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EU: From Ukraine to AI - The Major Challenges of 2026

Published December 30, 2025, 12:15
EU: From Ukraine to AI - The Major Challenges of 2026

As the year draws to a close, the European Union and its 27 member states are reflecting on 12 months of turbulent geopolitics and policy-making. From the war in Ukraine to strained transatlantic relations, several major challenges that have been behind public discussions are here to stay. The challenges are significant for 2026 as Russia's war of aggression shows no signs of de-escalation, the EU is in a relationship with the United States unlike any before, the Union is struggling to keep the economy afloat, and technology continues to develop rapidly. The prospect of war with Russia has prompted the need for European countries to rearm, shifting priorities from the green transition to increased spending on defense. The EU is seeking to continue its effort to simplify its regulatory rules for the benefit of competition. However, observers and critics fear that significant manuals – such as the pioneering laws on climate and digital regulation – may further disrupt the framework amid pressure from member states and from across the Atlantic. The EU has agreed to provide Ukraine with 90 billion euros for 2026 and 2027 to fund its defense against Russia. The US has taken the initiative for peace talks between Ukraine and Russia, presenting a 28-point plan that was initially seen as a retreat on core Kremlin demands. The EU is now considering the prospect of direct talks with Russia, with Putin expressing readiness to engage in dialogue with French President Macron. Addressing these challenges requires close cooperation between member states and adaptation of EU policies.