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EU Leaders Split on Russia Sanctions and Gaza as They Pledge Defense Spending Hike

Defense spending will be carved out of EU debt rules following deep splits over the latest Russia sanctions.

Friedrich Merz und andere Teilnehmer des EU-Gipfels im Juni 2025.
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Overview

  • Slovakia vetoed the EU’s 18th sanctions package against Russia, with Prime Minister Robert Fico warning of threats to the country’s auto industry and gas supplies.
  • Member states failed to adopt a unified declaration on Ukraine support after Hungary’s Viktor Orban and others rejected deeper integration of the war-torn nation.
  • A report by EU foreign policy chief Kaja Kallas on Israel’s conduct in Gaza was merely noted, and no new measures were imposed on Israel.
  • Leaders agreed to boost military budgets under NATO commitments and to exclude defense outlays from the Maastricht fiscal criteria.
  • Trade negotiations with the United States remain unresolved after Washington allowed its self-imposed July 9 deadline to lapse, leaving the timeline in doubt.