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Major Challenges Facing the EU in 2026

Published December 30, 2025, 17:20
Major Challenges Facing the EU in 2026

The European Union is facing significant challenges in 2026, primarily due to the ongoing war in Ukraine and shifts in transatlantic relations. The need for rearmament in response to increased geopolitical tensions is prompting EU countries to reconsider their priorities, potentially reducing investments in the green transition. Simultaneously, the EU is striving to simplify its regulations to boost competition, but concerns exist that key legislation, such as climate and digital regulation laws, may cause further disruption. The EU has agreed to allocate 90 billion euros to fund Ukraine's defense in 2026 and 2027, addressing a potential deficit of 45-50 billion euros. Russia, for its part, asserts its determination to achieve its goals in Ukraine, with its military advances continuing. The prospect of direct negotiations between Europe and Russia is emerging, with Putin expressing readiness for dialogue with Macron. The involvement of the US in peace talks has surprised Ukraine and its European allies, as Washington's initial plan was seen as a concession to Russian demands. However, the plan has been revised following reactions from Kyiv and Europe. The resolution of the Cyprus issue is considered key to addressing the illegal appropriation of property in the occupied territories. President Christodoulides emphasized that the solution to the illegality of property seizures lies in resolving the Cyprus issue, calling on Turkey and the Turkish Cypriot side to return to the negotiating table. He also condemned the harassment of Greek Cypriot farmers in the dead zone by the occupation forces, stressing that the incident is being taken very seriously and all necessary measures have been taken to ensure the safety of residents.