Over the past decade, the EU has experienced major macroeconomic imbalances and serious divergences in competitiveness. These have both exacerbated the negative effects of the financial crisis that began in 2008 and prevented the effective use of common monetary policy measures to resolve them. In 2011, the EU set up the macroeconomic imbalance procedure to identify and correct such imbalances at national level, particularly those with the potential to spill over and affect other EU countries. Source : © European Union, 2025 - EP

EU-Russia relations have been strained since 2014 because of Russia’s illegal annexation of Crimea, support for separatist groups in eastern Ukraine, destabilisation policies in the neighbourhood, disinformation and interference campaigns and internal human rights violations. After Russia launched its unprovoked, unjustified and illegal war of aggression against Ukraine on 24 February 2022, the remaining political, cultural and scientific cooperation was suspended. Source : © European Union, 2025 - EP

The Banking Union is based on a proposal that the European Commission presented in 2012, a few years after the severe financial crisis had started to unfold in the EU. The key innovation was to transfer responsibility for the day-to-day supervision of the largest banks in the euro area from national to European level. From then on, the European Central Bank (ECB) was put in charge of supervisory tasks, which it needed to keep strictly separate from its activities on monetary policy. Another institution – the Single Resolution Board (SRB) – was set up at European level to deal with the failure of large banks. The Commission had proposed a third element – a European deposit insurance scheme – but so far this has not found the necessary political support. Source : © European Union, 2025 - EP

The European Economic Area (EEA) was set up in 1994 to extend the EU’s provisions on its internal market to the European Free Trade Area (EFTA) countries. The EEA’s parties are Norway, Iceland and Liechtenstein. Switzerland is a member of EFTA, but not of the EEA. The EU and Nordic EEA EFTA partners (Norway and Iceland) are also linked by various ‘northern policies’ and forums that focus on the rapidly evolving northern reaches of Europe and the Arctic region as a whole. Source : © European Union, 2025 - EP

Differences between the United States (US) and the European Union (EU) over the regulation of online platforms have taken on a new dimension under the Trump administration. Senior members of the US administration have strongly criticised the EU for 'limiting free speech' and have called the EU's content moderation law 'incompatible with America's free speech tradition'. Much of the debate is informed by misconceptions and misunderstandings. The differences between the US and EU hate speech regimes are striking, largely for historical reasons. The First Amendment to the US Constitution provides almost absolute protection to freedom of expression. By contrast, European and EU law curtails the right to freedom of expression. Article 10 of the European Convention of Human Rights, which applies to all EU Member States, states that freedom of expressions 'carries with it duties and responsibilities'. In a democratic society, restrictions may be imposed in the interest, among others, 'of national security, territorial integrity or public safety, for the prevention of disorder or crime, for the protection of health or morals, for the protection of the reputation or rights of others'. EU legislation criminalises hate speech that publicly incites to violence or hatred and targets a set of protected characteristics: race, colour, religion, descent or national or ethnic origin. Even though legislation in EU Member States varies widely, many have extended protection from hate speech to additional characteristics. In light of the exponential growth of the internet and the use of social media, the debate about hate speech has essentially become about regulating social media companies. The focus has been on the question of whether and to what extent service providers are responsible for removing hate speech published on social media platforms. The US has opted not to impose any obligation on social media companies to remove content created by third parties, merely granting them the right to restrict access to certain material deemed to be 'obscene' or 'otherwise objectionable'. By contrast, the EU has adopted regulation that obliges companies to remove offensive content created by third parties, including hate speech, once it is brought to their attention. Social media companies also self-regulate, by adopting community guidelines that allow users to flag hate speech and ask for its removal. Source : © European Union, 2025 - EP

The Trans-European Networks (TENs) are jointly funded by the European Union and the Member States. Financial support from the EU serves as a catalyst, with the Member States providing the bulk of the financing. The financing of the TENs can be complemented by Structural Fund assistance, aid from the European Investment Bank (EIB) or contributions from the private sector. A major reform was introduced across the TENs with the establishment of the Connecting Europe Facility (CEF) in 2013, renewed in 2021. Source : © European Union, 2025 - EP

The World Trade Organization (WTO) works to guarantee a rules-based international trading system. Despite the impasse in trade negotiations, ways to modernise WTO rules and address new global challenges are being explored. Under the Lisbon Treaty, Parliament legislates jointly with the Council, has to approve any changes or new WTO agreements and has an important scrutiny role on international trade policy. Source : © European Union, 2025 - EP

On 1 July 2013, Croatia became the 28th (now 27th) Member State of the European Union. Since then, no other countries have joined the EU, and the UK left the EU on 31 January 2020. Accession negotiations and chapters have been opened with Albania, Montenegro, Serbia and Türkiye. North Macedonia opened accession negotiations in July 2022, and Bosnia and Herzegovina in March 2024. Kosovo submitted its application for EU membership in December 2022. In December 2023, the EU decided to open accession negotiations with Moldova and Ukraine and to grant candidate country status to Georgia. In late November 2024, the Georgian Government decided not to pursue the opening of accession negotiations and rejected EU financial support until 2028. (5.5.6 and 5.5.7). Source : © European Union, 2025 - EP

The EU’s Eastern Partnership policy, initiated in 2009, covers six post-Soviet states: Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine. It was created to support political, social and economic reform efforts in these countries with the aim of increasing democratisation and good governance, energy security, environmental protection, and economic and social development. All the participating countries (except Belarus whose membership is suspended) send delegations to the Euronest Parliamentary Assembly. Source : © European Union, 2025 - EP

The origins of the European Parliament lie in the Common Assembly of the European Coal and Steel Community (ECSC), which became the common assembly of the three supranational European communities that existed at the time. The assembly subsequently acquired the name ‘European Parliament’. Over time, the institution, whose members have been directly elected since 1979, has undergone profound changes, evolving from an assembly with appointed members to an elected parliament that is recognised as a political agenda-setter of the European Union. Source : © European Union, 2025 - EP

The trans-European networks (TENs) in transport, energy and telecommunications are developed to connect the regions of the EU and to contribute to the growth of the internal market and employment. They strengthen economic, social and territorial cohesion. The trans-European transport network (TEN-T) has evolved over time, including a fundamental reform in 2013 and a major revision proposed in 2021. The energy infrastructure (TEN-E) guidelines were adapted to the European Green Deal in 2022. Source : © European Union, 2025 - EP

The EU’s Common Foreign and Security Policy (CFSP) was established in 1993 and has since been strengthened by subsequent treaties. Today, Parliament regularly contributes to the development of the CFSP, in particular by scrutinising the activities of its institutional actors and bodies: the High Representative of the Union for Foreign Affairs and Security Policy, who also serves as Vice-President of the European Commission; the European External Action Service (EEAS); the EU Special Representatives (EUSRs) and the EU delegations. Parliament’s budgetary powers can also shape the scale and scope of the CFSP. Source : © European Union, 2025 - EP

Development policy lies at the heart of the European Union’s external policies. It aims to reduce and ultimately eradicate poverty and it is central to the EU’s response to the UN 2030 Agenda for Sustainable Development (the 2030 Agenda). Its objectives include fostering sustainable growth, defending human rights and democracy, achieving gender equality, promoting peace and inclusive societies and tackling environmental and climate challenges. The EU works on a global scale and is the world’s largest donor of development assistance. Cooperation with EU Member States and alignment with the 2030 Agenda facilitate the efficient delivery of aid. Source : © European Union, 2025 - EP

The EU, the United States and Canada remain close partners, united by democratic values and shared historic ties. Despite navigating complex global challenges, including trade tensions, they prioritise dialogue and cooperation in areas such as foreign policy, security and regulatory affairs. The EU emphasises sustaining these relationships and adapting them to shared challenges, thus ensuring stability and resilience while upholding the international rules-based order. Source : © European Union, 2025 - EP

Over the years, the EU has been moving away from the production of labour-intensive, low-value products in order to specialise in higher-value, branded goods. With its open economy, trade is essential to the EU, which is a founder of and key player in the World Trade Organization (WTO). In addition, to overcome trade barriers and level the playing field for its businesses, the Union negotiates a number of free trade agreements (FTAs). Source : © European Union, 2025 - EP

The European Arrest Warrant (EAW) is a judicial decision issued by a Member State with a view to the arrest and surrender by another Member State of a requested person for the purposes of a criminal prosecution or a custodial sentence. Between 2015 and 2022, 131 164 EAWs were issued, and 43 478 persons were surrendered, an average of more than 16 000 and nearly 5 500 per year respectively. In the internal security strategy published on 1 April 2025, the Commission stated that it would 'assess the need to further strengthen' the EAW. Source : © European Union, 2025 - EP

This briefing summarises the main issues at stake at the 78th World Health Assembly (WHA) which will take place in Geneva, Switzerland, from 19 to 27 May 2025. The WHA is the highest decision-making body of the World Health Organization (WHO), gathering annually, and composed of delegations from all 194 Member States (MS). The WHA discusses and votes on the decisions and resolutions prepared by either WHO’s Executive Board, its Director-General, or proposed by groups of MS. Source : © European Union, 2025 - EP

The European arrest warrant (EAW) is a judicial decision issued by a Member State with a view to the arrest and surrender by another Member State of a requested person for the purposes of a criminal prosecution or a custodial sentence. Between 2005 and 2022, some 231 005 EAWs were issued, and 69 688 persons were surrendered. The functioning of the EAW system – as set out in this infographic – requires a high level of trust between the judicial authorities of the issuing and the executing Member State, which has at times generated challenges and tensions. In the internal security strategy published on 1 April 2025, the Commission stated that it would 'assess the need to further strengthen' the EAW. Source : © European Union, 2025 - EP

Under the European Climate Law, the EU must reduce its net greenhouse gas (GHG) emissions by 55 % by 2030 compared with 1990, and reach climate neutrality by 2050 (see trajectory in Figure 1). Over the 2005-2023 period, net emissions in the EU decreased by 30.5 % (37 % compared with 1990). The land use, land-use change and forestry (LULUCF) sector is a significant carbon sink, although its capacity to increase carbon sequestration is under pressure, while the EU emissions trading system (ETS) is one of the most effective mitigation tools, having reduced emissions by the sectors it covers by 48.1 % since 2005. Sectors for which Member States are obliged to reduce GHG emissions under the 'effort-sharing' legislation decreased their emissions by 17.1 % in 2023 compared with 2005. Investments tracked as climate-related spending account for 42.6 % of the total grants and loans approved under the Recovery and Resilience Facility (RRF) and the REPowerEU initiative. By 30 June 2024, Member States had to update their national energy and climate plans (NECPs), aligned with the EU's increased 2030 targets. As of May 2025, three final plans are still pending. A May 2025 assessment of submitted final NECPs show a significant gap reduction from earlier analysis, with net GHG emissions estimated to decrease by 54 % by 2030, compared with 1990 levels. In a 2023 survey, 46 % of EU citizens identified climate change as one of the four most serious problems facing the world. Most Europeans (56 %) said it was the responsibility of the EU or the national government to tackle climate change, followed by business/industry (53 %); 35 % found it to be a personal responsibility. This briefing is one in a series covering all EU Member States. Source : © European Union, 2025 - EP

A sound, resilient banking sector that efficiently allocates capital is essential for EU competitiveness. To achieve it, the EU should primarily focus on completing the banking union. It should also simplify capital and other loss-absorbency requirements, and pool decision-making on macroprudential buffers in the banking union at the European level. The forthcoming report on banking, which the European Commission has pledged to publish in 2026, is the right horizon for addressing these aims. Given the stark risk environment, their implementation should not result in any decrease of aggregate capital requirements. Source : © European Union, 2025 - EP

After a political lull of almost a decade, the European Union (EU) and the Community of Latin American and Caribbean States (CELAC) relaunched their strategic partnership in Buenos Aires, Argentina, on 27 October 2022. The 2022-2023 bi-regional roadmap, together with the EU's joint communication of 7 June 2023 on a new agenda for Latin America and the Caribbean (LAC), prepared the ground for the successful third EU–CELAC summit that took place in Brussels on 17 and 18 July 2023 under the Spanish Presidency of the Council. Two years later, the partners are preparing for the next EU–CELAC summit, due to take place in Santa Marta, Colombia, on 9 and 10 November 2025. This leaders' meeting is deemed crucial for the EU to deepen its commitment to LAC and advance the strategic partnership. From the EU's perspective, the Latin American region is key – not only politically, given the recent geopolitical challenges, and economically, because of its great potential as a market for industrial products, but also as a stable supplier of renewable energy sources and critical minerals such as lithium and copper that are crucial for the transformation of the global economy. Geopolitical developments have made it all the more urgent to intensify relations between the EU and CELAC: China has become a dominant player in LAC and is today a strong competitor for the EU and the United States (US). The US policy approach towards LAC under President Donald Trump is strained; this could be an opportunity for the EU to present itself as a reliable partner to the region. The promotion of inclusive and, in particular, mutually beneficial agreements on trade and on raw materials could be an advantage for the EU over its competitors. The summit in Santa Marta provides a chance to elevate the EU–CELAC relationship to the next level. The main tasks will include deepening and concretising the bi-regional relations on issues such as trade and investment and the green and digital transitions, and further strengthening cooperation on other issues such as the fight against organised crime. A litmus test for the strategic partnership will also be whether the partners manage to finalise the two key pending international agreements with Mexico and Mercosur respectively. Source : © European Union, 2025 - EP

Military drones have become a defining feature of modern warfare, as seen in Ukraine where they have caused more casualties than any other weapon. Their widespread use spans reconnaissance, strikes, logistics and naval operations, with both state and non-state players increasingly relying on unmanned systems. The European Union (EU) has prioritised drone development and countermeasures, funding and coordinating research and capability development through the European Defence Fund and Permanent Structured Cooperation. EU leaders have committed to strengthening the defence industry and made major investments in drone production, innovation, and interoperability. The EU is also fostering synergies between the civilian and the defence sectors, addressing strategic dependencies and collaborating with NATO. Furthermore, the European Defence Agency is advancing unmanned aerial system technology through joint projects and its innovation hub. Meanwhile, drone regulation remains fragmented: civilian drones are subject to comprehensive EU rules, while military drone use falls under international law. Legal concerns persist, especially regarding proportionality, accountability and lethal autonomous weapons (LAWS). The European Parliament has called for transparency, adherence to international law and a ban on LAWS, while supporting defence innovation and proposing an EU drone package to stimulate joint procurement and industry participation, particularly from Ukraine. EU lawmakers continue to stress the need for ethical guardrails, robust export controls and a coherent regulatory framework that balances innovation with international legal obligations. The Parliament also emphasises the importance of meaningful human control over all lethal decisions and insists that military artificial intelligence include strong accountability mechanisms. Source : © European Union, 2025 - EP

Media literacy – the skills, knowledge and understanding that allow people to use media effectively and safely – is crucial for citizens to navigate the modern news environment and take informed decisions. Better media literacy is likely to increase the public's resilience to mis- and disinformation. The EU considers media literacy to be important for active involvement in today's information society. It has launched several initiatives to raise awareness among the Member States of the importance of developing their own media literacy strategies. The European Parliament has underlined the importance of media literacy skills in several resolutions. The Audiovisual Media Services Directive requires Member States to take measures to develop media literacy skills and to report on their efforts every three years. The first set of these national reports revealed large differences across the EU, with some Member States having developed a national media literacy policy with clearly defined responsibilities, and others relying on more fragmented frameworks. In her 2024-2029 political guidelines, the President of the European Commission, Ursula von der Leyen, emphasised the need to 'focus on societal resilience and preparedness through increased digital and media literacy'. One of the key forthcoming initiatives, therefore, is the European democracy shield, which aims to make democratic societies less vulnerable to manipulation. The European Parliament has set up a special committee to address these challenges that require a multi-stakeholder, whole-of-society approach in order to foster critical thinking and media and information literacy. Source : © European Union, 2025 - EP

The development of the Schengen area is one of the major achievements of European integration. The removal of checks on persons at the Schengen states' internal borders greatly facilitates the exercise of the EU freedoms of movement, which brings significant social and economic benefits. The Schengen area has come under increased stress in the past decade, owing to multiple challenges relating to increased migration into the EU, threats to internal security and the COVID 19 pandemic. In response to these challenges, many Schengen states decided to reintroduce checks at some or all of their internal borders. Despite the prescribed temporary nature of such measures, several Schengen states have prolonged these checks for years on end. The number of Schengen states with checks at internal borders reached its peak (18 states) during the first wave of the pandemic. In May 2025, 11 Schengen states had checks at internal borders owing to serious threats related to irregular migration and/or internal security. The Schengen area has expanded gradually in the past three decades and is now composed of 29 countries. In January 2025, Bulgaria and Romania were the latest two countries to fully join the Schengen area, 18 years after their accession to the EU. Cyprus is also legally bound to join the Schengen area, but the evaluation procedure for its full accession is still ongoing. This briefing presents key recent figures and developments in the Schengen area, focusing on the Schengen states' measures to reintroduce checks at internal borders, and on the current situation regarding the completion of the Schengen area. This is an update of a briefing originally published in December 2023. Source : © European Union, 2025 - EP

The domestic support systems in agriculture are governed by the Agreement on Agriculture (AoA), which entered into force in 1995 and was negotiated during the Uruguay Round (1986-1994). The long-term goal of the AoA is to establish a fair and market-oriented agricultural trading system and to initiate a reform process through the negotiations of commitments on support and protection, and through the establishment of strengthened and more operationally effective rules and discipline. Agriculture is therefore special because the sector has its own agreement, whose provisions prevail. Source : © European Union, 2025 - EP

The European System of Financial Supervision is a system of EU agencies that aims to ensure consistent and coherent micro- and macro-prudential financial supervision in the EU. It includes the national supervisors, the three European supervisory authorities (EBA, ESMA and EIOPA) and the European Systemic Risk Board. There is a separate fact sheet (‘Financial Services Policy’) on the material rules that apply to the financial sector. After the ESFS had been created, the European Central Bank, as part of the Single Supervisory Mechanism, was appointed to directly supervise the largest banks within the Banking Union (2.6.5). For the material rules that apply to the financial sector, see the fact sheet on the EU financial services policy (2.6.13). Source : © European Union, 2025 - EP

In accordance with the subsidiarity principle, primary responsibility for vocational education and training policies lies with the Member States, with the European Union having only a supporting role. However, some challenges are common to all Member States – green and digital transitions, skills shortages and mismatches in the labour market – and thus call for joint responses, with countries working together and learning from each other. Source : © European Union, 2025 - EP

The common fisheries policy (CFP) has come a long way since it was first formulated in the Treaty of Rome. Initially linked to the common agricultural policy, it gradually developed a separate identity. The core area of the CFP – conservation and management of fish stocks – was launched in 1983. The policy was reformed in 1992, 2002 and 2013. The current framework, resulting from the 2013 reform, is aimed at ensuring that EU fisheries are sustainable – environmentally, economically and socially. Source : © European Union, 2025 - EP

The Commission is responsible for implementing the budget in cooperation with the Member States, subject to political scrutiny by the European Parliament. Source : © European Union, 2025 - EP

This briefing provides a summary of the recent economic developments in EU Member States and gives an overview of relevant economic projections forecasted by major EU and international institutions. Annex 1 includes the latest GDP data and forecasts for all EU Member States. Annex 2 provides the latest inflation data and developments. Source : © European Union, 2025 - EP

The Cohesion Fund was set up in 1994 and provides funding for environmental and trans-European network projects in the Member States whose gross national income per capita is less than 90% of the EU average. Source : © European Union, 2025 - EP

The field of direct taxation is not directly governed by European Union rules. Nevertheless, a number of directives and the case-law of the Court of Justice of the European Union (CJEU) establish harmonised standards for taxation of companies and private individuals. Moreover, actions have been taken to prevent tax evasion and double taxation. Source : © European Union, 2025 - EP

The setting up of the single aviation market in the late 1990s has profoundly transformed the air transport industry and has greatly contributed to the strong growth in air transport in Europe over the past 20 years. Source : © European Union, 2025 - EP

The European Union Solidarity Fund enables the EU to provide financial support to a Member State, a country involved in accession negotiations or a region in the event of a major natural disaster. Source : © European Union, 2025 - EP

European territorial cooperation (ETC) is one of cohesion policy’s goals and aims to solve problems across borders and to jointly develop the potential of diverse territories. Cooperation actions are supported by the European Regional Development Fund (ERDF) through three key components: cross-border cooperation, transnational cooperation and interregional cooperation. Source : © European Union, 2025 - EP