EU Court Upholds “Green” Label for Gas and Nuclear Projects

Last week, Europe witnessed a series of pivotal developments that highlight its shifting priorities in defense, climate policy, digital rights, trade, and sustainability. From court rulings reshaping energy and tech regulation to new laws tackling textile waste, the European Union continues to balance ambition with internal divisions and external pressures. Each of these events carries significant weight for citizens, businesses, and policymakers across the continent, reinforcing the EU’s role as both a regional powerhouse and a global actor.

EU Finalises €150 Billion Defence Loan Scheme under SAFE

• The European Union has completed the allocation of €150 billion in low-interest defence loans through its Security Action for Europe (SAFE) initiative. Nineteen member states will benefit, with Poland securing the largest share (about €43.7 billion). Other major recipients include Romania, Hungary, France, and Italy.

• The loans are designed to strengthen EU military capabilities, address security gaps (especially in equipment), and allow some cooperation with non-EU partners. There’s a 10-year grace period on repayment and favorable interest terms. Member states must submit investment plans by November 2025, with funds disbursed beginning in early 2026.

EU Proposes New Sanctions on Israel over Gaza Conflict

• European Commission President Ursula von der Leyen has proposed a tougher policy toward Israel: sanctions and partial suspension of trade. The EU may suspend around €32 million in bilateral funding. Targeted sanctions would affect far-right Israeli cabinet members and Israeli settlers in the West Bank.

• This marks a clear policy shift: previously more cautious or balanced, the EU now emphasizes humanitarian concerns, condemning tactics that it sees as weaponizing famine and restricting aid access.

Delay in Agreement on EU 2040 Climate Target, Climate Law Under Pressure

• EU member states have failed to agree on a binding 2040 emissions reduction target. Originally, the plan was to approve the target at a ministerial summit in mid-September, but the decision is now delayed. Countries like France, Poland, and Italy are pushing back; others (e.g. Denmark, Spain, and the Netherlands) support a target aiming for 90% cuts by 2040 compared to 1990 levels.

• The delay also places the EU’s update of its Nationally Determined Contribution (NDC) under the Paris Agreement in limbo just ahead of COP30 this November.

State of the European Union Speech: “Independence Moment” & Global Positioning

In her State of the European Union address, Ursula von der Leyen called this an “independence moment” for Europe. She emphasized the need for greater self-reliance in defense, trade, and global diplomacy against rising threats from Russia, tensions with large trading partners, and concerns over the global order.

Key proposals include:

• Supporting Ukraine more robustly (including a “drone alliance” funded with €6 billion).

• Using frozen Russian assets in Europe for Ukrainian recovery.

• Imposing sanctions and suspending certain financial/aid relations with Israel because of the humanitarian crisis.

• Defending a recent EU-U.S. trade deal (including a 15% tariff on some EU exports) while focusing on protecting European jobs.

Major Financing Push for Energy Efficiency in SMEs

The European Investment Bank (EIB) Group, with backing from the European Commission, launched a €17.5 billion initiative to upgrade energy efficiency in small and medium-sized enterprises (SMEs) across Europe.

• This is expected to support more than 350,000 companies over the next few years.

• The scheme is aimed at closing the investment gap: many SMEs lag behind larger firms in upgrading their buildings, machinery, insulation, etc. because financing is harder to access.

• A “one-stop shop” will help simplify access to the funding and services.

EU Extends Sanctions on Individuals Linked to Russia over Ukraine

The EU decided to prolong restrictive measures (travel bans, asset freezes, etc.) against persons and entities undermining Ukraine’s territorial integrity. These measures will now be in place until 15 March 2026.

• The sanctions cover over 2,500 individuals and entities.

• The decision also removed one deceased person from the list and did not renew another listing.

EU’s Strategic Focus on Egypt Ahead of October Summit

The EU is preparing a summit with Egypt on 22 October in Brussels, at which it plans to offer more incentives to Egypt.

• Egypt has become a key partner in migration control and energy cooperation.

• The summit will cover topics including migration, energy projects, human rights, and the war in Gaza.

• The EU’s support for Egypt has in the past included significant financial investments and budget assistance in return for cooperation on migration.

Drop in Asylum Applications in First Half of 2025

EU member states recorded 399,000 asylum applications in the first half of 2025 — about 23% fewer than in the same period of 2024.

• Most of the drop is because of fewer applications from Syrians.

• However, applications from Venezuelans rose by about one-third.

New EU-Ukraine Railway Line with EU Track Width

Ukraine has opened its first railway line using the EU standard track width, a 22-kilometer segment.

• This avoids delays previously caused when trains had to change at the EU-Ukraine border because of differing gauges.

• It is symbolic of Ukraine’s ongoing integration with EU infrastructure systems.

EU Increases Aid for Ukrainians Ahead of Winter

The EU released an additional €40 million in humanitarian funding to help Ukrainians prepare for winter, especially civilians.

• The aid includes resources for shelter materials, solid fuels for heating, and other essential winter-related needs.

• It is part of continuing efforts to mitigate the effects of Russia’s war in Ukraine on the civilian population.

EU Court Upholds “Green” Classification of Gas & Nuclear

• The EU’s General Court has rejected Austria’s lawsuit challenging the European Commission’s decision that certain natural gas and nuclear energy projects can be labelled sustainable investments under the EU taxonomy.

ECJ Overturns Hungary’s Deal for Russian Nuclear Plant

• The European Court of Justice annulled the European Commission’s approval for Hungary to build new reactors at the Paks nuclear plant using a direct contract with Russia’s Rosatom without a competitive tender process.

Germany & Luxembourg Join Pushback on “Chat Control” Law

• Germany and Luxembourg have officially opposed the EU’s proposed regulation (dubbed “Chat Control”) that would require scanning of private messages (even if encrypted) to detect child sexual abuse content.

Meta & TikTok Win a Legal Round on Supervisory Fees under DSA

• An EU court ruled in favor of Meta and TikTok in cases regarding how the European Commission calculated supervisory fees under the Digital Services Act. While it did not force refunds for now, the court ordered a revisiting of how those fees are assessed.

EU Adopts New Textile Waste Responsibility Law

• The EU has formally adopted Extended Producer Responsibility (EPR) legislation for textiles. The law means that brands and retailers will now have to pay for or arrange the collection, sorting, and recycling of textile products. Member states have ­~20 months to adapt their national laws; producers will pay fees that vary depending on factors like environmental impact (for example, fast fashion), and smaller firms get extra transition time.

These developments reflect the crossroads at which the European Union currently stands. Legal battles over energy and tech regulation show how rules are being tested in an evolving global landscape, while climate and sustainability policies reveal both ambition and contention among member states. The adoption of new waste laws signals the EU’s determination to lead in sustainability, just as privacy debates and sanctions decisions showcase its struggle to balance values with security and strategy. Taken together, last week’s news illustrates an EU determined to strengthen its resilience, safeguard its citizens, and carve a more independent path on the world stage.

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