EU Leaders Discuss Iran War Impact, €2 Trillion Budget, and Strait of Hormuz in Cyprus

EU leaders concluded two days of talks in Nicosia, Cyprus, on April 24, 2026, focusing on the war in Iran's impact on Europe's security, finance, and energy, alongside discussions for the upcoming €2 trillion seven-year EU budget.

European Commission President Ursula von der Leyen emphasized the intrinsic link between European and global security, citing threats in the Strait of Hormuz affecting European factories. She proposed moving beyond reactive crisis management, expanding missions, and scaling up defense production to combat drone threats. European Council President António Costa stressed the vital need for the immediate, unrestricted reopening of the Strait of Hormuz, announcing a 50-country coalition led by France and the UK to restore navigation freedom.

Leaders from Lebanon, Egypt, Syria, Jordan, and the Gulf Cooperation Council also met their EU counterparts in Nicosia to foster closer ties. Costa highlighted Europe's support for Ukraine, its role in Middle East peace, protection against economic shocks, and preparation for the ambitious EU budget. The proposed €2 trillion budget for 2028-2034 faces opposition from more frugal nations, with Germany and the Netherlands advocating for significant reductions.

Irish Taoiseach Micheál Martin acknowledged the need for compromise on the budget, noting Ireland's priorities include the Common Agricultural Policy and competitiveness. Ireland will lead much of the budget work during its EU presidency and strongly opposes any new corporate tax as an own resource in the Multiannual Financial Framework. Von der Leyen also noted a €25 billion increase in Europe's fossil fuel import bill since the conflict began, announcing an electrification action plan to boost independent, clean energy sources.