COUNCIL OF THE EUROPEAN UNION,update

 

Press material Friday, 19 December 2025

● Council of the EU   19/12/2025 15:26 | Press release | Single currency: Council agrees position on the digital euro and on strengthening the role of cash   The Council today agreed its negotiating position on key proposals to strengthen the euro currency by enabling the introduction of a digital euro and by better clarifying the legal tender status of euro cash. In turn, these initiatives will help improve the EU’s strategic autonomy, economic security and resilience. The proposals relate to two regulations setting out the legal framework for the potential issuance of a digital euro, and a regulation to safeguard the role of cash in the EU by ensuring its wide acceptance and availability. “The digital euro is an important step towards a more robust and competitive European payment system, and can contribute to Europe’s strategic autonomy and economic security, as well as a strengthened international role for the euro.” — Stephanie Lose, Danish Minister for Economic Affairs “Europe’s strategic autonomy must be strengthened, including in the payments sector. The proposal for a digital euro is specifically aimed at enhancing the resilience of the payments infrastructure in the euro area. The Council’s agreement therefore sends a clear signal that the EU is capable of taking action on this important agenda.” — Morten Bødskov, Danish Minister for Industry, Business, and Financial Affairs Digital euro The digital euro would complement cash and would be available to the general public and businesses to make payments anytime and anywhere in the euro area. As a truly public facility directly backed by the European Central Bank (ECB), it would help preserve central bank money as the main anchor for a well-functioning payments system. Under the proposal, the digital euro would: be available online or offline and therefore usable even without an internet connection allow for payments and money transfers with a high degree of privacy exist alongside national and international private means of payment, such as cards or applications run by privately-owned providers Once the proposal to establish the legal framework is adopted by the European Parliament and Council, it will ultimately be for the ECB to decide whether to issue the digital euro. The ECB has recently indicated that the digital euro could be up and running by 2029. In its position agreed today, the Council has clarified a number of important elements regarding the design of the digital euro. To avoid the digital euro being used as a store of value and any impact on financial stability, the text provides for limits on the total amount of digital euros that can be held on online digital accounts and in digital wallets at any one time. The limits will be set by the ECB, but must respect an overall ceiling agreed by the Council which will be reviewed at least every two years.    Payment service providers may not charge consumers for certain mandatory services, such as opening and closing accounts, carrying out digital euro payment transactions from their account or wallet, or funding and defunding their digital euro accounts or wallets with money from their other deposit accounts in the same payment service provider. However, certain added-value services may be subject to fees. The text also lays out a framework to ensure that providers of digital euro interfaces and services receive the necessary access to mobile device producers’ hardware and software to ensure that fair access can be granted. Additionally, the text lays out the framework for how PSPs shall be compensated. During a transitional period of at least five years, interchange and merchant service charges will be capped at a level based on fees for comparable means of payments. After the transitional period, fee caps will be set based on the actual costs associated with the digital euro. Strengthening the legal tender status of euro cash Under current EU law, euro cash is the only legal tender in the euro area. This means that physical euro cash must generally be available and accepted to pay for services and goods and to discharge debts, subject to well-framed and monitored exceptions. The proposal on which the Council has now reached its position aims to clarify these rules, including their interplay with the digital euro, to ensure consistency among the two forms of public money. The proposal’s main provisions aim to: safeguard acceptance of cash as a payment method throughout the euro area guarantee that people have access to cash and are free to choose their preferred payment method In its position, the Council indicates its wish to effectively ban non-acceptance of cash by retailers or service providers with a few exceptions, notably for payments for goods or services purchased at a distance, including online, and unmanned points of sale. Businesses may however still indicate a preference for card or digital forms of payment. The Council’s negotiating mandate requires EU member states to monitor the acceptance of cash and to ensure access to cash throughout their territory on the basis of common and national indicators and take remedial measures where necessary. Finally, member states are expected to establish a cash resilience plan or measures for situations of widespread and severe disruptions of the continuity of electronic means of payments. Next steps With this agreed position, the Council can enter into negotiations with the European Parliament on the digital euro and the legal tender status of cash. Council negotiation mandate on the establishment of the digital euro Council negotiation mandate on the provision of digital euro services by non-Euro area payment service providers Council negotiation mandate on legal tender of euro banknotes and coins Towards a digital euro (background information) The euro (background information)   Visit the website

● Council of the EU

19/12/2025 15:32 | Press release | SAFE: member states endorse agreement on the participation of Canada   Member states’ representatives endorsed today the bilateral agreement with Canada under the ‘Security action for Europe’ (SAFE) regulation. Canada will be the first non-European country to participate inthe SAFE instrument, the €150 billion defence instrument that supports those EU member states that wish to invest in defence industrial production through common procurement, focusing on priority capabilities. This reflects the shared ambition of the EU and Canada to deepen their security and defence ties and to further strengthen joint defence cooperation, as set out in the Security and Defence Partnership signed at the Canada-EU Summit on 23 June 2025. Details of the agreement Under the SAFE instrument, procurement contracts will have to ensure that the cost of the components originating outside the EU, EEA-EFTA states and Ukraine is not higher than 35 % of the estimated cost of the components of the end-product. The agreement with Canada opens these eligibility conditions to allow for a greater participation of Canadian legal entities. The agreement foresees that such participation is subject to the payment by Canada of a financial contribution. Next steps The Council will be invited to authorise the formal signature of the agreement after legal scrubbing. Following the signature, the European Parliament will be requested to give its consent. Once the European Parliament has given its consent, the Council will be able to formally approve the agreement. Background In its conclusions of 6 March 2025, the European Council stressed that Europe must become more sovereign, and more responsible for its own defence and better equipped to act and deal autonomously to cope with immediate and future challenges and threats. At that European Council, all member states committed to strengthening their overall defence readiness, reducing strategic dependencies, while addressing critical capability gaps and strengthening the EDTIB accordingly so that the EU is in a position to better supply equipment in the quantities and at the accelerated pace needed. SAFE is the first pillar of the ReArm Europe Plan/Readiness 2030 presented by the European Commission. The other pillars are: boosting national defence funding by activating the Stability and Growth Pact's national escape clause; making EU instruments such as the cohesion funds more flexible to allow greater defence investment; complementing public funding with contributions from the European Investment Bank; and mobilising private capital. SAFE is also an important instrument to support Ukraine’s closer integration with the European defence industrial base, accelerating capability development, and enhancing Europe’s collective defence readiness in response to shared security threats. 19 participating countries submitted their National Defence Investment Plans under SAFE before the 30 November 2025 deadline. These plans are currently under review by the Commission. The SAFE Regulation provides that the Union may conclude bilateral or multilateral agreements inter alia with third countries with which the Union has entered into a Security and Defence Partnership, in order to open the Regulation’s eligibility conditions to these countries. The EU and Canada signed a Security and Defence Partnership on the occasion of the 23 June 2025 EU-Canada summit.   European Council conclusions on European defence and security, 23 October 2025 Security and Defence Partnership between the European Union and Canada (18 June 2025) Questions and answers on ReArm Europe Plan/Readiness 2030 (European Commission website) Security and defence (background information)   Visit the website ● Council of the EU   19/12/2025 15:04 | Press release | Savings and investment union: Council agrees position on revitalising the EU’s securitisation market   The Council today agreed on its position on reviving and simplifying the EU’s securitisation market, ahead of negotiations with the European Parliament.   This review of the EU framework governing the prudential and regulatory rules around securitisation aims to help this market live up to its potential in contributing to the Union’s competitiveness, a core EU priority. It will also help channel investment flows into a broader range of real‑economy activities, including in support of SMEs and infrastructure projects. The securitisation package is a first key deliverable of the EU’s savings and investment union (SIU) initiative. “I am pleased that we have delivered on our commitments and agreed on the first new proposal under the Savings and Investment Union. This clearly shows our will to boost European capital markets and mobilise private investments, which then has the possibility to grow and contribute to the European economy. The Danish compromise proposal ensures balance between boosting economic growth and safeguarding financial stability.” — Stephanie Lose, Danish Minister for Economic Affairs “Europe needs more investments. Draghi has said that very clearly. And speed is essential. That is why the Danish presidency has given particular priority to facilitating a Council agreement on improved rules for securitisations, as the use of securitisations can allow banks to lend more money to companies and citizens in Europe. Because we must strengthen the banks' opportunities to lend to the innovation and ideas of the future. And in this way strengthen European competitiveness, boost European growth and create more jobs in Europe.” — Morten Bødskov, Danish Minister for Industry, Business and Financial Affairs Securitisation describes the pooling of illiquid financial assets, such as corporate loans, mortgage loans, or consumer credit, and transforming them into tradable assets – bonds - for institutional investors. The mechanism helps banks – the originators of loans - to transfer risk associated with these assets. This frees up capital which can then be re-deployed for new lending. Non‑bank originators, such as corporations using commercial‑paper conduits or sponsors of infrastructure projects, also use securitisation as a funding or liquidity management tool. The revision takes the form of targeted amendments to the EU’s capital requirements regulation and the securitisation regulation. Council’s position Overall, the Council takes a balanced approach to expanding market activity on one hand, while preserving financial stability on the other.   Among other features of its position, the Council re-calibrates capital requirements for investments by banks in different types of securitisations in a risk sensitive manner. The Council mandate ensures that low-risk securitisations benefit from materially lower capital requirements than today, while maintaining capital requirements on riskier securitisations at current levels. The Council maintains the Commission’s proposed safer “resilient” securitisation category. When combined with the well-established simple, transparent and standardised (STS) label for securitisation packages, this category will deliver deeper capital savings with added incentives for safe market practices. The Council also significantly reduces administrative burdens compared to the current regulation and simplifies life for investors in their efforts to be STS compliant. The position allows for assessments to be carried out by third-party verifiers, lowering time sensitive burdens and duplication of tasks while making the overall framework more workable and appealing to market participants. Similarly, the Council removes the proposed administrative sanctions for institutional investors, considering them duplicative. In a clear demand side measure, the position raises the investment limit for undertakings for collective investment in transferable securities (UCITS), allowing them to acquire up to 50% of securities in a single public securitisation, up from the current 10% cap. This will stimulate market liquidity and investor participation in the securitisation market. Introducing added prudence, the Council tightens, as compared to the Commission’s proposal, the homogeneity requirements for SME-backed pools seeking the STS label while expressly allowing those pools to include SME loans from multiple member states, thereby advancing the key market-integration goals of the SIU. Compared to those proposed by the Commission, the Council also introduces additional safeguards tied to STS compliance when insurers, or indirectly reinsurers, provide unfunded credit protection in synthetic securitisations. It also allows securitisations of project financing in the pre-operational phase to qualify for the STS label. Finally, the Council mandate allows third country issuers to use alternative disclosure formats instead of the current templates, provided they make available to EU investors the same substantial information that EU‑based issuers must provide under the securitisation regulation. This approach preserves a level playing field, reduces operational frictions and encourages both inward and outward capital flows between the EU and third countries. Next steps With its agreed position, the Council can now enter into negotiations with the European Parliament to agree on final legal texts.   Background The savings and investments union is an initiative to improve how the EU’s financial system channels savings into productive investments. Its aim is to provide a wider range of efficient investment and financing opportunities for citizens and businesses. The European Council conclusions of 18 April 2024 called for a relaunch of the European securitisation market, including through regulatory and prudential changes. The European Council conclusions of June 2024 again called on the Council and the Commission to accelerate work on all identified measures to support the EU’s capital markets. Revitalising the securitisation market was also recommended in the reports from Enrico Letta and Mario Draghi as a means of strengthening the lending capacity of European banks and thereby helping to increase the EU's competitiveness. Council negotiating mandate on prudential requirements for credit institutions as regards requirements for securitisation exposures Council negotiating mandate on the general framework for securitisation and creating a specific framework for STS Savings and investment union (background information)   Visit the website

● Council of the EU

19/12/2025 10:23 | Press release | MFF: Council adopts partial mandate on the Single market and customs programme regulation   The Council adopted today an agreement for a partial negotiating mandate on the proposed Single market and customs programme regulation (SMCP), part of the overall proposals for the next multiannual financial framework (MFF). It brings together five individual funding programmes of the current MFF in a new programme aiming at supporting activities in policy areas that contribute to the smooth functioning of the single market and customs union and support taxation policy and measures countering fraud. The programme will also cover the development, production and dissemination of European statistics. The negotiating position is 'partial' because it excludes financial and horizontal issues. These are currently being discussed as part of the negotiations on the next multiannual financial framework (MFF) covering the period 2028 to 2034. “The adoption of this partial negotiating mandate brings us a step closer to the timely implementation of the EU’s next budget. It will support the functioning of our single market and customs union, expand the use of digital solutions and boost the cooperation and capacities of member states. Combining five existing programmes contributes to the overall objective of simplification of the EU’s next budget.” — Morten Bødskov, Danish Minister for Industry Business and Financial Affairs The proposed programme seeks to strengthen the single market by removing cross-border obstacles, enhancing cooperation between national administrations, improving enforcement of EU legislation and supporting Union-level digital solutions. It will also contribute to the implementation of key customs initiatives, including the proposed EU customs reform. Finally, the proposal intends to support measures with regards to standardisation, consumer protection, market surveillance, combating fraud, tax cooperation and help the development of European statistics. The SMCP brings together five programmes existing under the current MFF: Parts of the Single market programme (SMP) The Customs programme The Customs control equipment instrument (CCEI) The Fiscalis programme The Union anti-fraud programme (UAFP) Main changes in the Council mandate The Council expressed broad support for the overall ambition to combine several existing programmes into a new programme with a unified approach, enabling synergies and flexibility. In its partial mandate, the Council ensures bigger involvement of member states through the introduction of comitology, creating a committee composed of experts from the member states. Other changes relate to: Underlining the importance of the availability of high-quality European statistics The need for the programme to facilitate acquiring customs control equipment for the member states as a priority and with due safeguards. Next steps The partial negotiating position approved today is the Council's mandate to start negotiations with the European Parliament on the Single market and customs programme. The decision on the programme’s budget for 2028-2034 will depend on the final agreement on the next MFF. Background The Single market and customs programme will bring together 5 programmes already existing under the current MFF. It will combine parts of the single market programme, which supports and strengthens the governance of the single market; the customs programme, which protects the financial and economic interests of the EU and its member states and prevents unfair and illegal trade. Next, it will also incorporate the fiscalis programme, protecting the EU and member states from tax fraud, tax evasion and aggressive tax planning. Finally, it will incorporate the Union anti-fraud programme (UAFP), protecting the EU's and member states' financial interests by preventing fraud, corruption and money laundering. Proposal for a regulation establishing the Single Market and Customs Programme for the period 2028-2034 - Partial mandate for negotiations with the European Parliament   Visit the website ● European Council   19/12/2025 04:23 | Statements and remarks | Remarks by President António Costa at the press conference following the European Council meeting of 18-19 December 2025   We committed and we delivered.  In October, we decided that the European Union would cover Ukraine’s pressing financial needs for 2026 and 2027. Last week, we decided that Russia would not get its assets back until Moscow ends its aggression. Today, we approved a decision to provide €90 billion to Ukraine for the next two years.  As a matter of urgency, we will provide a loan backed by the EU budget. This will address the urgent financial needs of Ukraine. And Ukraine will only repay this loan once Russia pays reparations. The Union reserves its right to make use of the immobilised assets to repay this loan. At the same time, we gave a mandate to the Commission to continue working on the Reparation Loan based on Russian immobilised assets. On top of that, we have agreed to roll over our sanctions against Russia. Our goal is not to prolong the war. In fact, today’s decisions are a crucial contribution to achieve a just and lasting peace for Ukraine. Because the only way to bring Russia to the negotiation table is to strengthen Ukraine. Today’s decisions will provide Ukraine with the necessary means to defend itself and to support the Ukrainian people. The message we are sending to Russia today is crystal clear:  first, you have not achieved your objectives in Ukraine; second, Europe stands with Ukraine. Today, tomorrow and as long as necessary; third, Russia must come to the negotiation table in a serious way and accept that it will not win this war. Because the only way forward is a ceasefire and a negotiated peace. Our political and financial support to Ukraine will not falter: in war, in peace and in reconstruction. We are committed to building a free and prosperous Ukraine within the European Union.  Turning now to the rest of our agenda, I would like to say a few words about our long-term budget.  The European Union has set an ambitious agenda for itself, focused on security, competitiveness and social cohesion. We need a budget that gives us the means to achieve our ambitions. This morning, Ursula and I, started the day by meeting representatives of farmers – while many were gathered here in Brussels. We listened to their concerns. And I want to tell them: Europe is on your side. Europe will continue to support you. Because everybody around the table of the European Council recognises the strategic importance of farming. Protecting European farmers, protecting food security is a fundamental objective of the Union. And we will address it in the upcoming budget negotiations.  The European Commission proposals are a very good starting point for discussion. A new architecture fit for a new reality. Work now needs to continue on that basis. Time is of the essence. Our work will continue at pace. We need to create the conditions to reach an agreement by the end of next year. This is key to ensure we have enough time to implement our decisions. To adopt the legal acts. To prepare our administrations for the next budgetary cycle in 2028.  Finally, I want to commend the excellent work carried out by the Danish Presidency, under your leadership, dear Mette. Some remarkable steps have been taken during these last six months : a strong push to strengthen Europe’s defence and security, cutting energy supplies from Russia, and important progress on cutting red tape and bolstering our competitiveness. To conclude, the decisions we took today lay the foundation for a stronger, safer and more prosperous Europe. Thank you.   Visit the website ● European Council   19/12/2025 04:22 | CONCLUSIONS | European Council conclusions, 18 December 2025   On 18 December, the European Council adopted conclusions on Ukraine, the Middle East, European defence and security, next multiannual financial framework, enlargement and reforms, migration, geoeconomy and competitiveness and other items. European Council conclusions, 18 December 2025 European Council, 18 December 2025, Ukraine   Visit the website

● Council of the EU

18/12/2025 23:07 | Press release | EU institutions define priorities for 2026   A Joint Declaration on EU legislative priorities for 2026 was signed today by the European Parliament, Council and Commission. Given the speed and complexity of challenges faced by the European Union, unity, urgency and ambition are key. That is also the spirit behind which President of the European Parliament, Roberta Metsola, Danish Prime Minister, Mette Frederiksen, representing the Danish Presidency of the Council of the European Union, and President of the European Commission, Ursula von der Leyen, signed the Joint Declaration in the margins of the European Council today. The Joint Declaration prioritises legislative actions that focus on boosting the EU's competitiveness and resilience, safeguarding citizens and businesses, while pursuing ambitious simplification goals and working towards swift agreement on the next Multiannual Financial Framework. Utmost priority will be given to key policy objectives for a new era for European defence and security, to secure Europe's sustainable prosperity, competitiveness and simplification, to strengthen our societies and our social model and quality of life, to ensure comprehensive approach to boarder management and migration, to protect our democracy, uphold our values and to leverage our global influence and partnerships. The Declaration highlights legislative proposals listed in the accompanying document, which the three Institutions commit to pay particular attention to and to prioritise in 2026. Progress on these proposals should be regularly monitored throughout the year, both to provide updates on the state of play and to allow for early warning of any developments that risk any delays. The Presidents of the European Parliament, the Council of the European Union and the European Commission, will closely ensure the timely and effective implementation of this Joint Declaration. “Europe moves when we all pull in the same direction. This Joint Declaration for 2026 is more than just words on a paper – it is a sign of unity and our firm conviction to deliver on people's expectations. For the first time, it sets out a clear and focused list of ten legislative priorities to make our Union stronger, safer, and more competitive. Parliament is ready to get to work.” — Roberta Metsola, President of the European Parliament “Today we stand united with a shared vision for our Union's future. We must deliver a new era of European security – and that starts with a just and lasting peace for Ukraine an strengthening our own defences. We must also build a more competitive, fairer Europe  for our citizens and businesses. And finally we are committed to reaching a swift agreement on the next long-term EU budget. Because to turn our common vision into reality, we must have the means to deliver it.” — Ursula von der Leyen, President of the European Commission Next Steps The Joint Declaration will be published in the EU's Official Journal in the coming days. The co-legislators will ensure the timely and effective implementation of this Joint Declaration. Background As set out in the Interinstitutional Agreement on better law-making, signed in 2016 by the three institutions the European Parliament, the Council, and the Commission discuss and agree on legislative priorities for the next year through an annual Joint Declaration, after the Commission adopts its work programme. This approach helps the institutions collaborate more efficiently on key legislative proposals, with the Parliament and the Council acting as co-legislators. Joint Declaration on EU legislative priorities for 2026   Visit the website

● European Council

18/12/2025 20:05 | CONCLUSIONS | European Council conclusions on the Middle East, European defence and security, next multiannual financial framework, enlargement and reforms, migration and other items   II. MIDDLE EAST 4. The European Council welcomes the adoption of United Nations Security Council Resolution 2803 on the establishment of the Board of Peace and of a temporary International Stabilisation Force, as outlined in the Comprehensive Plan to End the Gaza Conflict. It calls on all parties to implement the Resolution in its entirety, and in line with relevant international political and legal principles. It recalls the need to stabilise the security environment in Gaza, in line with UN Security Council Resolution 2803, including by ensuring the permanent decommissioning of weapons from Hamas and other non-state armed groups. 5. In this context, the European Council reaffirms the EU’s strong commitment to international law and to a comprehensive, just and lasting peace based on the two-state solution in accordance with relevant UN Security Council Resolutions where two democratic states, Israel and Palestine, live side-by-side in peace within secure and recognised borders. The European Union will contribute to all efforts towards this solution. 6. The European Union is committed to contributing to this implementation, including through an enhanced mandate for the European Union Border Assistance Mission for the Rafah Crossing Point (EU BAM Rafah) and the European Union Police Mission for the Palestinian Territories (EUPOL COPPS), as well as through engagement in the Civil-Military Coordination Centre (CMCC). It stands ready to support the establishment of the Board of Peace and will actively engage with partners on the next steps.  7. Recalling its previous conclusions, the European Council stresses the need for the rapid, safe and unimpeded delivery and sustained distribution of humanitarian aid at scale into and throughout Gaza, including via the Cyprus Maritime Corridor to supplement land routes, in accordance with international humanitarian law, and also stresses the need for the UN and its agencies, and humanitarian organisations, to be able to work independently and impartially. In this respect it calls on Israel not to implement the NGO registration law in its current form. The European Council calls in particular for essential items, such as shelter, winterisation supplies and medical items, to be allowed into Gaza. 8. The European Council underlines the need for international and regional stakeholders to provide support for the reconstruction and development of Gaza, in line with international law. Building on the first meeting of the Palestine Donor Group on 20 November 2025, the European Union will engage with all partners to contribute to recovery and reconstruction efforts and continue to support the Palestinian Authority, including in its ongoing reform agenda. In this respect, the European Council reiterates the importance of implementing the reform programme of the Palestinian Authority so that it can securely and effectively take back control of Gaza. It calls on Israel to urgently release withheld clearance revenues and extend the correspondent banking services between Israeli and Palestinian banks, both being necessary to ensure the proper functioning of the Palestinian Authority and the delivery of essential services to the population. 9. The European Council strongly condemns the massive increase in settler violence against Palestinian civilians, including violence against Christian communities, and the policies and threats of forcible displacement and annexation, in the West Bank, including East Jerusalem. It urges the Government of Israel to abide by its obligations under international law and protect the Palestinian population of the occupied territories. It calls on the Government of Israel to reverse the expansion of settlements, which are illegal under international law. The European Council reiterates its call for the preservation of and respect for the Status Quo of Jerusalem’s holy sites. It also reiterates its call on the Council to take work forward on further restrictive measures against extremist settlers and entities and organisations that support them. Lebanon 10. The European Council calls for de-escalation in the wider region, and underlines the need to preserve stability in Lebanon. It reiterates its support for the stabilisation of Lebanon’s economic and security situation as well as its reconstruction, and supports the Government’s efforts to establish the State’s monopoly on holding weapons. The European Council reiterates its unwavering support for the fundamental role of the United Nations Interim Force in Lebanon (UNIFIL). The European Council condemns the recent attacks against UNIFIL and calls for a thorough investigation. Such attacks against UN peacekeepers constitute a grave violation of international law, are totally unacceptable and must stop immediately. The European Council reiterates its call on all parties to respect and implement the terms of the 27 November 2024 ceasefire agreement and for the full implementation of UN Security Council Resolution 1701. In this respect, it calls for the full disarmament of Hezbollah and other non-state armed groups in Lebanon. The European Union will continue to support the Lebanese State’s sovereignty, territorial integrity and State-building efforts, including by contributing to the strengthening of the Lebanese Armed Forces. Syria 11. One year after the fall of the Assad regime, the European Council reiterates its support for a peaceful and inclusive transition in Syria and underlines the importance of protecting the rights of Syrians from all ethnic and religious backgrounds without discrimination. It expresses concern about foreign interference in Syria’s transitional process and urges all actors, both domestic and external, to fully respect Syria’s unity, independence, sovereignty and territorial integrity, in accordance with international law. III. EUROPEAN DEFENCE AND SECURITY 12. The European Council strongly condemns all recent hybrid attacks against the European Union and its Member States. In the light of Russia’s and Belarus’ intensified hybrid campaign, it calls for accelerated efforts to strengthen resilience, protect critical infrastructure, and prevent, deter and respond to hybrid attacks throughout the Union, using all relevant policies and instruments, including through further restrictive measures against those countries. 13. Recalling that Russia’s war of aggression against Ukraine and its repercussions for European and global security in a changing environment constitute an existential challenge for the European Union, the European Council took stock of progress in the implementation of its previous conclusions on European defence and security aimed at decisively ramping up Europe’s defence readiness by 2030, reducing strategic dependencies and addressing critical capability gaps, including in the area of space, with a 360° approach. Further to the presentation of the European Defence Readiness Roadmap 2030, it reviewed ongoing work related to Member State-led capability coalitions, to priority capability areas and to launching concrete projects in the first half of 2026, including with the support of the SAFE and European Defence Industry Programme (EDIP) instruments, as well as work related to strengthening the European Defence Agency. It welcomes initiatives in this regard, including the holding of the Eastern Flank summit in Helsinki on 16 December 2025. 14. The European Council welcomes the adoption of the Regulation as regards incentivising defence-related investments in the EU budget and the presentation of the Defence Industry Transformation Roadmap. The European Council calls for work to be intensified on all strands identified in October 2025. It also calls on the co-legislators to take work forward on relevant legislative proposals as a matter of priority, such as the Defence Readiness Omnibus and the recent proposal to facilitate military mobility. The European Council welcomes the agreement found on the participation of Canada in the SAFE instrument. 15. The above is without prejudice to the specific character of the security and defence policy of certain Member States, and takes into account the security and defence interests of all Member States, in accordance with the Treaties. IV. NEXT MULTIANNUAL FINANCIAL FRAMEWORK 16. Following the intensive preparatory work carried out during this semester, the European Council took note of the presentation of the draft Negotiating Box developed by the Danish Presidency and held an exchange of views on the future Multiannual Financial Framework. 17. It calls on the incoming Presidency to continue the work, with a view to a timely agreement. An agreement before the end of 2026 would allow for the adoption of legislative acts in 2027, which is necessary to ensure that EU funding reaches beneficiaries without interruption in January 2028. V. ENLARGEMENT AND REFORMS 18. The European Council held a strategic discussion on the way forward on enlargement, including aspects related to internal reforms. 19. Recalling its previous conclusions, the European Council stresses the continued importance of enlargement as a geostrategic investment in peace, security, stability and prosperity. It is a driver for improving the economic and social conditions of European citizens, reducing disparities between countries, and must foster the values on which the Union is founded. Looking ahead to the prospect of a further enlarged Union, both future Member States and the EU need to be ready at the time of accession. Aspiring members need to continue their reform efforts, notably in the area of rule of law, in line with the merit-based nature of the accession process and with the assistance of the EU. In parallel, the Union needs to lay the necessary internal groundwork and reforms. This will make the European Union stronger and enhance European sovereignty. 20. As the enlargement process is moving forward, the European Council invites the Commission to present its in-depth policy reviews so that this work advances in parallel. VI. MIGRATION 21. Recalling its previous conclusions, and following the recent letter from the President of the Commission, the European Council took stock of progress in their implementation. In this light, the European Council calls for intensified work on all strands to continue as a matter of priority, in line with EU and international law. VIII. OTHER ITEMS Pact for the Mediterranean 23. Thirty years after the Barcelona Process was launched, the European Council welcomes the Council conclusions of 20 November 2025 on the Pact for the Mediterranean (One Sea, One Pact, One Future). The Pact is an opportunity to reshape the EU’s relations with its Southern Mediterranean partners through renewed political commitment. The European Council calls for its swift and efficient implementation, supported by the mobilisation of relevant EU policy tools and through synergies with the Union for the Mediterranean, to address common regional challenges and opportunities in a spirit of co-ownership, mutual interest and joint responsibility. Fight against antisemitism, racism and xenophobia 24. Following the recent antisemitic attack in Sydney, the European Council extends its deepest condolences to the families and friends of the victims and stands in solidarity with Australia and with Jewish communities worldwide. The European Council reiterates its condemnation in the strongest possible terms of all forms of antisemitism and hate, intolerance, racism and xenophobia, including anti-Muslim hatred. It looks forward to the upcoming presentation by the Commission of an anti-racism strategy. 25. The European Council invites the Commission and the Member States to intensify the follow-up to the Council declaration on fostering Jewish life and combating antisemitism of 15 October 2024, including as regards the protection of Jewish institutions.  Fight against disinformation and against foreign information manipulation and interference 26. Following the Joint Communication on the European Democracy Shield, the European Council recalls the importance of strengthening Europe’s democratic resilience. It stresses the need to tackle disinformation and foreign information manipulation and interference (FIMI) and to protect free and pluralistic media. In this context, the European Council highlights the legal responsibility of platforms in fighting the dissemination of disinformation and illegal content. The European Council reaffirms the EU’s regulatory autonomy in the digital sphere. Macro-regional strategy for the Atlantic 27. The European Council invites the Commission, in cooperation with Member States, to develop an EU macro-regional strategy for the Atlantic by June 2027, taking into account the existing Atlantic Maritime Strategy and the Atlantic Action Plan.   Visit the website ● Council of the EU   18/12/2025 17:45 | Press release | Deforestation: Council signs off targeted revision to simplify and postpone the regulation   The Council today formally adopted a targeted revision of the EU regulation on deforestation-free products (EUDR), aimed at simplifying its implementation and ensuring that operators, traders and authorities are adequately prepared for its application. The revision streamlines the due diligence requirements and postpones the application of the regulation for all operators until 30 December 2026, with an extra six-month cushion for micro and small operators. This responds to concerns raised by member states and stakeholders regarding administrative burden and the readiness of the IT system necessary for the effective functioning of the EUDR, while fully preserving the regulation’s objectives of preventing deforestation and forest degradation linked to products placed on the EU market. To further reduce administrative burden, certain printed products (such as books, newspapers, printed pictures) were removed from the scope of the regulation, reflecting the limited deforestation risk associated with these items. The revision introduces the obligation for the European Commission to conduct a simplification review of the regulation and present a report by 30 April 2026. The report should evaluate the impact and administrative burden of the EUDR, particularly for smaller operators, and should, where appropriate, be accompanied by a legislative proposal. Next steps Following its formal adoption by the Council, the revised regulation will be published in the Official Journal of the European Union and enter into force three days after publication. Background The regulation on deforestation-free products entered into force in June 2023 with the aim of ensuring that certain commodities, such as cattle, cocoa, coffee, oil palm, rubber, soya and wood, and their derived products placed on or exported from the EU market have not caused deforestation or forest degradation. Its main provisions were initially due to apply from 30 December 2024. Following concerns raised by member states, third countries, traders and operators about readiness, an initial one-year postponement was adopted in December 2024. Asa result, the current EUDR becomes applicable as of 30 December 2025. The new amendment, proposed by the Commission in October 2025, responds to continuing implementation challenges, in particular the need to ensure the effective functioning of the EU information system and alleviate administrative burdens for smaller operators. Text of the EUDR revision End of written procedure EU deforestation law: Council and Parliament reach a deal on targeted revision (press release, 4 December 2025) EU deforestation law: Council formally adopts its one-year postponement (press release, 18 December 2024) Council adopts new rules to cut deforestation worldwide (press release, 16 May 2023) Deforestation (background information)   Visit the website ● Council of the EU   18/12/2025 16:28 | Press release | Council signs off simplification of Common Agricultural Policy   Today, the Council gave its final green light on the simplification of the Common Agricultural Policy (CAP). The aim is to boost the competitiveness of the European agriculture by cutting red tape, supporting farmers, including small farmers and business start-ups, encouraging innovation and boosting productivity. “Today, we delivered once more on our simplification agenda by making EU rules simpler and easier for our farmers and national administrations. Getting rid of unnecessary rules for farmers and member states has been a priority for the Danish presidency. This will help the agricultural sector grow and become stronger - boosting the sector’s competitiveness across Europe.” — Marie Bjerre, Minister for European affairs of Denmark “This revision is an important step in the direction of simplification of the common agricultural policy. It not only contributes to the competitiveness of our farmers; it also makes it easier to deliver on our green ambitions, by giving farmers and member states more flexibility in the implementation of green requirements. I am very happy that we could approve the package before the end of the Danish presidency.” — Jacob Jensen, Minister of food, agriculture and fisheries of Denmark The simplification measures could lead to significant reductions in administrative costs for both farmers and national administrations. According to the Commission’s initial assessment, they could lead to annual savings of up to €1.6 billion for farmers and more than €200 million for member states’ administrations. The revised law forms the so-called 'Omnibus III' legislative package proposed by the Commission in May 2025. The package contains amendments to the strategic plan regulation (SPR) and the ‘horizontal’ regulation on the Common Agricultural Policy. It is the second of a series of simplification files on which co-legislators reach agreement in a record time following “Omnibus II” adopted by the Council last week. Main elements of the new simplification measures The simplification measures aim to: ease the administrative burden for farmers and administrations increase the payments to small farmers and simplify the rules on conditionality, in particular for organic farms reduce the on-the-spot checks and delete the annual performance clearance The revised legislation allows member states to provide crisis payments to active farmers that are affected by natural disasters, adverse climatic events or catastrophic events. Such payments will ensure continuity of the agricultural activity of the affected farmers. Finally, among other improvements, the revised law: provides flexibility to member states to decide to what extent partially organic farms could be considered to fulfil certain environmental standards, the so-called GAECs (good agricultural and environmental conditions) improves the possibility for farmers to benefit from risk management tools, and increases the percentage rate for advanced direct payments Next steps The legislative act will be published in the EU’s official journal in the coming days and enter into force the day after its publication. Background The simplification package 'Omnibus III' on agriculture is part of a broader political objective of enhancing EU competitiveness, by reducing businesses’ administrative burden and creating more favourable conditions for them to operate in the EU. This simplification drive is conducted in response to the impetus from the European Council (March 2023 Conclusions, 2024-2029 Strategic Agenda) that called for simplifying the general regulatory environment and reducing the administrative burden. On 20 March 2025, the European Council in its conclusions urged the co-legislators to take work forward on the Omnibus simplification packages as a matter of priority and with a high level of ambition. Regulation on CAP simplification, PE-CONS 49/25, 18 December 2025 Regulation amending regulation (EU) 2021/2115 as regards the conditionality system, types of intervention in the form of direct payment, types of intervention in certain sectors and rural development and annual performance reports and regulation (EU) 2021/2116 as regards data and interoperability governance, suspensions of payments annual performance clearance and controls and penalties, Commission proposal, 14 May 2025 Simplification of EU rules (background information)   Visit the website