This Week in Foreign Affairs — Brussels (#19, 2026)
EU, Mexico sign Modernised Global Agreement; EU–US trade deal implementation advances; €13m French aid for fisheries approved; terrorism convention protocol signed.
May 17, 2026 to May 23, 2026
EU, Mexico sign Modernised Global Agreement; EU–US trade deal implementation advances; €13m French aid for fisheries approved; terrorism convention protocol signed.
📋 In This Week's Newsletter
• 📅 This Week's Calendar in Brussels
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
This Week's Calendar in Brussels
- Informal meeting of foreign affairs ministers - Gymnich: On May 27, the EU Council's Informal meeting of foreign affairs ministers - Gymnich configuration is scheduled to hold an informal meeting ministerial meeting in Brussels.
European Commission
EU and Mexico sign Modernised Global Agreement, deepening trade, political, and sustainability ties
At the 8th EU-Mexico Summit held in Mexico City, the European Commission, represented by President Ursula von der Leyen, President of the European Council António Costa, High Representative Kaja Kallas, and Commissioner Maroš Šefčovič, announced the signature of the Modernised Global Agreement (MGA) and the interim Trade Agreement (iTA). The new framework introduces legally binding commitments on labour rights and environmental protection, supports gender equality through a Joint Declaration, and reinforces the EU-Mexico partnership in multilateral institutions. The MGA now includes expanded protections for EU geographical indications, boosts opportunities for EU businesses in Mexico's procurement and services markets, and opens tariff-free access for virtually all agricultural exports. The Agreements also launch new sectoral dialogues in energy, health, and digital, and are backed by a Global Gateway agenda mobilising over €5 billion for strategic investments. The summit confirmed a shared commitment to sustainability, resilient supply chains, and rule-based trade, with the iTA pending EU ratification. According to von der Leyen, the agreements reflect both sides' commitment to cooperation across policy areas and enhanced economic resilience.
Commission approves €13 million French aid scheme for fisheries under METSAF
On 21 May 2026, the European Commission approved a €13 million French State aid scheme to support fishing companies affected by increased fuel prices resulting from the Middle East crisis. Approved under the Middle East Crisis Temporary State Aid Framework (METSAF), adopted on 29 April 2026, the scheme allows direct grants based on the volume of fuel purchased in April and May 2026. According to the Commission, the measure was found necessary and proportionate under Article 107(3)(c) TFEU, and represents the first scheme authorised under METSAF. The scheme aims to safeguard food security and the economic viability of the fisheries sector in the face of energy price volatility.
Spring 2026 Economic Forecast: EU growth slows as energy shock raises inflation
The European Commission published its Spring 2026 Economic Forecast, projecting EU GDP growth at 1.1% for 2026, down from 1.5% in 2025, with inflation expected to reach 3.1% due to surging energy prices following renewed conflict in the Middle East. The forecast anticipates moderate growth in 2027 (1.4%) and gradual easing of inflation. Despite improved resilience from previous diversification efforts, household and business pressures remain pronounced, and fiscal deficits are projected to reach 3.6% of GDP by 2027. The forecast highlights significant risks tied to the duration and fallout of the energy supply shock.
EU Legislation (Official Journal)
Council Decision (EU) 2026/1132: EU signs protocol amending Council of Europe Convention on the Prevention of Terrorism
On 18 May 2026, the Council adopted Decision (EU) 2026/1132 authorising signature of a protocol amending the Council of Europe Convention on the Prevention of Terrorism. The Protocol introduces a revised definition of 'terrorist offence' to facilitate international cooperation and align with Article 3 of Directive (EU) 2017/541.
Council Decision (EU) 2026/1133: EU concludes Air Transport Agreements with US, Iceland and Norway
With Decision (EU) 2026/1133 of 18 May 2026, the Council concluded the Air Transport Agreement and Ancillary Agreement between the EU, Member States, US, Iceland, and Norway. These agreements, applied provisionally since 2011, are now formally ratified, extending the European single aviation market.
EU Council
Foreign Affairs Council (Trade): EU trade ministers assess economic security amid Middle East conflict
On 22 May 2026, EU trade ministers exchanged views on economic security impacts stemming from the Middle East crisis, reviewed outcomes from the 14th WTO ministerial conference, and discussed progress in ongoing trade negotiations.
EU-Mexico Summit marks signature of new agreements and joint commitment to multilateralism
At the 8th EU-Mexico Summit on 22 May 2026, leaders formalised the modernised global agreement and interim trade agreement, underlining their shared dedication to a multilateral, rule-based international order.
EP Committee Work
SEDE: Security and Defence Subcommittee addresses EU Arctic and transatlantic security cooperation
The Subcommittee on Security and Defence (SEDE) met in Strasbourg on 21 May 2026 to discuss strategic security themes, including EU engagement in the Arctic, evolving security cooperation with North America, and developments in European defence policy.
