This Week in Foreign Affairs — Brussels (#20, 2026)
EU sanctions on Iran over navigation; new restrictive measures on Hamas Politburo; EU-Mexico trade deal signed; support to Lebanon and Albania via Peace Facility; Hungary regains EU funding.
May 24, 2026 to May 30, 2026
EU sanctions on Iran over navigation; new restrictive measures on Hamas Politburo; EU-Mexico trade deal signed; support to Lebanon and Albania via Peace Facility; Hungary regains EU funding.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
• 📚 What We're Reading This Week
European Commission
Commission opens in-depth foreign subsidies investigation into JD.com's proposed acquisition of CECONOMY
On 27 May 2026, the European Commission opened an in-depth investigation under the Foreign Subsidies Regulation (FSR, entered into force 13 July 2023) into JD.com's proposed acquisition of Germany-based CECONOMY AG. The Commission's preliminary concerns focus on whether JD.com has received foreign subsidies, including preferential financing, tax incentives, and grants from entities linked to the People's Republic of China, that could distort the EU internal market. The investigation covers whether such financial support enabled JD.com to offer more favorable terms during the acquisition process and whether this could affect competitive conditions post-transaction. The Commission has set a deadline of 2 October 2026 to reach a decision. The investigation will determine if commitments from JD.com, a prohibition, or a no-objection decision are warranted. The companies must notify the Commission when their combined EU turnover and financial contributions from third countries meet the thresholds set out in the FSR.
Read-out of the College orientation debate on EU-China relations
On 28 May 2026, the College of Commissioners held an orientation debate on EU-China relations. The Commission reaffirmed its approach of 'de-risking, not decoupling' from China. While China is seen as a critical economic partner, the Commission noted that the current trade and investment relationship is unsustainable and requires a more robust response as economic and security interests converge. The debate will inform further discussions at the G7 and European Council in June. The Commission signaled that future engagement with China would focus on addressing both opportunities and challenges within a more coherent framework.
Statement by President von der Leyen with Hungarian Prime Minister Magyar
On 28 May 2026, Commission President Ursula von der Leyen welcomed Hungarian Prime Minister Péter Magyar to Brussels following recent political changes in Hungary. Von der Leyen outlined recent structural reforms agreed with the Hungarian government, including joining the European Public Prosecutor's Office, strengthening the Integrity Authority, revising public procurement law, and phasing out Public Interest Trusts (PITs). These measures have enabled the Commission to unlock €10 billion in NextGenerationEU funds and €6.4 billion in Cohesion funds. Progress on academic freedom led to the reinstatement of Hungarian participation in Erasmus. The Commission signaled ongoing cooperation on governance reforms, economic recovery, and the rule of law.
Remarks by Commissioner Lahbib on the Communication on Humanitarian Aid
On 26 May 2026, Commissioner Hadja Lahbib presented the new Communication on Humanitarian Aid, developed in coordination with High Representative Kaja Kallas. The Communication responds to sharply increased humanitarian needs, with 239 million people worldwide requiring aid in 2026. The new strategy is structured around three priorities: protecting humanitarian access, improving performance (including supply chain reform, pooled procurement, and increased use of cash assistance), and building partnerships for resilience and peace. The Communication also addresses the safety of humanitarian workers and the integration of development and peacebuilding efforts, with a target of 25% localisation of funding by 2027.
Defending values, driving reform, delivering impact: new measures to strengthen EU humanitarian action
On 26 May 2026, the Commission and High Representative adopted a Joint Communication on Humanitarian Aid. The Communication sets out measures to ensure principled and effective humanitarian assistance amid record global needs. The approach is built on three pillars: protection (including humanitarian diplomacy and access), performance (cost-effectiveness and data-driven delivery), and partnership (integrating humanitarian aid with development and peace). President von der Leyen and High Representative Kallas underscored the EU's role as the leading humanitarian donor and introduced measures to support humanitarian workers and local actors. The Communication follows a significant increase in forced displacement and humanitarian crises worldwide.
Questions and answers on the Communication on Humanitarian Aid
On 26 May 2026, the Commission published a detailed Q&A on the new Humanitarian Aid Communication. The document outlines the rationale for the updated approach, citing the steep rise in humanitarian needs and the need for reform in supply chains, data sharing, and local partnerships. The Q&A explains the role of humanitarian diplomacy, the importance of coordinated logistics, and the integrated approach to fragility. The EU humanitarian aid budget for 2026 is approximately €2.3 billion, including reserves, with the EU and Member States contributing 34% of global humanitarian funding in 2025.
Commission proposes new authorisation for mobile satellite services for EU's resilience and competitiveness
On 26 May 2026, the Commission adopted a proposal for a regulation on the selection of mobile satellite services (MSS) providers for the 2 GHz frequency band beyond 2027. The proposal introduces an EU-level selection procedure and authorisation to ensure regulatory consistency and enable cross-border satellite communications. The 2 GHz MSS band will be split between governmental (one third, including integration with IRIS²) and commercial uses (two thirds, including Direct-to-Device services). The proposal aligns with the forthcoming Digital Networks Act and follows opinions from the Radio Spectrum Policy Group.
Statement by President von der Leyen in Lithuania
On 25 May 2026, President von der Leyen delivered a statement in Vilnius addressing security challenges on the EU's eastern border. She announced that the Baltics will receive €12 billion through SAFE, along with investments in anti-drone capabilities, air defence, and critical infrastructure protection. The President noted the reallocation of €1.5 billion in Cohesion funds to defence preparedness and called for improved cross-border coordination and early warning systems. Von der Leyen also highlighted the integration of Ukraine into Europe's defence industrial strategy and called for a protocol to address hybrid and cyberattacks across Member States.
EU Legislation (Official Journal)
Council Regulation (EU) 2026/1181 suspending Common Customs Tariff duties for certain fertilisers
Council Regulation (EU) 2026/1181 of 22 May 2026 temporarily suspends Common Customs Tariff duties on imports of urea, ammonia, and certain nitrogen-based fertilisers and mixtures, except those originating from Russia and Belarus. The measure, valid until 31 May 2027, aims to improve supply, diversify sources, and reduce dependency on Russia and Belarus. The quotas are based on 2024 MFN import volumes, excluding Russia/Belarus, with a 20% top-up.
Council Decision (EU) 2026/1172 on the signing of the International Coffee Agreement 2022
Council Decision (EU) 2026/1172 of 24 February 2026 authorises the signing of the International Coffee Agreement 2022. The new agreement, negotiated by the International Coffee Organization, updates voting and contribution systems and enhances private sector involvement. The 2022 Agreement will replace the 2007 Agreement, which is extended until 1 February 2028.
Political and Security Committee Decision (CFSP) 2026/1180 on the appointment of the Head of Mission of EUAM Ukraine
Decision (CFSP) 2026/1180 of 28 May 2026 extends the mandate of Mr Rolf Michael Hay Pereira Holmboe as Head of Mission of the EU Advisory Mission for Civilian Security Sector Reform Ukraine (EUAM Ukraine) until 30 June 2026. Ms Cornelia Taylor is appointed Head of Mission from 1 July 2026 to 31 May 2027.
Political and Security Committee Decision (CFSP) 2026/1178 extending the mandate of the Head of Mission of EULEX Kosovo
Decision (CFSP) 2026/1178 of 13 May 2026 extends the mandate of Mr Giovanni Pietro Barbano as Head of Mission of the EU Rule of Law Mission in Kosovo (EULEX Kosovo) from 15 June 2026 to 25 June 2026.
Council Decision (CFSP) 2026/1170 on an assistance measure under the European Peace Facility to support the Lebanese Armed Forces
Decision (CFSP) 2026/1170 of 28 May 2026 establishes an assistance measure of €100 million under the European Peace Facility for the Lebanese Armed Forces. The support covers non-lethal equipment for border control, intelligence, maritime security, protection against drones, and healthcare, to be delivered over 48 months.
Council Regulation (EU) 2026/1175 amending Regulation (EU) 2024/386 establishing restrictive measures against Hamas and Palestinian Islamic Jihad
Council Regulation (EU) 2026/1175 of 28 May 2026 updates Regulation (EU) 2024/386 to include members of the Hamas Political Bureau (Politburo) in asset freeze and travel restriction measures. Exemptions are provided for individuals without influence over violent actions.
Council Decision (CFSP) 2026/1152 extending the mandate of the EU Special Representative for the Middle East Peace Process
Decision (CFSP) 2026/1152 of 22 May 2026 extends Christophe Bigot's mandate as EU Special Representative for the Middle East Peace Process until 29 February 2028, with an updated financial reference amount and revised objectives reflecting UNSC Resolution 2803 (2025) and the Comprehensive Plan to End the Gaza Conflict.
Council Decision (EU) 2026/1163 on the signing of the Interim Agreement on Trade with Mexico
Council Decision (EU) 2026/1163 of 11 May 2026 authorises the signing of the Interim Agreement on Trade between the EU and the United Mexican States. The agreement covers trade and investment liberalisation and will be replaced by the Modernised Global Agreement upon its entry into force.
EU Council
General Affairs Council discusses June European Council, MFF, and rule of law exercise
On 26 May 2026, the General Affairs Council began preparations for the June European Council. Ministers held a policy debate on the next Multiannual Financial Framework (MFF), discussed EU-UK relations, and conducted a country-specific rule of law exercise covering France, Croatia, Italy, and Latvia.
Agriculture and Fisheries Council debates fertiliser availability and trade issues
On 26 May 2026, agriculture ministers exchanged views on fertiliser availability and affordability in the EU, including the Commission’s fertiliser action plan, and discussed trade-related agricultural topics.
Competitiveness Council adopts science diplomacy recommendation and debates EU space act
On 29 May 2026, the Competitiveness Council (Research and Space) adopted a recommendation on science diplomacy and held policy debates on the Horizon Europe 2028-2034 programme, the EU space act, and space for economic security.
EP Committee Work
AFET delegation assesses EU-South Africa strategic partnership and multilateral challenges
From 26 to 29 May 2026, the European Parliament Committee on Foreign Affairs (AFET) delegation, led by David McAllister (EPP, DE), visited South Africa to discuss the EU–South Africa strategic partnership, geopolitical competition in Africa, and parliamentary roles in international affairs. The delegation met with South African parliamentary, government, and civil society representatives, as well as EU project partners. The mission addressed cooperation on foreign affairs, regional development, and responses to global challenges such as the Middle East conflict and Russia’s war in Ukraine.
DEVE delegation to Mozambique reviews Global Gateway projects and humanitarian response
A four-member delegation of the Committee on Development (DEVE), led by Hilde Vautmans (Renew, BE), visited Mozambique from 26 to 28 May 2026 to assess Global Gateway projects on digitalisation, youth employment, and energy. The mission included meetings with national authorities, Members of Parliament, civil society, and international organisations to discuss challenges from natural disasters and the security crisis in Cabo Delgado. EU-funded initiatives on youth employment, food security, and climate resilience were reviewed.
SEDE MEPs discuss deepening EU–Canada defence and security ties
A delegation from the Security and Defence Committee (SEDE), led by Riho Terras (EPP, EE), held meetings in Canada focused on Ukraine support, sanctions alignment, and defence industrial cooperation. Discussions addressed joint arms procurement, Canada’s participation in the EU’s SAFE instrument, and the process to establish a Defence, Security and Resilience Bank. The agenda also included Arctic security, hybrid threats, and supply chains for critical raw materials.
FEMM Committee delegation reviews women's rights and EU aspirations in Georgia
From 26 to 28 May 2026, the Committee on Women's Rights and Gender Equality (FEMM), led by Dainius Žalimas (Renew, LT), visited Georgia to evaluate the country's situation on gender equality, women’s representation, and the impact of disinformation campaigns targeting European integration. The delegation met civil society, opposition, journalists, and international partners, expressing support for Georgia’s EU aspirations and concern over recent arrests of civil society representatives.
BUDG Committee assesses defence spending and aid logistics in Poland
A six-member delegation from the Committee on Budgets (BUDG), led by Janusz Lewandowski (EPP, PL), visited Poland to discuss security, the EU budget, and support for Ukraine. The visit included meetings with senior Polish officials, a visit to Rzeszów–Jasionka Airport (a key hub for Ukraine support), and discussions on logistics and the Medevac programme.
SANT Committee strengthens transatlantic public health partnerships in US visit
The Committee on Public Health (SANT) conducted its first official mission to the United States, engaging with Congressional committees, the American Public Health Association, and University of Pittsburgh Medical Center. The agenda focused on medicine access, chronic disease management, and workforce challenges. Ignazio Marino (Greens/EFA, IT) led the delegation, emphasizing the value of transatlantic cooperation in health policy.
ECON Committee delegation to Canada focuses on finance and digital regulation
The Economic and Monetary Affairs Committee (ECON), led by Ludek Niedermayer (EPP, CZ), held meetings in Ottawa and Toronto with Canadian parliamentary counterparts, the Bank of Canada, and the Toronto Stock Exchange. Discussions covered digital and sustainable finance, AI developments, and regulation of the financial sector, with an emphasis on maintaining open channels for cooperation.
EMPL Committee issues opinion on European Competitiveness Fund including defence research
On 28 May 2026, the Committee on Employment and Social Affairs (EMPL) adopted its opinion, rapporteur Grégory Allione, on the proposal for a regulation establishing the European Competitiveness Fund (ECF). The opinion covers defence research and innovation activities and proposes changes to regulations (EU) 2021/522, 2021/694, 2021/697, 2021/783, and amendments to (EU) 2021/696, 2023/588, and EDIP.
What We're Reading This Week
- Cuba: Cuba faces economic turmoil amid ongoing shortages, prompting waves of migration and calls for government reform.
- French prosecutors probe possible foreign interference targeting hard left: French authorities are investigating allegations that foreign actors may have attempted to influence or undermine France's far-left political groups.
- Sidestepping superpowers at Shangri-La: Asia-Pacific nations pursue regional security cooperation while minimizing reliance on U.S.-China rivalry at the Shangri-La Dialogue.
- Latvian centrist moves to form coalition government: Latvia's centrist leader initiates coalition talks, aiming to secure parliamentary support for a new government.
- UK defense minister’s plane has signal jammed near Russian border: A UK defense minister’s aircraft experienced signal jamming while flying close to Russian airspace, raising security concerns.
