other things that are happening in the world, and not least in the Middle East, it would be very easy to lose focus on the war in Ukraine – and essential that we don’t do that.

Ireland's Prime Minister Leo Varadkar speaks with the media as he arrives for an EU summit at the European Council building in Brussels, Friday, Oct. 27, 2023.
Ireland's Prime Minister Leo Varadkar speaks with the media as he arrives for an EU summit at the European Council building in Brussels, Friday, Oct. 27, 2023. Photograph: Virginia Mayo/AP

Updated

EU leaders 'determined' to show 'steadfast' support for Ukraine, Michel says

Arriving at the summit, European Council president Charles Michel said he expects leaders to show they are united.

We’ll discuss the economic situation, we’ll have the euro summit – it’s very fundamental for all of us to make sure that we have a European competitiveness, that we are able to protect our jobs across the EU, to develop our economies, to use climate change and digital transformation as a tool, as a strategy for more growth.

Leaders will also discuss Ukraine, he said.

We are determined to repeat and to recall that our support for Ukraine is steadfast for as long as it takes.

The western Balkans, Sahel and migration are also on the agenda, he said.

Michel said there is broad support for financial assistance to Ukraine. Asked about Hungary and Slovakia – which has qualms about funding for Kyiv- the Council chief said the EU needs to make sure decisions are made by consensus and that the function of summits is to make sure leaders convince, argue and at the end find unity.

European Council President Charles Michel speaks as he holds a joined press conference with European Commission President Ursula von der Leyen (off frame) during a European Union summit, at the EU headquarters in Brussels, on October 27, 2023.
European Council President Charles Michel speaks as he holds a joined press conference with European Commission President Ursula von der Leyen (off frame) during a European Union summit, at the EU headquarters in Brussels, on October 27, 2023. Photograph: Kenzo Tribouillard/AFP/Getty Images

Updated

'Very concerned' about EU's finances, Estonian leader says

Estonia’s prime minister, Kaja Kallas, said when arriving for the second day of the summit that she was “very concerned” about last night’s discussions about amending the EU’s long-term budget.

“We have to consider the crisis that we have ongoing right now,” she said, noting that when the budget was originally negotiated “we didn’t foresee the pandemic, but we also didn’t foresee the war – and now we are in the situation where we actually have to invest more in defence.”

But why I’m worried is that I didn’t hear that the other colleagues thought that this is the major challenge that we have in Europe right now.

Kallas also criticised state aid because “in the end even rich countries will run out of taxpayers’ money to subsidise their companies.”

Europe, she insisted, needs to address competitiveness.

Estonian Prime Minister Kaja Kallas arrives at EU Leaders Summit on October 26, 2023 in Brussels, Belgium.
Estonian Prime Minister Kaja Kallas arrives at EU Leaders Summit on October 26, 2023 in Brussels, Belgium. Photograph: Pier Marco Tacca/Getty Images

Welcome to the blog

Good morning and welcome back to the Europe blog, where we will be focusing on day two of the EU leaders’ summit in Brussels.

Heads of state and government from 27 EU governments will discuss migration, Ukraine and the economy today, after a long discussion last night on the Middle East and the bloc’s long-term budget.

Send tips and comments to lili.bayer@theguardian.com.

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