EU leaders gathering in Budapest to discuss competitiveness

Leaders of the European Union are gathering in Budapest to seek ways to strengthen its economy and competitiveness.

President of the EU Council Charles Michel said the EU leaders will discuss competitiveness during the informal summit on Friday, which comes after the fifth meeting of the European Political Community on Thursday in Hungary's capital.

"We have this morning the debate on competitiveness, and I'm confident that we will agree on a statement, and this statement will be a powerful framework. We understand that we have to act to deepen the single market. We know that we have to support our industrial base, including the industry in transition," Michel told reporters at the doorstep of the meeting.

He said capital markets union and the European Investment Bank could be "very powerful" tools to "inject more money, more financial means" to support the EU's economy and to strengthen its economic development.

Michel also reiterated the need to continue supporting Ukraine, where Russia continues its "special military operation" since February 2022. "Because if we do not support Ukraine, this is the wrong signal that we send to (Russian President Vladimir) Putin but also to some other authoritarian regimes across the world," he added.

During the informal meeting, representatives of the EU member states are expected to discuss the bloc's competitiveness, relations with the US, and the situation in the Middle East, particularly Israel's decision to ban the activities of the UN agency for Palestinian refugees (UNRWA) in occupied Palestinian territories.

At the EPC meeting on Thursday, the European leaders also discussed former US President Donald Trump's comeback for a second term and its possible impact on the European economy. The European Council also held an informal meet over dinner on Thursday night.