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Europe Daily Bulletin No. 13457
EXTERNAL ACTION / Foreign affairs

Ukraine and Middle East once again on Foreign Affairs Council agenda

Foreign affairs ministers will meet again in Brussels on Monday 22 July to discuss the situation in Ukraine and the Middle East.

Ukraine. Following their traditional videoconference with their Ukrainian counterpart, Dmytro Kuleba, ministers will discuss the situation in Ukraine.

They are expected to return to the subject of military support for Ukraine, particularly in terms of munitions and anti-aircraft defence, at a time when Russian attacks are continuing, notably on energy infrastructures. 70% of Ukraine’s electricity infrastructure is thought to have been destroyed.

According to one diplomat, the EU would like to allocate a large proportion of the funds from the windfall profits from frozen assets not allocated to the ‘European Peace Facility’ (10%) to energy infrastructure repair projects.

The EU’s High Representative, Josep Borrell, and numerous heads of diplomacy are expected to ask Hungary once again to lift its block on seven decisions relating to the ‘European Peace Facility’, which concern reimbursements to Member States. In early August, the EPF is due to receive €1.4 billion from the windfall profits from frozen Russian assets.

Ministers are also due to discuss with Mr Borrell, in a closed meeting, the ‘peace mission’ of the Hungarian Prime Minister, Viktor Orbán, and the possible consequences for the informal meeting of foreign affairs ministers scheduled for late August in Budapest (Gymnich format). According to a senior European official, the High Representative has not yet decided whether to attend and chair the Gymnich meeting - co-chairing with the Hungarian minister, as is the case for the informal meeting - or not. Mr Borrell is expected to wait to see the positions of Member States before taking any decisions. If the Gymnich meeting were to take place, some ministers are expected to be present in Budapest, while other Member States are expected to send a lower level representative. Some Member States are also waiting for the Council discussion before making up their minds.

The Council may also discuss hybrid threats and attacks affecting Member States. The Council working group has agreed to a new sanctions regime concerning Russia’s hybrid threats in the EU, but also in third countries. Several sources have expressed the hope that the framework will be formally adopted in September, as the legal texts are yet to be drafted.

Middle East. The Council will then hold a debate on the situation in the Middle East. It is expected to return to the situation in Gaza and the tensions that continue to rise on the Lebanese-Israeli border. According to a senior European official, the High Representative has held talks with various players to avoid any escalation.

The ministers are expected to reaffirm their political support for the ongoing work on the redeployment of the EUBAM Rafah mission. While technical preparations are progressing, according to one source, the parties concerned - Israel, the Palestinian Authority and Egypt - have not yet given their agreement to redeployment. If they agree, and if the security conditions are met, the mission could be deployed in 6 to 7 weeks, according to one source.

The increasingly complicated economic situation of the Palestinian Authority may also be addressed. On Friday 19 July, the European Commission and the Palestinian Authority agreed on emergency financial aid and on the principles of a recovery and resilience programme (see other news). “The financial situation of the Palestinian Authority is disastrous at the moment and it is no one’s interest for the Authority to collapse. It is clear that it needs more money”, stressed a European source. On 11 July, the G7 called on Israel to release all withheld customs clearance revenues and to remove measures aggravating the economic situation in the West Bank (see EUROPE 13451/18).

The situation in the West Bank may be the subject of discussions as Israel has recently announced new settlements and the largest confiscation of land for three decades (see EUROPE 13446/2).

The Council may discuss preparations for the future Association Council with Israel, including its agenda. “It is important that this Association Council takes place soon, because we have a lot to discuss with Israel, and that it has a balanced programme”, stressed a European source. According to the source, Member States are expected to arrive at a balanced approach in which the situation in Gaza and the regional situation are seriously discussed, as well as other issues relating to bilateral relations between the EU and Israel.

After speaking publicly on the subject on Thursday (see EUROPE 13456/10), on Friday Mr Borrell deplored the resolution adopted by the Knesset the previous day opposing the creation of a Palestinian state. “There is a strong consensus in the international community that the only sustainable solution that will bring peace and security to the Middle East is the two-state solution”, recalled the High Representative in a statement on his behalf, as Hungary once again blocked a statement on behalf of the EU.

EIB. Over lunch, ministers will meet the President of the European Investment Bank (EIB), Nadia Calviño. They are expected to discuss the financing of ‘Global Gateway’ projects, defence investment and EIB financing in Ukraine and the EU’s southern neighbourhood. The EIB has updated the definition of dual-use goods and infrastructure eligible for financing by its group and has agreed to facilitate the financing of small and medium-sized enterprises (SMEs) in the security and defence sector by opening up dedicated intermediated financing (see EUROPE 13407/7).

Digital diplomacy. The Council will shortly be tackling the issue of digital diplomacy, just over a year after the Council defined priority actions to strengthen the EU’s role in global digital affairs (see EUROPE 13209/24). It will provide an update on the implementation of these actions.

Armenia. Finally, ministers are expected to welcome, in their conclusions, the opening of discussions on visa liberalisation with Armenia and to adopt an assistance measure under the ‘European Peace Facility’ to supply non-lethal equipment to Yerevan. (Original version in French by Camille-Cerise Gessant)

Contents

EXTERNAL ACTION
EUROPEAN PARLIAMENT PLENARY
ECONOMY - FINANCE - BUSINESS
SECTORAL POLICIES
FUNDAMENTAL RIGHTS - SOCIETAL ISSUES
NEWS BRIEFS