US secretary of state Marco Rubio described NATO’s July gathering in Ankara, two months before it convened, as “one of the more important leaders’ summits in [its] history.” The summit confirmed that Europeans have accepted America’s expectation that they do more for their own security. The Ankara declaration recognised that “European allies and Canada, working together with the United States, are assuming greater responsibility for the alliance’s defence.” Accepting that shift is one thing; paying for it is another. For European policymakers the question is now fiscal. It turns on what Europe is willing to pay for. And for the EU’s frugal members, that means rethinking what they treat as strategic.
According to the International Institute for Strategic Studies, replacing US military capabilities in Europe could require around $1tn (about €900bn) in extra investment. NATO’s new target to invest 5% of GDP in defence similarly implies a sustained increase in European defence spending over the coming decade. Together they suggest that defence is no longer crisis spending but a permanent claim on European budgets.
Since Russia’s full-scale invasion of Ukraine in 2022, the EU has found money for defence, but always as extraordinary spending. The European Defence Fund and SAFE (Security Action for Europe, a loan scheme for joint arms purchases), for example, sit outside the ordinary budget. Such instruments expire; the challenge is to embed this spending into the EU’s regular budget. Winning defence a permanent line in it makes negotiations over the next Multiannual Financial Framework (MFF) far more than another exercise in budgetary bargaining.
The MFF is the EU’s seven-year budget—and where any pledge on defence would have to show up in funds. The commission’s proposal for 2028–34 reflects such a commitment. It allocates €131bn to defence and space, roughly five times the current level, and puts security among the EU’s central priorities.
Commission proposals rarely emerge intact from negotiation, and early signs suggest this pattern may repeat itself.
Commission proposals rarely emerge intact from negotiation, however, and early signs suggest this pattern may repeat itself. Cyprus, which held the presidency until the end of June, left a negotiating box on how to structure the next MFF that envisioned reductions in defence and security while protecting cohesion policy and the Common Agricultural Policy (CAP). The box is the presidency’s draft compromise, the text the final deal is built from. The Irish presidency has opened with a strong focus on competitiveness and security, but Ireland leans heavily on farming too.
Budget negotiations are shaped by coalitions that defend long-established spending. The 16 member states of the “Friends of Cohesion” group, Spain, Italy and Poland among them, want robust funding for cohesion policy and agriculture, while frugal member states, such as Germany, the Netherlands and Sweden, are reluctant to expand the overall size of the EU budget. Defence enters as a comparative newcomer against policies with decades of institutional backing and organised constituencies behind them.
Germany’s position illustrates this dilemma. In a parliamentary inquiry, Alliance 90/The Greens asked the federal government how the EU can square four things at once: from 2028 it will need to start repaying NextGenerationEU, the €637bn joint borrowing agreed as a one-off in 2020 to fund members’ recovery from covid-19; forgo new revenue of its own (levies it collects directly rather than cheques from national treasuries); hold its budget roughly the same size; and still strengthen competitiveness, security and defence. The chancellor, Friedrich Merz, has repeatedly committed to the last three. The government answered that the EU could meet all three objectives by trimming across the whole budget. Yet such “horizontal cuts” only protect these priorities if all 27 members agree what to spare when deciding the cuts, and they are unlikely to agree. Other member states could favour different areas of the EU budget, cutting competitiveness or security harder than Germany intends.
The scale of investment required to deliver Europe’s defence transformation also exceeds what can realistically be financed through the MFF alone. While the seven-year budget can establish political priorities, provide long-term planning certainty and support common capability development, it cannot generate the sums required to finance Europe’s long-term defence.
Hence the appeal of joint EU borrowing: debt raised by the commission against member-state guarantees, the model already used for NextGenerationEU and SAFE. NextGenerationEU demonstrated that the EU can raise substantial resources when confronted with an existential crisis such as the covid-19 pandemic. Europe’s security has changed just as fundamentally, which makes the case for borrowing together just as strong. If defence is a collective problem, leaving the bill to strained national budgets makes little sense. However, borrowing on that scale is politically out of reach: creditor states intend NextGenerationEU to stay an exception rather than a template. Something narrower—bonds (or comparable fiscal mechanisms) that fund defence alone or the technologies Europe cannot do without may prove necessary if the EU wants to match its strategic ambitions with adequate financial resources.
Europe has accepted that it must carry more of its own defence. The MFF negotiations will show whether its budget can pay for it. With NATO entering a new era of European burden-sharing, the EU cannot afford a budget that reflects the priorities of a different geopolitical age. The world has moved on—it is time that frugal member states like Germany did so, too.
On Ukraine Independence Day (24 August), the European Commission approved €6.1 billion in new defence procurement for Ukraine. This funding covers air and missile defence systems, missiles, ammunitions and radars, reaffirming Europe's commitment to supporting Ukraine's defence and resilience against Russia's ongoing aggression.
Ursula von der Leyen, president of the Commission: “On Ukraine's Independence Day, Europe shows our support is unfaltering and concrete. Today, we have approved €6.1 billion for the air and missile defence systems, missiles, ammunition and radars that Ukraine urgently needs. As Russia intensifies its attacks, we are stepping up to help Ukraine protect its people and defend its skies. Europe stands with Ukraine and we will deliver what it needs, when it needs it.”
The funding, part of the €90 billion Ukraine Support Loan (UASL), comes as Russia escalates attacks with ballistic missiles and drones. With 376 missile strikes recorded in July alone, reinforcing Ukraine's defences has become increasingly urgent.
The approval adds to €16 billion in already approved procurement plans, of which €8.35 billion has been disbursed, ensuring Ukraine receives critical supplies on time and at the required scale.
Most procurements will source products from EU defence companies. Given Russia's intensified use of ballistic missiles and jet-engined drones, the Commission emphasises the need for a significant increase in EU deliveries through destocking, reprioritising orders and ramping up the production.
Ukraine's ability to defend itself depends on the rapid availability of critical defence products. The UASL provides €30 billion for budgetary aid and €60 billion for defence across 2026-2027, including €28.3 billion in 2026 to strengthen Ukraine's defence industrial capacity.
Ukraine can request payments by submitting contracts signed with defence companies. The Commission will review these contracts before disbursing funds to ensure the financial assistance is used for the procurements agreed with Member States and the Commission.
In February 2026, the European Parliament and the Council adopted Regulation (EU) 2026/467, establishing the Ukraine Support Loan, providing up to €90 billion in support to Ukraine. This support has two complementary components: strengthening Ukraine's defence capabilities and defence industrial capacities, and support to maintain essential state functions, public services and economic resilience.
Following Ukraine's submission of its Financing Strategy in March 2026, the Council adopted an implementing decision on 23 April 2026, allocating up to €45 billion for 2026. This includes €16.7 billion in budget support, split equally between the Ukraine Facility and Macro Financial Assistance, with each amounting to up to €8.35 billion, and €28.3 billion for defence industrial capacities.
The defence component focuses on reconstructing and modernising Ukraine's defence technological and industrial base, while supporting its gradual integration into the European Defence Technological and Industrial Base.
All funding decisions respond to Ukraine's evolving needs and are subject to agreed conditions and monitoring. Since 2022, the EU and its Member States have provided €220.2 billion in overall support to Ukraine, including €3.8 billion from the proceeds of immobilised Russian assets.
Regulation (EU) 2026/467 - Ukraine Support Loan for 2026 and 2027
Commission implementing decision validating the use of derogations for drones in Ukraine
Macro-Financial Assistance to Ukraine
On 24 August, the Commission adopted its proposal for the 2027 fishing opportunities for the Baltic Sea. The proposal sets the total allowable catches (TACs) and quotas for the ten EU-managed fish stocks in the Baltic Sea: Bothnian herring, central Baltic herring, Gulf of Riga herring, sprat, plaice, Main Basin salmon, Gulf of Finland salmon, western Baltic cod, eastern Baltic cod, and western Baltic herring.
It responds to scientific assessments that highlight the critical state of several fisheries and allows for continuing the rebuilding trajectories for relevant stocks.
The Commission proposes to increase fishing opportunities for Bothnian herring (+3%), central Baltic herring (+49%), Gulf of Riga herring (+11%) and sprat (+44%). Catches of plaice, salmon in the Main basin and in the Gulf of Finland would remain unchanged compared to this year. In addition, based on the latest reporting by Member States, the Commission proposes to reduce the allocations of unavoidable by-catches – fish unwantedly caught by fishers - of western Baltic cod (-88%), eastern Baltic cod (-51%) and western Baltic herring (-45%).
These proposed TACs are based on the best available scientific advice from the International Council on the Exploration of the Seas (ICES) and follow the Baltic Sea multiannual management plan adopted in 2016 by the European Parliament and the Council.
Cod
For eastern Baltic cod, the Commission has proposed to keep a catch limit for unavoidable by-catches and all the accompanying measures in place already for several years. However, since the stock continues to be in bad condition, the by-catch limit should be adjusted, based on the number of by-catches reported by each Member State in 2025. Despite the measures taken since 2019, when scientists first warned about the poor status of cod, the situation has not improved.
The situation is similar for western Baltic cod. The Commission therefore proposes to adjust the by-catch TAC to address a deteriorated condition of the stock, and to keep all the accompanying measures.
Herring
The stock size of western Baltic herring remains significantly below minimum levels. The Commission proposes removing the exemption for small-scale coastal fisheries and adjusting the TAC to unavoidable by-catches only.
The stock size of Bothnian herring is larger than previously estimated but still below sustainable levels. With the maximum catch levels contained in the ICES advice, the stock size would continue to decrease. In order to continue the rebuilding trajectory, the Commission proposes a TAC level which keeps the fishing mortality rate stable and increases the stock size. The Commission also proposes to keep the three-month spawning closure – restricting fishing during reproduction periods - in shallow coastal waters.
The stock size of central Baltic herring has increased but remains below sustainable levels. ICES forecasts a positive stock development due to high estimated recruitment. In order to continue the rebuilding trajectory, the Commission proposes a cautious approach and to set the TAC at the level which keeps the fishing mortality rate stable. In addition, the Commission proposes to keep the three-month spawning closure in shallow coastal waters.
Herring in the Gulf of Riga is healthy, and the Commission proposes to set the catch limits according to the maximum advised by ICES.
Plaice
Scientific advice recommends a slight increase, but the Commission proposes to keep the TAC unchanged due to the bad condition of individual fish. In addition, new measures for flatfish fisheries, including plaice, entered into force last year. These measures will help improve the sustainability of flatfish fishing, notably by reducing unwanted cod by-catches – which still occur frequently.
Sprat
After several difficult years the size of the sprat stock has increased significantly due to recent very high reproduction rates. ICES estimates that the stock will continue to increase. The Commission therefore proposes setting the TAC at the advised maximum and to discontinue the three-month spawning closure.
Salmon
ICES did not publish a new advice for 2027. The Commission therefore proposes to maintain the (by-catch) TAC levels and the accompanying conditions for the two salmon TACs, with the exception of recreational fishing on reared salmon which should stop.
Next steps
Based on these proposals, EU countries will take a final decision to determine the maximum quantities of the most important commercial fish species that can be caught in the Baltic Sea. The Council will examine the Commission's proposal in view of reaching a political agreement during its meeting on 26-27 October 2026. The formal adoption by the Council will follow later in the course of November.
Background
The fishing opportunities proposal is part of the European Union's approach to adjust the levels of fishing to long-term sustainability targets, called maximum sustainable yield (MSY), as agreed by the European Parliament and the Council in the Common Fisheries Policy. The Commission's proposal is also in line with the Multiannual Plan for the management of cod, herring and sprat in the Baltic Sea and with the policy intentions expressed in the Commission's Communication 'Sustainable fishing in the EU: state of play and orientations for 2027'.
The current situation is difficult for fishers as stocks are subject to various pressures which have led to the degradation of the Baltic Sea's biodiversity, such as high nutrient inputs and persistently high levels of contaminants. These stressors, in part, stem from failures to implement EU legislation. Furthermore, the scientific advice also recognises the impact of misreporting of fishing, without being able to quantify it. Misreporting potentially leads to hidden overfishing.
The Baltic Sea is the most polluted sea in Europe. It is affected by biodiversity loss, climate change, eutrophication, past and probably current hidden overfishing, and elevated levels of contaminants such as pharmaceuticals and litter. Concerned about this dire situation, the European Commission organised several editions of the Our Baltic Conferences in 2020, 2023 and 2025 to bring together Ministers from the eight EU countries surrounding the Baltic Sea (Denmark, Germany, Estonia, Latvia, Lithuania, Poland, Finland and Sweden).
For more information
Proposal fishing opportunities Baltic Sea 2027
Table: Overview of TAC changes 2026-2027 (figures in tones except for salmon, which is in number of pieces)
| 2026 | 2027 | |
| Stocks and ICES fishing zones; subdivision | Council agreement (in tonnes & % change from 2025 TAC) | Commission proposal (in tonnes & % change from 2026 TAC) |
| Western Cod 22-24 | 266 (0%) | 31 (-88%) |
| Eastern Cod 25-32 | 430 (0%) | 211 (-51%) |
| Western Herring 22-24 | 788 (0%) | 437 (-45%) |
| Bothnian Herring 30-31 | 55 869 (-16%) | 57 308 (+3%) |
| Central Herring 25-27, 28.2, 29, 32 | 96 463 (+15%) | 143 860 (+49%) |
| Riga Herring 38.1 | 34 367 (-17%) | 28 183 (+11%) |
| Sprat 22-32 | 201 975 (+45%) | 291 590 (+44%) |
| Plaice 22-32 | 10 973 (-3%) | 10 973 (0%) |
| Main Basin Salmon 22-31 | 25 537 (-27%) | 25 537 (0%) |
| Gulf of Finland Salmon 32 | 10 232 (+1%) | 10 232 (0%) |
* Updated on 25 August 2026, at 14:16 CEST
In 2025, the EU’s value of sold production in constant prices increased by 2.9% compared with 2024. This is the first time since 2022 and comes after 2 successive declines in 2023 (-1.5% compared with 2022) and 2024 (-1.9% compared with 2023).
Constant prices are adjusted for inflation by using the prices of a fixed base year (in this article the year 2021) to reflect value changes over time. Current (nominal) prices are measured using the actual prices of goods in the year they are produced.
The EU’s production increased gradually every year in the period 2015-2018. In 2019, the value of sold production registered a small decrease and dropped sharply in 2020 due to the effects of the global pandemic. However, 2021 and 2022 showed increases in production in all the industrial activity groups.
Source datasets: DS-059358, DS-059367 and sts_inpp_a
In nominal terms, the EU’s value of sold production rose from €5 869 billion in 2024 to €6 090 billion in 2025.
This information comes from data on the production of manufactured goods published by Eurostat. The article presents a handful of findings from the more detailed Statistics Explained article on industrial production, which also includes analysis by country and sector.
Looking at the top 5 groups of manufacturing activities, the biggest rise in sold production value in constant prices was recorded in food products; +3.8% compared with 2024 and +11.2% since 2015.
Machinery and equipment recorded the second-highest increase (+3.3%), ahead of motor vehicles, trailers and semi-trailers (+0.6%). Meanwhile, chemicals and chemical products, and fabricated metal products (except machinery and equipment) registered small decreases compared with 2024 (both -1.4%).
Chemicals and chemical products and fabricated metal products (except machinery and equipment) were the only manufacturing groups that observed a decline over the past decade.
Source datasets: DS-059358, DS-059367 and sts_inpp_a
The analysis of the manufacturing activities refers to the division breakdown (first 2-digit level) of the Statistical classification of economic activities in the European Community (NACE). Full names of NACE categories listed in this news item are as follows:
In the second quarter of 2026, the EU recorded a trade deficit of €21.8 billion, as goods imported from non-EU countries (€701.8 billion) exceeded exports (€680.0 billion). This is the first trade deficit registered since the second quarter of 2023, the last of a series of deficits fuelled by soaring energy costs observed between late 2021 and mid-2023.
The deficit in the trade balance was primarily due to an increase in the deficit on energy products (from -€71.3 billion in Q1 2026 to -€101.1 billion in Q2 2026), raw materials (from -€7.9 billion to -€9.4 billion) and other manufactured goods (from -€8.3 billion to -€9.1 billion). Additionally, there was a reduction in the surplus of machinery and vehicles (from €24.9 billion in Q1 2026 to €23.2 billion) and other goods (from €11.6 billion to €9.1 billion).
On the other hand, there were surplus increases for chemicals (from €47.1 billion to €54.0 billion) and food and drinks (from €10.7 billion to €11.5 billion).
Source dataset: ext_st_eu27_2020sitc
Overall, exports increased by 5.4% (+€34.9 billion) and imports by 9.9% (+€63.4 billion) compared with the previous quarter.
Exports and imports had been declining since the second quarter of 2025, a trend that halted in the first quarter of 2026. Those declines had been partly attributed to tariff tensions.
Source dataset: ext_st_eu27_2020sitc
Products are defined according to the standard international trade classification (SITC). The main categories are:
Persistent heat and lack of rainfall in the past two months are affecting summer crops and fodder supply across western and central Europe, according to the latest MARS bulletin of the European Commission's Joint Research Centre (JRC).
The strongest impacts are being reported in France, southern Germany, northern and central Italy, Austria, Czechia, Slovakia, Hungary and western Romania. High temperatures combined with a lack of rain have affected crops and fodder supply, and limited irrigation water has further intensified the stress in several regions.
In Benelux countries, Slovenia and Croatia, hot and dry conditions reduced yield expectations for summer crops, particularly maize. Meanwhile, fodder supply is a concern across large parts of western and central Europe, with persistent heat and drought having reduced pasture availability and biomass accumulation.
Published every month, the JRC MARS bulletin assists the Commission in monitoring agricultural conditions and responding to the difficulties farmers are facing. The Commission remains committed to supporting farmers so they can continue to provide affordable, high-quality food. This is where the Common Agricultural Policy (CAP) plays a key role to make agriculture more resilient and better adapted to climate change by supporting farming practices that strengthen resilience and more sustainable methods. The CAP supports investments in efficient irrigation, climate-resilient infrastructure, water-saving technologies and better water management, and supports the shift to more climate resilient crops. More information on how the Commission is helping farmers can be found online.
Agriculture and Food Commissioner Christophe Hansen (pictured) said: “This summer has been particularly difficult for farmers across the EU. Drought and extreme heat are putting crops, fodder, livestock, and farmers' incomes under increasing pressure. We are closely and actively monitoring the developments, gaining insights of the impact directly from the ground. These events are a reminder that we must prepare for a future in which extreme weather becomes more frequent. We need to support farmers today while making European agriculture more resilient for tomorrow.”
This summer, Leeds Castle in Kent is inviting families to discover the stories of some of history's most inspiring women with the launch of its brand-new Little People, BIG DREAMS – Inspiring Women Trail.
Running throughout the UK school holidays this unique outdoor experience, which runs until the end of August, has been created in partnership with the globally celebrated children's book series and is included with general admission.
The interactive trail features 12 activity stations celebrating extraordinary women from across history, including Taylor Swift, Mary Earps, Marie Curie, Simone Biles, and Emmeline Pankhurst. Children can test their football skills in a penalty shootout, explore hands-on science experiments, make music and create their own rallying chants, bringing the stories of these trailblazing women to life through fun and imaginative activities.
Leeds Castle has been shaped by remarkable women for more than 900 years, from medieval queens to Lady Baillie, making it the perfect setting for a trail celebrating courage, creativity and ambition. Designed to inspire the next generation of dreamers, the Little People, BIG DREAMS trail offers families an unforgettable summer day out where history, storytelling and adventure collide.
Families can make the most of their visit to Leeds Castle with the Castle’s Kids Stay Free* offer, allowing families to delight in the magical atmosphere of the castle and grounds long after the last day guests have gone home.
Leeds Castle’s Kids Stay Free offer is available during the summer holidays for stays in the historic Maiden’s Tower or the charming Stable Courtyard accommodation. Set within 550 acres of stunning Kentish countryside, Leeds Castle’s on-site accommodation combines modern conveniences with characterful touches that all the family will enjoy.
Maiden's Tower at Leeds Castle offers a memorable stay in a five-star 16th century property located adjacent to the Castle. With beautifully designed bedrooms, en-suite bathrooms and stunning views, it's a peaceful retreat for all ages. Rumour has it, the Maiden’s Tower was once used by Katherine of Aragon’s Maid of Honours during her wedding to King Henry VIII.
The Stable Courtyard accommodation has individually designed en-suite bedrooms, providing a cosy retreat within the castle grounds. Guests staying overnight can wake up to a full English or continental breakfast served in the historic Castle View Restaurant, where panoramic views of the castle provide a memorable start to the day.
During their visit, guests can also explore the famous Maze and underground Grotto, tackle the Knight's Stronghold playground, enjoy Birds of Prey displays, and discover the estate's gardens and grounds. Alternatively, guests can enjoy a picnic overlooking the castle, relax in the beach area, jump on board Elsie the Castle Train or the Black Swan Ferry, orexperience the UK's first historical AI avatar with the new Pilgrimage of Love: Eleanor of Castile exhibition.
Leeds Castle is considered a national treasure, providing a window onto over nine hundred years of British history. It is a haven of tranquillity and offers a wealth of discovery and enjoyment for all ages.
Situated five miles southeast of Maidstone in Kent, Leeds Castle’s rich and riveting history, including serving six of England’s medieval queens, to its elaborate transformation into a glamorous 1930s country house retreat for the influential and famous by Anglo-American heiress, Lady Olive Baillie, secures its place as one of the most visited historic attractions in Britain.
The Castle and its estate is preserved and maintained by the Leeds Castle Foundation, a not-for-profit charity.
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