Outcome of the meetings of EU leaders, 21-22 March 2024

Written by Ralf Drachenberg and Rebecca Torpey.

At the March European Council meeting, discussions focussed on the war in Ukraine, security and defence, the Middle East and enlargement. With a new sense of urgency, EU leaders reiterated their steadfast support for Ukraine, calling on the Council to rapidly adopt an eighth support package for Ukraine. Regarding security and defence, they agreed on the need to increase defence readiness and boost the defence industry, but did not agree on ways of promoting the defence sector. On the Middle East, EU leaders finally agreed on a common message, notably calling for an ‘immediate humanitarian pause leading to a sustainable ceasefire’. On enlargement, they decided to open accession negotiations with Bosnia and Herzegovina. EU leaders also adopted conclusions on migration, agriculture and the European Semester. The meeting was followed by a Euro Summit.

1.     General

The day before the European Council meeting, EU leaders and social partners took part in the Tripartite Social summit. And, on the day of the meeting, 21 March, Charles Michel, as well as leaders from Member States party to the EU Nuclear Alliance Declaration, attended the first Nuclear Energy Summit; chaired by Alexander De Croo, Belgian Prime Minister and Rafael Grossi, Director-General of the International Atomic Energy Agency, with a total of 34 countries from around the world.

Addressing EU leaders at the start of the meeting, the President of the European Parliament, Roberta Metsola, emphasised that ‘delivering on our priorities is the best tool to push against disinformation’. As flagged up in the EPRS Outlook, the European Council had a meeting with UN Secretary-General António Guterres and also met with the leaders of the countries of the European Economic Area (EEA), namely Iceland, Norway and Liechtenstein, to mark the 30th anniversary of their relationship. This European Council meeting is expected to be the last at which Portugal’s Prime Minister, Antonio Costa, and Irish Taoiseach, Leo Varadkar, have represented their countries.

2.     European Council meeting

Ukraine

President Zelenskyy took part in the meeting by video-conference, briefing EU leaders on Ukraine’s most urgent military needs, whilst also addressing accession, trade liberalisation, and the use of frozen Russian assets. With Ukraine now facing its third year of war, the European Council reiterated the EU’s steadfast support, stressing that Russia was to be held accountable for the war and all related crimes. It welcomed a number of steps taken to support Ukraine, including: i) the increased capacity of the EU Military Assistance Mission; ii) the Council Decision regarding the establishment of the Ukraine Assistance Fund; iii) the agreement of a number of bilateral security commitments between Ukraine and some EU Member States; iv) the strengthening of the EU Advisory Mission in Ukraine; and v) the Czech-led initiative launched to provide ammunition for Ukraine urgently.

With a new sense of urgency, Charles Michel noted that ‘our foremost task is the swift provision of military aid to Ukraine’. EU leaders underlined the need to ’speed up delivery and intensify military assistance’, especially for weapons (notably ammunition) urgently needed by Ukraine. However, opinions diverged on ways of funding this armament support.  

The European Council considered one option put forward by the Commission President and the High Representative (HR/VP), which is to use the windfall profits from frozen Russian assets to finance military equipment for Ukraine. Whilst some Member States, such as Estonia’s Prime Minister Kaja Kallas, strongly supported this avenue for funding Ukraine’s defence needs, others considered the move still to be premature. Ahead of the meeting, Dutch Prime Minister Marc Rutte and Luxembourg’s Luc Frieden emphasised that the proposal had to be legally sound, with Frieden stating that the EU’s financial stability and credibility needed to be protected. In the proposal, 90 % of the profits would go to the European Peace Facility (EPF), where it could be used for military support, and 10 % to reconstruction and increasing Ukraine’s defence industry capacity. While Belgian Prime Minister De Croo, whose country currently holds the Council Presidency, agreed that it was ‘pointless to invest in reconstruction, if you risk losing the country’, he added that ‘today it is maybe too early to do that’ in respect of that option. The European Council invited the Council to take work forward on the use of frozen assets for Ukraine, and also to rapidly adopt the decision on the eighth support package for Ukraine as part of the EPF.

Regarding sanctions, EU leaders welcomed the 13th package of sanctions, and emphasised the need to ensure effective implementation, by avoiding circumvention through third countries, and through enforcement, notably by subsidiaries of EU companies abroad. The European Council requested the Council and Commission work to improve the ‘exchange of information, strengthen implementation, enhance the EU and Member States’ action with third countries, and close all loopholes both inside and outside the Union’. EU leaders also called on the HR/VP and the Commission to prepare further sanctions against Belarus, North Korea, and Iran. As Iran has been supplying Russia with unmanned aerial vehicles, used against the civilian population in Ukraine, the European Council has expressed its concern following reports that Iran could also transfer ballistic missiles and the related technology to Russia. Building on the G7 statement, EU leaders warned that, were it to occur, they would respond in a coordinated and swift manner with international partners.

EU leaders denounced the recent ‘illegal so-called elections organised by Russia in the temporarily occupied Ukrainian territories’. They reiterated their continued support to the Republic of Moldova and Georgia, which face numerous challenges due to Russia’s war, and welcomed Member States’ bilateral commitments to support the European Union Partnership Mission (EUPM) in Moldova.

Main message of the EP President: There is nothing bigger than the threat posed to peace by Russia. We must continue to do everything within our power to help Ukraine to continue to defend itself.

Security and defence

As Europe faces its biggest security threat since World War II, Michel insisted that a ‘paradigm shift’ was needed in terms of European defence. EU leaders agreed that Member States would have to take action in a number of areas to increase the EU’s defence readiness and sovereignty, including: i) increasing defence spending considerably; ii) incentivising development and joint procurement to address critical EU capability gaps; iii) enhancing cooperative/joint defence investment; iv) increasing the resilience of the European defence industry and its capacity to produce innovative defence products; v) incentivising further integration of the European defence market across the Union; vi) enhancing rapid response and timely identification of bottlenecks in supply chains; and vii) addressing labour and skills shortages in the defence industry through investment. This will require significant funds. Ahead of the meeting, 14 Member States had sent a letter to the EIB calling for a policy change on defence investment. This approach found broad support, with EU leaders inviting the European Investment Bank (EIB) to adapt its lending policy to the defence industry. 

Amongst the proposals on the table for the financing of defence projects was the issuing of defence bonds. Several countries support the idea, including Greece, France, and Estonia. However, the ‘frugal’ countries – Austria, Denmark, Germany, the Netherlands and Sweden – expressed scepticism. Without unanimity, there was no mention of this approach in the conclusions. However, EU leaders did request that the Council and Commission examine all options for mobilising funds for the defence industry and report on this at the June meeting.

As anticipated, the Council, the HR/VP and the Commission were invited to swiftly take work forward on the European Defence Industrial Strategy and the proposal for a European Defence Industry Programme. The latter aims at supporting the defence industry, by providing €1.5 billion in funds over 3 years. EU leaders also called for accelerated implementation of the Strategic Compass.

Middle East

The European Council managed to agree quite substantial conclusions on the Middle East. Michel said that EU leaders understood the importance of giving a ‘powerful and united message’. For the first time since the 7 October attack by Hamas, the initial lines of the Middle East conclusions were dedicated to the humanitarian situation, perhaps a sign of the urgency of the matter in the view of EU leaders; this topic was also one of the key issues mentioned by EU leaders as they entered the meeting. The European Council called for an ‘immediate humanitarian pause leading to a sustainable ceasefire, the unconditional release of all hostages and the provision of humanitarian assistance’. At previous European Council meetings, EU leaders had found it difficult to agree on joint wording for a humanitarian pause, but in the lead-up to the summit, it seemed increasingly possible – as Commission President Ursula von der Leyen and others stated – to use such wording. As Varadkar indicated, Austria and Czechia were the two countries blocking language calling for a ceasefire. Nevertheless, the European Council agreed to include wording on a ‘sustainable ceasefire’.

The European Council also reiterated its condemnation of the Hamas terrorist attacks and recognition of Israel’s right to defend itself in line with international law, and called for the immediate unconditional release of hostages. Accordingly, EU leaders also called on the Council to accelerate work on the adoption of further restrictive measures against Hamas. EU leaders signalled support for independent investigations into all allegations of sexual violence, and took note of UN reports on the appalling sexual violence during the 7 October attacks. Whilst emphasising the essential services provided by UNRWA in Gaza and the broader region, they welcomed the UN investigation and external review regarding allegations that 12 staff members had participated in the 7 October attacks.

On the changing tone in the European Council, Varadkar said that Israel had ‘squandered the support they had’ in the initial aftermath of the 7 October terrorist attacks. As a result of the Israeli response, thousands of civilians have died and over a million have been displaced, in addition to massive destruction of civilian infrastructure, with Guterres warning that famine was imminent in Gaza. In that context, EU leaders welcomed the Amalthea Initiative, but said that ‘full, rapid, safe and unhindered humanitarian access’ was necessary. Currently, over a million displaced Palestinians are seeking refuge in Rafah. Hence, EU leaders called on the Israeli government not to undertake a ground operation in Rafah, which would ‘worsen the already catastrophic humanitarian situation’.

Moreover, EU leaders condemned the Israeli government’s decisions to expand illegal settlements across the occupied West Bank. Despite some division on the topic in the run-up to the meeting, the European Council also called on the Council to accelerate work on the adoption of relevant targeted restrictive measures against the perpetrators of extremist settler violence in the West Bank and Jerusalem, and condemned their actions. In addition, EU leaders stressed the importance of adhering to the order of the International Court of Justice – highlighting that violations of international humanitarian law need to be investigated and accountability ensured.

Finally, EU leaders reaffirmed the EU’s commitment to a sustainable peace based on the two-state solution, and called on both sides not to participate in any action that would undermine it. They also called on all actors, notably Iran, to avoid escalatory actions in the region, whilst welcoming the EU Operation ASPIDES to protect seafarers in the Red Sea, the Gulf of Aden and the broader region.

Enlargement

Following the Commission’s positive recommendation on 12 March, the European Council decided to green-light the start of accession negotiations with Bosnia and Herzegovina (BiH). The conclusions stipulate that the Commission can prepare the negotiating framework once all relevant steps set out in the Commission’s recommendation of 12 October 2022 have been taken. Before the meeting, a number of leaders had stated their support for the opening of accession negotiations with BiH, such as Austrian Chancellor Karl Nehammer and Croatian Prime Minister Andrej Plenković. In addition, other leaders were keen to point out that BiH still has a lot of work to do before progressing to the next step of the process. Although technically separate, some leaders have linked progress in the accession process for Ukraine and Moldova to that of BiH and other countries in the Western Balkans, and vice versa. On 20 March, at a meeting of ambassadors, Lithuania reportedly stated that it could not agree to the next step for BiH without stronger positive language on Ukraine’s accession timeline. In the end, the European Council welcomed the progress of Ukraine and Moldova, and invited the Council to ‘swiftly adopt’ their negotiating frameworks, but without giving any specific timeline. However, Michel did state that he hoped the first intergovernmental conference with Ukraine would take place before the Belgian Presidency ends (on 30 June 2024).

Main message of the EP President: An enlarged EU that is based on clear objectives, criteria and merit, will always serve as our best investment in peace, security, stability, and prosperity.

Migration

EU leaders reviewed the state of play on migration, as outlined in the Commission’s communication of 12 March. In line with their conclusions of December 2023, EU leaders reaffirmed the EU’s commitment to continue pursuing a comprehensive approach to migration. They supported the Commission’s resolve to strengthen all EU tools to effectively counter human trafficking and smuggling, while in parallel launching a Global Alliance to respond to this global challenge.

Main message of the President of the European Parliament: Metsola assured leaders that the European Parliament will keep working until the last moment to deliver on the new migration package. 

Agriculture

EU leaders discussed the challenges facing the European agricultural sector and the ongoing efforts at European level to respond to those challenges. In that context, the European Council encouraged the Council and Commission to take forward work in a number of areas, including: i) reducing administrative burden; ii) strengthening the role of farmers in the supply chain; iii) fair competition internally and globally; and iv) addressing issues related to trade with Ukraine.

3.     Euro Summit

Work on strengthening the capital markets union was centre-stage at the Euro Summit meeting on Friday 22 March. Furthermore, EU leaders reflected on the current economic situation and the state of policy coordination. Discussions will continue at the April special European Council meeting.

Read this briefing on ‘Outcome of the meetings of EU leaders, 21-22 March 2024‘ in the Think Tank pages of the European Parliament.