As geopolitical tensions rise, the European Union and Member States are taking steps towards strengthening their defence. Alongside other important questions, this also raises concerns about trade-offs between defence spending and other areas, such as social spending, at both EU and national levels. AK EUROPA spoke with Claes-Mikael Ståhl, Deputy General Secretary of the European Trade Union Confederation (ETUC), about current EU defence policy from a workers’ perspective.

On 10 December 2025, the European Commission presented the European Grids Package. The package includes proposals to improve the governance of cross-border energy infrastructure planning, speed up permitting procedures and ensure more effective mechanisms to share the costs and benefits of cross-border projects.

After a prolonged delay, the European Commission unveiled its proposal for the ‘Industrial Accelerator Act’ (IAA) on 4 March 2026. The proposed legislation is designed specifically to boost demand for low-carbon technologies and for products manufactured in Europe. The aim is to ensure resilient supply chains in strategic sectors, strengthen European industry and safeguard jobs in the EU. Although an effective industrial policy strategy is long overdue, AK warns that the social dimension is being sidelined.

With its proposal for the Multiannual Financial Framework 2028–2034, the European Commission launched the important yet controversial debate on the EU budget in mid-2025. The focus is on increased investment in competitiveness, security and defence. However, the European Parliament considers the draft to be insufficiently ambitious and is calling for a larger budget. In particular, the planned consolidation of funding programmes and cuts in traditional policy areas have met with criticism.

China is rapidly driving forward developments in the fields of artificial intelligence and robotics. Within this framework, the government's development initiatives emphasize strategic planning, targeted assistance, and systematic execution.

Since the new Middle East conflict and the Hormuz Strait blockade, fossil fuel prices in the EU have surged. The EU Commission is now responding with the ‘AccelerateEU’ initiative. Alongside short-term measures, the focus is once again on accelerating the energy transition.

As part of the EU’s current deregulation agenda, there is a risk that efforts toward sustainable finance will be undermined. Financial market stability could also be jeopardized. Meanwhile, the financial lobby is pushing to lower key regulations, such as the capital requirements for banks. We spoke with Isabelle Buscke about these and other challenges.

Due to a shortage of affordable and sustainable housing, Europe is facing a housing crisis. Over the past ten years, rents in the EU have risen by more than 20 per cent on average, whilst residential property prices have increased by more than 60 per cent. In view of this precarious situation, the EU has taken action: shortly before Christmas, the Commission presented its plan for affordable housing, and in mid-March the final report of the European Parliament’s Special Committee on the Housing Crisis was adopted in plenary.

As announced, the European Commission has presented its proposal for the 28th regime. The aim of EU Inc. is to create a Europe-wide limited liability company form that will enable businesses to be set up within 48 hours, for less than 100 euros and without minimum capital requirements. From the standpoint of employees, the EU Inc. proposal has received considerable criticism, especially due to insufficient provisions for safeguarding workers and facilitating their involvement in organizational decision-making processes.

The health and care sectors will require more staff in the future, which means public spending will increase. However, these expenses should not be viewed only as a financial burden. As the sectors expand, they also generate important economic and social benefits. Therefore, when evaluating costs in health and care, their positive impact on society and the economy must also be considered.