This Week in Foreign Affairs — Brussels (#20, 2026)
EU and Mexico sign interim trade agreement; Sanctions expanded on Hamas, Iran, and settler violence; Council approves new support for Lebanon, Albania; Key talks on EU-China policy.
May 24, 2026 to May 30, 2026
EU and Mexico sign interim trade agreement; Sanctions expanded on Hamas, Iran, and settler violence; Council approves new support for Lebanon, Albania; Key talks on EU-China policy.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
European Commission
Commission launches in-depth foreign subsidies probe into JD.com’s proposed CECONOMY acquisition
On 27 May 2026, the European Commission opened an in-depth investigation under Regulation (EU) 2022/2560 (Foreign Subsidies Regulation) into JD.com’s planned acquisition of CECONOMY AG. The Commission identified preliminary concerns that preferential financing, tax incentives, and grants from entities likely connected to the People's Republic of China may have enabled JD.com to propose conditions potentially distorting the competitive landscape of the EU internal market. The transaction was formally notified to the Commission on 17 April 2026. The Commission now has until 2 October 2026 to complete its 90-day review. The assessment will consider the influence of possible state subsidies both during the acquisition process and on the merged firm’s operations post-transaction.
Commission details new humanitarian action measures amid global crises
On 26 May 2026, the European Commission and the High Representative adopted a Joint Communication outlining reforms to strengthen EU humanitarian action. The strategy addresses surging global needs—239 million people requiring aid in 2026—against the backdrop of funding shortfalls and conflict in regions such as Gaza, Ukraine, and Sudan. The Commission’s approach builds on three pillars: protecting humanitarian access and workers, improving supply chain performance, and reinforcing partnerships, especially with local actors. The EU has allocated €2 billion for humanitarian aid in 2026. Commission President von der Leyen and High Representative Kaja Kallas stated the EU would use its diplomatic and operational resources to safeguard aid delivery and maintain its position as a principal global donor.
Commission proposes new EU authorisation for mobile satellite services post-2027
On 26 May 2026, the European Commission proposed a Regulation to select mobile satellite service (MSS) providers for the harmonised 2 GHz band beyond the expiry of current authorisations in May 2027. The measure seeks to provide consistent EU-wide spectrum management, dividing the band for governmental (critical communications, defence) and commercial (direct-to-device, IoT) uses. The proposal aligns with the Digital Networks Act and the IRIS² Secure Connectivity programme. Executive Vice-President Henna Virkkunen underlined the strategic importance of satellite connectivity for both technological sovereignty and security.
Commission and Hungary agree reforms to unlock EU funds
On 28 May 2026, President von der Leyen announced agreement with Hungarian Prime Minister Péter Magyar on reforms targeting anti-corruption, rule of law, and academic freedom. Hungary will join the European Public Prosecutor's Office and phase out public interest trusts. The agreement paves the way for the release of €10 billion from the Recovery and Resilience Facility, €4.2 billion in Cohesion funds, and the resumption of Erasmus programme access for Hungarian students.
College of Commissioners conducts orientation debate on EU-China relations
On 28 May 2026, the College of Commissioners held a strategic debate on the EU’s relationship with China. The debate addressed economic, security, and investment challenges and opportunities. The Commission is maintaining a policy of 'de-risking, not decoupling'. The discussion will inform further policy preparation ahead of the June 2026 European Council and G7 meetings.
Commission President von der Leyen discusses energy and security with Bulgarian Prime Minister Radev
On 27 May 2026, President von der Leyen and Prime Minister Radev reviewed Bulgaria's progress under the NextGenerationEU plan, including receipt of €3.3 billion to date and pending reforms. They addressed anti-corruption legislation, restructuring of the Prosecutor General's office, and energy system upgrades, laying groundwork to unlock a further €370 million and to invest €1.2 billion in clean energy. Regional security and border challenges linked to Russia’s actions were also discussed, with Bulgaria positioned as a key actor on Europe's Eastern Flank.
Commission President emphasises Baltic security during Vilnius visit
On 25 May 2026, Ursula von der Leyen addressed Baltic leaders in Vilnius, confirming €12 billion in SAFE funding for the region and EU support for anti-drone and air defence projects. The speech highlighted the extension of cohesion policy to defence-related costs and called for improved cross-border coordination and information sharing in response to hybrid threats from Russia.
EU Legislation (Official Journal)
EU and Mexico sign Interim Trade Agreement
Council Decision (EU) 2026/1163, adopted 11 May 2026, authorises the signature of the Interim Agreement on Trade between the European Union and the United Mexican States, marking a step towards entry into force of the Modernised Global Agreement. The ITA covers trade and investment liberalisation and will be replaced by the broader MGA once it enters into force.
Expanded sanctions on Hamas, Palestinian Islamic Jihad, and Politburo
Council Regulation (EU) 2026/1175, of 28 May 2026, amends Regulation (EU) 2024/386 to extend asset freezes and travel restrictions to members of the Hamas Politburo and further clarifies the scope of restrictive measures for those influencing or supporting violent actions by Hamas and Palestinian Islamic Jihad.
Council Regulation suspends customs duties on certain fertilisers
Council Regulation (EU) 2026/1181, of 22 May 2026, suspends Common Customs Tariff duties on specified fertilisers until 31 May 2027. The measure covers quotas matching 2024 MFN imports (excluding Russia and Belarus) plus a 20% top-up, aiming to support agricultural supply and diversify away from sanctioned sources.
Restrictive measures expanded over Iran’s actions in Middle East waterways
Council Regulation (EU) 2026/1164, dated 22 May 2026, amends Regulation (EU) 2023/1529 to widen EU sanctions over Iranian military support to Russia, and now includes measures for actions undermining freedom of navigation in the Middle East.
EU amends global human rights sanctions regime over settler violence
Council Implementing Regulation (EU) 2026/1177, issued 28 May 2026, updates Regulation (EU) 2020/1998 by adding three individuals and four entities to sanctions in response to acts of violence by extremist settlers, following European Council conclusions of 19 March 2026.
Council approves assistance measure for Lebanese Armed Forces under EPF
Council Decision (CFSP) 2026/1170, adopted 28 May 2026, establishes a €100 million European Peace Facility measure to reinforce Lebanon’s territorial control, multi-domain awareness, maritime security, protection of military sites, and healthcare services.
Council Decision extends EU Special Representative’s Middle East Peace Process mandate
Council Decision (CFSP) 2026/1152 of 22 May 2026 extends Christophe Bigot’s mandate as EU Special Representative for the Middle East Peace Process to 29 February 2028, with a financial reference amount of €2,754,227.42. The role focuses on contributing to the implementation of a two-state solution and UNSC Resolution 2803 (2025).
EU Council
General Affairs Council reviews EU-UK relations and future budget framework
On 26 May 2026, the General Affairs Council prepared for the June European Council, debated the next multiannual financial framework, discussed EU-UK relations, and held a rule of law review focusing on France, Croatia, Italy, and Latvia.
Agriculture and Fisheries Council addresses fertiliser supply
On 26 May 2026, ministers discussed the availability and costs of fertilisers, trade-related agricultural matters, and the European Commission’s fertiliser action plan.
Competitiveness Council advances on research and space diplomacy
On 29 May 2026, research ministers adopted a recommendation on science diplomacy and debated the Horizon Europe 2028-2034 programme. Space policy ministers held political debates on an EU Space Act and space for economic security.
EP Committee Work
Committee on Foreign Affairs delegation concludes South Africa visit
The Foreign Affairs Committee (AFET) concluded a mission to South Africa on 29 May 2026, focusing on geopolitical competition in Africa and strengthening parliamentary dialogue. The delegation, led by Chair David McAllister (EPP, DE), met national legislators, business and civil society actors in Cape Town and Johannesburg, and the President's Political Adviser in Pretoria. Discussions addressed democracy, multilateralism, Russia’s war against Ukraine, and economic development.
MEPs discuss EU defence cooperation with Canada
The Security and Defence Committee (SEDE) delegation visited Ottawa and attended the CANSEC trade show from 28 May 2026, engaging with the Canadian parliament, government, and industry representatives. Vice-Chair Riho Terras (EPP, EE) led discussions on defence support for Ukraine, joint procurement, and industrial cooperation, with a focus on NATO’s 5% GDP defence spending target and collaboration on the SAFE loan instrument.
