EU Summit: Leaders Tackle Energy Prices, China ExportsWorld

<h2>Germany&#8217;s policy shift</h2> Proposals released last week by France and Germany, the EU&#8217;s two largest economies, were expected to be a focus of discussion. The two countries said there was an urgent need for measures addressing imports of chemicals and PET, the plastic widely used in packaging, and called for the ability to retaliate quickly against countries that harm the bloc. An investigation into PET imports is expected to begin soon. The paper marks a sharp turn for Germany, which only two years ago was the most vocal critic of EU anti-subsidy tariffs on Chinese-built electric vehicles. A senior EU diplomat was quoted as saying the imbalances were not limited to one sector and that thousands of jobs were being lost every month that passed without action. China has said that raising the issue of economic imbalances is an excuse to promote protectionism.

<h2>Energy and budget battles</h2> High energy prices were also on the agenda, with draft conclusions calling the issue one of critical importance. The conclusions pointed to proposals already made by the Commission, including a one-year delay to the EU&#8217;s methane emissions rules for oil and gas imports, and asked the EU executive to come up with further short-term relief measures. Separately, the EU is examining a bloc-wide windfall profit tax on oil and gas companies, after bumper profits earned while energy bills surged. Leaders will also grapple with the 2028-2034 budget, which requires unanimous approval and has produced some of the bloc&#8217;s most divisive negotiations; a special summit set for late November will try to reach agreement.

Friday&#8217;s agenda turns to Ukraine, with President Volodymyr Zelenskiy due to attend as leaders discuss the country&#8217;s funding needs for 2027. Draft conclusions also indicated leaders would express regret over a US decision to temporarily lift sanctions on Russian diesel. The summit took place against a backdrop of rising economic anxiety across Europe, which far-right parties have been exploiting in recent elections.