EU Must Accelerate Defence and Competitiveness Push, Costa Tells Merz

By Mintesinot Nigussie  |  September 10, 2026

European Union countries must accelerate efforts to strengthen defence, competitiveness and economic resilience as the bloc confronts a more volatile geopolitical environment, European Council President António Costa said after talks with German Chancellor Friedrich Merz in Berlin.

Costa said Russia’s alleged hybrid activities across Europe, including drone incidents, sabotage and attacks on infrastructure, were intended to intimidate and divide the bloc but had instead reinforced European unity.

“Russia must understand that these threats will not change the European Union’s position on Russia’s war of aggression against Ukraine,” Costa said, adding that such actions would strengthen the bloc’s commitment to peace and international law.

He expressed the EU’s solidarity with Germany over what he described as an attempted Russian drone attack at Leipzig and other recently foiled attempts, placing the incidents within a wider pattern of attacks and disruption across Europe.

“It is time for Russia to end this war, not to escalate or extend it,” Costa said. He reiterated that the EU would continue supporting Ukraine during the war, any future negotiations, reconstruction and the country’s path towards EU membership.

The talks also centred on Europe’s next long-term budget, with Costa calling for a fundamental restructuring of how EU resources are allocated.

He said the bloc’s next budget should direct spending towards collective defence and security while also strengthening competitiveness, innovation and resilience. Cohesion and agricultural policies would remain important for regional development and food security, but the budget should be redesigned around industrial growth, innovation, citizen protection and border security.

Costa warned that EU governments face finite resources and would therefore need to make difficult spending choices. He called for national contributions to remain at a “reasonable level” and said new EU revenue sources would be essential to securing an overall agreement.

The European Council president backed a deal on the bloc’s next long-term budget by the end of 2026, saying businesses, farmers, researchers and citizens need greater predictability at a time of geopolitical instability.

Germany, meanwhile, has a central role to play in Europe’s defence build-up, Costa said, praising Berlin’s investments in security and defence and describing them as fundamental to the EU’s effort to develop greater collective defence capacity.

Beyond defence, Costa urged Europe to press ahead with reforms aimed at strengthening its internal market and reducing strategic vulnerabilities.

The EU’s “One Europe, One Market” agenda is intended to deliver progress in 2026 and 2027 on cutting red tape, completing the single market, securing affordable energy, supporting innovation and reducing strategic dependencies.

Costa said the work was already under way but needed to be accelerated, with the European Council scheduled to return to the competitiveness agenda in October.

The meeting with Merz was part of Costa’s tour of EU capitals ahead of upcoming European Council meetings. He said consultations with national leaders were intended to build a common understanding of the challenges facing the bloc and, ultimately, reinforce European unity.

Source: FSX Business News