European Union leaders met in Brussels to discuss ramping up sanctions against Iran in response to Tehran’s attack on Israel. French President Emmanuel Macron urged his EU counterparts to expand sanctions, targeting those involved in producing the missiles and drones used in the attack. The EU leaders also called on Iran and its proxies to cease all attacks and exercise restraint to avoid further escalating tensions in the region. The EU is considering new measures, such as targeting proxies in Lebanon, Iraq, and Syria, and expanding the list of components for sanctions.
The United States is also preparing new sanctions against Iran’s missile and drone program and entities supporting the Revolutionary Guard and Defense Ministry. The EU leaders are expected to renew their call for an immediate cease-fire in Gaza and an increase in humanitarian aid to Palestinians. Ukrainian President Volodymyr Zelenskyy addressed the summit remotely, requesting more air defense systems, weapons, ammunition, and other military equipment to combat Russia’s invasion. Zelenskyy expressed concern about the Russian counteroffensive and the shortage of weapons among Ukrainian soldiers.
The leaders also discussed ways to improve the EU’s economic competitiveness, with a proposal to subsidize industry to counter the Biden administration’s support for environmentally friendly technology in the US and China’s subsidies for electric cars and solar panels. The EU rules restrict government aid to avoid distorting business competition across the bloc’s free trade zone, but there are proposals to direct some aid to EU-wide projects instead of purely national ones. Integrating the bloc’s financial markets to facilitate raising funds for renewable energy projects from stock, bond, and venture capital investors is also on the agenda.
The EU is facing legal challenges in adding the Iranian Revolutionary Guard to the sanctions list, as evidence of their involvement in acts of terrorism against EU member countries is required. The EU is considering expanding the list of entities targeted for sanctions, including those involved in providing Iran with components for weapons production. Russia’s two-year war in Ukraine, Zelenskyy’s plea for more military aid to combat the invasion, and the need to bolster Ukraine’s air defenses and ammunition supplies were also discussed at the summit. EU leaders are expected to focus on increasing humanitarian aid to Gaza, calling for a cease-fire, and addressing the escalating tensions in the region.
The summit also aims to address the need for new proposals to improve the single market, enhance the EU’s competitiveness, and integrate financial markets to support renewable energy projects. Former Italian Prime Minister Enrico Letta proposed an EU-wide effort to subsidize industry to counter US and Chinese subsidies that threaten industrial jobs in Europe. The report calls for better integration of financial markets to allow companies to raise funds for renewable energy projects. Any new proposals will be considered after the EU parliament elections in June and the appointment of a new commission later this year.
