The Middle East crisis

The brutal and indiscriminate terrorist attacks by Hamas across Israel on 7 October 2023 have led to a drastic deterioration in the humanitarian situation of Palestinians in the Gaza Strip and have increased the risk of escalation in the region.

Emphasising that there is no justification for terror, the EU has condemned Hamas in the strongest possible terms for the terrorist attacks and has called for the release of all hostages without preconditions. While recognising Israel’s right to defend itself under international law, the EU has reiterated the importance of always ensuring the protection of all civilians in line with international humanitarian law.

Gravely concerned by the deteriorating humanitarian situation in the Gaza Strip, the EU has called for continued, rapid, safe and unhindered humanitarian access, and for aid to reach those in need through all necessary measures, including humanitarian corridors and pauses for humanitarian needs.

The EU is the largest humanitarian donor to the Palestinian people. Overall, since 2000, it has provided more than €1 billion to help meet their basic needs. Since October, the EU has quadrupled its emergency aid to Palestinians - open a new tab. and has been working with a large number of humanitarian partners on the ground.

The EU has been working constantly with regional and international partners to prevent the regional escalation of the conflict, including a deterioration in the situation in the West Bank. It remains committed to a lasting and sustainable peace based on the two-state solution and the relevant resolutions of the UN Security Council.

Security and defence: progress on the Strategic Compass

The EU wants to ensure the security of its residents and help make the world a more peaceful place. The Strategic Compass for Security and Defence - open a new tab. is a plan to strengthen the EU’s security and defence by 2030. It covers all the aspects of the Security and Defence Policy and is structured around four pillars: partner, act, invest and secure.

Cooperation with NATO (‘partner’, ‘act’)

Today’s security challenges are inherently transnational, demanding that no country tackle them alone. A collective and strategic approach is essential. Central to this global strategy is the EU’s long-standing partnership with NATO, which is a vital component of its security and defence efforts.

Russia’s war of aggression reaffirmed the shared values of the EU and NATO. Together, they have been standing in unwavering solidarity with Ukraine, and are coordinating their respective means of support - open a new tab.. The European Peace Facility (see Chapter 1) has become an integral part of the EU’s support for partners globally.

During the year, the EU also stepped up its cooperation with other bilateral, regional and multilateral partners, including the UN, the Organisation for Security and Cooperation in Europe, the African Union, the Association of South-East Asian Nations and many others. The first Schuman Security and Defence Forum - open a new tab. brought together EU and international partners to address common security challenges.

Building defence capabilities (‘invest’)

2023 saw the enactment of two key initiatives aimed at strengthening EU defence and industry. The Act in Support of Ammunition Production - open a new tab., backed by a €500 million budget, aims to increase the EU’s ammunition and missile production. Complementing this, the European Defence Industry Reinforcement through Common Procurement Act - open a new tab., with a budget of €300 million, will incentivise EU Member States, for the first time ever, to jointly purchase the most critical defence products from the EU defence industry.

The European Defence Fund - open a new tab. is a key supporter of defence research and development in the EU. It has provided over €3 billion for 60 collaborative projects across the Member States since 2021. In 2023 alone, the fund allocated €1.2 billion - open a new tab. to vital defence areas such as space situational awareness, countering hypersonic missiles and developing a European patrol corvette. The European Defence Fund supports innovation in the defence sector via the EU Defence Innovation Scheme - open a new tab., a €2 billion scheme to help smaller players and innovators in particular.

Under the military mobility envelope of the Connecting Europe Facility, €616 million was awarded in 2023 to support the transport of troops and equipment across the Trans-European Transport Network. The aim is to support investment in infrastructure that can be used for both civil and defence purposes.

New security strategies (‘secure’)

Recent crises and rising tensions have revealed weaknesses in the EU’s security. In response, in October, the Commission launched a comprehensive consultation to inform the future European Defence Industrial Strategy - open a new tab..

The warming planet is also a growing concern for the EU’s military operations. It is prompting a pivotal shift - open a new tab. in EU defence policy, with climate change now at the forefront of its security agenda.

In addition, in 2023, the EU adopted its first Space Strategy for Security and Defence - open a new tab.. This strategy focuses on, among other things, protecting the space assets of the EU and its Member States. Looking ahead, the EU space law is set for introduction in 2024, with the objective of improving the EU’s resilience and strength in space.

More than 80 % of global trade is transported by sea, and about two thirds of the world’s oil and gas are either extracted at or transported by sea. Almost all global data, including internet data, flow through undersea cables. The EU’s prosperity and security depend on safe and secure oceans. This is why the Commission and the European External Action Service adopted an updated EU Maritime Security Strategy and Action Plan in March. On the basis of these documents, the Council approved the revised EU Maritime Security Strategy and Action Plan - open a new tab. in October. The strategy is aligned with the Strategic Compass and will contribute to achieving its objectives.

Main objectives

Neighbourhood policy and enlargement negotiations

Western Balkans and Türkiye

The EU remains committed to integrating the Western Balkans into the Union. The 2023 enlargement package - open a new tab. provided a detailed assessment of the state of play and the progress made by the partners on their respective paths towards the EU. It mainly focused on the fundamental reforms required, including on the rule of law, public administration, the functioning of democratic institutions and economic criteria.

During the year, North Macedonia and Albania made smooth progress in the screening process – a primary step for accession negotiations. The Commission’s recommendation and the European Council’s decision to open accession negotiations with Bosnia and Herzegovina, once it meets the required membership criteria, recognise the country’s progress since it became a candidate in 2022. Montenegro’s and Serbia’s accession talks with the EU continued, supported by ongoing dialogues with the Commission at the political and technical levels. In April, the European Parliament officially approved visa liberalisation for Kosovo (this designation is without prejudice to positions on status and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence), which entered into force on 1 January 2024.

In 2023, the EU continued implementing the €30 billion Economic and Investment Plan - PDF file, open a new tab., targeting long-term recovery from the COVID-19 pandemic, the green and digital transitions, and regional cooperation and convergence with the EU. In addition, the EU disbursed - open a new tab. €450 million from its €1 billion energy support package, supporting Western Balkan countries in tackling energy crises and enhancing energy security. Furthermore, the Commission’s new Growth Plan for the Western Balkans - open a new tab. aims to give the region some perks of EU membership before countries officially join. It focuses on economic growth and socioeconomic convergence.

At the 2023 Berlin Process Summit - open a new tab., Western Balkan leaders reaffirmed their dedication to better integrating their regional economies through the Common Regional Market - open a new tab., as a step towards EU integration. They embraced plans for economic growth, including infrastructure investment and regional market expansion. The summit also spotlighted educational advancements, such as the new College of Europe campus in Tirana, and environmental initiatives like the Green Agenda. The gathering also underscored the importance of regional security, aiming to strengthen cooperation against organised crime and cybersecurity threats.

At the EU–Western Balkans Summit on 13 December in Brussels, Belgium, discussions centred on bringing the Western Balkans partners closer to the EU and advancing their gradual integration; economic development against the backdrop of Russia’s war of aggression against Ukraine; and strengthening regional security and resilience.

Presidential and parliamentary elections were held in Türkiye in May. In November, a report was adopted on current EU–Türkiye relations, outlining ways to improve cooperation. The EU continues to support refugees and communities in Türkiye by providing education, healthcare and border protection.

Georgia, Moldova and Ukraine

This year’s historic enlargement package was the first to include an assessment of these three countries’ ability to fulfil the obligations of EU membership. Over the past year, Georgia, Moldova and Ukraine have each demonstrated their commitment to joining the EU. Their path to accession will unfold through targeted reforms of judicial systems, a crackdown on organised crime and ongoing efforts to improve the political landscape, with a focus on de-oligarchisation and human rights. The Commission’s recommendation - open a new tab. – and the historic decision - open a new tab. by the European Council – to open accession negotiations with Moldova and Ukraine, and to grant candidate status to Georgia, acknowledged their significant efforts in aligning with EU standards.

Eastern Partnership

The Eastern Partnership’s post-2020 agenda has focused on resilience, recovery and reform, and has been implemented in line with the EU accession path of Georgia, Moldova and Ukraine.

The €17 billion Eastern Partnership Economic and Investment Plan is the EU’s main instrument for strengthening resilience in the region, linked to the Global Gateway strategy (see below). By the end of 2023, €8.6 billion of expected investment had been mobilised, with €5 billion for country-specific flagship projects.

The EU, its Member States and its partners will step up their efforts to implement the Eastern Partnership agenda for recovery, resilience and reform. This includes addressing the impact of Russia’s war of aggression against Ukraine on the whole region. Cooperation will focus on several areas, such as connectivity, transport, energy and the green and digital transitions, along with human rights, civil society, the rule of law and security matters. Despite not engaging with the Lukashenka regime, the EU has continued to directly support the Belarusian people, mobilising €100 million - open a new tab. between 2020 and 2023.

Southern Neighbourhood

In the Southern Neighbourhood, the Agenda for the Mediterranean regional cooperation plan and its financial strategy, the €30 billion Economic and Investment Plan, have made good progress in areas such as economic development, governance, digital transformation, energy and climate resilience, and migration.

The EU–Tunisia Memorandum of Understanding - open a new tab., concluded in July, addresses common challenges and future opportunities on the economy and trade, the green and energy transitions, people-to-people contacts, and migration and mobility.

The EU also continued to support people living through crises in Lebanon, Libya, Syria and Palestine (this designation shall not be construed as recognition of a State of Palestine and is without prejudice to the individual positions of the Member States on this issue). At the June Brussels Conference on Syria - open a new tab., the EU pledged €3.8 billion in grants for Syria and its neighbouring countries.

EU grants, together with blended grants and guarantees provided to partner independent fiscal institutions, will mobilise €23.8 billion in investment.

International partnerships and the Global Gateway

In 2023, the EU made significant progress in rolling out the Global Gateway - open a new tab. – its contribution to narrowing the global investment gap and supporting the green and digital transitions globally. Notably, the year saw almost 90 new flagship projects - open a new tab. rolled out in Africa, Latin America and the Caribbean, Asia and the Pacific, the Western Balkans, and the Eastern and Southern Neighbourhoods. These projects spanned various sectors, such as strategic transport routes, renewable energy, submarine cables, critical raw materials, teacher training and vaccine production.

For the first time in 8 years, the EU and the Community of Latin American and Caribbean States held a summit that endorsed the EU–Latin America and the Caribbean Global Gateway Investment Agenda - open a new tab.. The agenda is expected to mobilise more than €45 billion over the coming years. In 2023, the EU also concluded various bilateral strategic partnerships with partner countries in the region to further cooperate on energy and on critical raw materials. An EU–Latin America and the Caribbean Digital Alliance - open a new tab. was established for cooperation on digital and space issues. In addition, in response to the climate crisis, the EU’s flagship Euroclima - open a new tab. programme was expanded to the 33 Latin American and Caribbean countries.

The agenda is structured around key pillars:

Similarly, the EU further strengthened its relations with the Asia–Pacific region during the year. In 2022, it announced the leveraging of up to €10 billion in investment for Global Gateway projects with the member countries of the Association of South-East Asian Nations. As part of this, it launched an Earth-observation programme in 2023 to support climate adaptation, ensure food security and respond to disasters. Furthermore, the EU initiated new partnerships for sustainable energy and natural resource management. With the goal of improving sustainable connectivity between Europe and Central Asia, it mapped - open a new tab. transport links between the two regions and the resulting investment opportunities.

A new partnership emerged between the EU and the Organisation of African, Caribbean and Pacific States, an organisation that includes 79 nations. On 15 November, they signed the Samoa Agreement - open a new tab., replacing the Cotonou Agreement. The new text focuses on joint efforts against global challenges such as climate change, human rights and health issues. It is set to shape relations between the EU and the organisation for the next 20 years.

The EU is moving forward with the implementation of the €150 billion Africa–Europe Global Gateway Investment Package, including major new Team Europe initiatives (joint efforts between the EU and its Member States) in sectors such as health, digital technologies, green energy, education and transport.

The EU took a concrete step towards combating inequality in 2023 with the introduction of the Inequality Marker - open a new tab.. This tool helps to assess whether measures are reducing inequalities and meeting the needs of the bottom 40 % of the population.

The EU and its Member States together remain the leading provider of official development assistance worldwide, with €92.8 billion of aid provided in 2022 (the latest year for which data are available), representing 43 % of the total.

Humanitarian aid and civil protection

Humanitarian aid

Humanitarian aid saves lives, upholds human dignity and promotes global solidarity in crises and emergencies. The EU is collectively one of the largest donors of humanitarian aid in the world. With a budget of €2.4 billion in 2023 alone, it focuses not only on new emergencies but also on forgotten crises.

Due to conflict, economic shocks, extreme weather and the pandemic, food insecurity - open a new tab. is at a record high. Russia’s illegal invasion of Ukraine has further affected food, energy and fertiliser prices and disrupted supply chains. In 2023, more than €668 million was allocated for humanitarian food and nutrition assistance. Through this aid, the EU aims to ensure access to safe and nutritious food for the most hungry and vulnerable people in crises.

Over the past 12 years of the Syrian crisis - open a new tab., the EU and its Member States have provided extensive support totalling €30 billion to the Syrian people. This covers humanitarian, development, economic and stabilisation aid, with an additional €170 million allocated for humanitarian assistance in 2023.

In February 2023, a powerful magnitude-7.8 earthquake hit Syria and Türkiye. The earthquake was one of the strongest in the region in over a century. Yet more devastation was caused by subsequent earthquakes.

The EU reacted immediately: it sent 30 search and rescue teams to Türkiye, mobilised humanitarian assistance for both countries and convened the international donors’ conference - open a new tab. ‘Together for the People in Türkiye and Syria’ on 20 March. At the conference, the international community pledged €7 billion to support the humanitarian needs and reconstruction of the affected regions in Türkiye, and to provide humanitarian aid, along with early recovery and resilience support, to Syria. This included a €1.1 billion contribution from the EU budget, with €400 million secured in 2023 under the European Union Solidarity Fund.

A magnitude-6.8 earthquake struck Morocco in September. The EU quickly mobilised - open a new tab. €1 million in emergency funds and sent humanitarian and logistical experts, and stood ready to offer more support if needed.

With the global need for humanitarian aid clearly on the rise, the EU has stepped up its advocacy to broaden the global donor base and close the growing gap between funding and needs, which exceeded almost €40 billion for the first time in 2023. The topic was at the centre of the annual European Humanitarian Forum - open a new tab. in Brussels, Belgium, in March. With the aim of finding sustainable solutions to humanitarian needs, it brought together EU ministers for foreign affairs to discuss the use of development and climate funds to tackle the root causes of these needs and encouraged them to increase their level of commitment.

In addition to funding, the EU has also used its own capacities to complement the work of humanitarian partner organisations. Through the European Humanitarian Response Capacity - open a new tab., it provided direct logistical support throughout the year, particularly in the Middle East. This included the distribution of life-saving supplies from the EU’s own stocks and the organisation of EU Humanitarian Air Bridge operations to transport relief cargo for partner organisations.

The same was done in response to the conflict that broke out in Sudan in April by delivering life-saving supplies to people affected by the conflict in Sudan and refugees hosted in Chad. A parallel Humanitarian Air Bridge was undertaken following further conflict escalation in the eastern Democratic Republic of the Congo - open a new tab., and a series of flights continued to provide emergency aid to the people of Afghanistan, which is facing the world’s biggest humanitarian crisis.

In March 2023, the EU organised a solidarity conference with migrants and refugees from Venezuela, raising €815 million and highlighting this forgotten humanitarian crisis. Further pledging events were organised to support the people of Yemen and the crisis areas in the Horn of Africa and the Sahel.

Disaster response, prevention and preparedness

The EU Civil Protection Mechanism - open a new tab., established in October 2001, forms the backbone of cooperation and solidarity between the Member States and 10 other participating states in the event of human-made or natural disasters. When an emergency overwhelms the response capabilities of a country in Europe or beyond, it can request assistance through the mechanism.

With the inclusion of Moldova - open a new tab. and Ukraine - open a new tab. in 2023, the mechanism has grown to 37 members collectively strengthening prevention, preparedness and disaster response in Europe.

The EU plays a key role in coordinating and financing the collective disaster response within the EU and worldwide. In 2023, demand for assistance through the mechanism surged, reaching 66 activations in response to both natural and human-driven crises across Europe and beyond. These included the ongoing war in Ukraine, the massive earthquake in Syria and Türkiye, devastating forest fires in Canada and Greece and unprecedented floods in Italy, Libya and Slovenia.

The EU has further expanded its strategic rescEU reserves, created as a last resort to support major emergencies that overwhelm Member States. As part of this, the EU has built up its own shelter reserves, which can accommodate thousands of people in several countries. It has also started setting up a rescEU Emergency Medical Team - open a new tab., creating the first pan-European field hospital. Several Member States have received EU funding to build rescEU’s first chemical, biological, radiological and nuclear strategic reserve, along with an emergency energy reserve with generators and other equipment.

The EU supports governments, organisations and communities in anticipating, preparing for and responding to disasters. Communities are helped to achieve these aims by using early warning systems, sharing expertise, providing emergency response training and stockpiling relief items.

In this respect, the EU has renewed its commitment - open a new tab. to the UN Sendai Framework for Disaster Risk Reduction. It also supports Latin America and the Caribbean through a Memorandum of Understanding on Cooperation in Disaster Preparedness and Risk Management. As the risk landscape in Europe has worsened, the EU adopted five disaster resilience goals - open a new tab. in 2023. These are targets that guide communities across Europe to help them predict, prevent, prepare for and respond to future major disasters. They establish a link between specific disaster scenarios and response capacities, and aim to strengthen disaster resilience tangibly and efficiently.

Trade agreements

The EU works with countries around the world and international organisations to promote trade and economic prosperity, while ensuring technology helps to serve society and respects shared democratic values.

In June, the Commission and the High Representative for Foreign Affairs and Security Policy, Josep Borrell, introduced the European Economic Security Strategy - open a new tab. – a comprehensive approach for a stronger and more resilient EU economy. It will grow the EU’s industrial base, protect vital economic interests and promote collaboration with a wide range of non-EU countries to enhance global economic security.

In 2023, the EU made good progress on several free trade agreements. It signed and adopted - open a new tab. an agreement with New Zealand, concluded in 2022. The EU–Chile agreement was also signed, paving the way for formal adoption.

The EU concluded negotiations on and signed the Economic Partnership Agreement with Kenya - open a new tab., the most ambitious agreement the EU has negotiated with a developing country on sustainability. Work on the EU–Angola Sustainable Investment Facilitation Agreement also progressed, with the Commission proposing that the Council conclude and sign the agreement.

Negotiations on trade agreements with Australia, India and Indonesia continued, as did technical and legal work on the EU–Mercosur trade agreement. Negotiations with Thailand - open a new tab. were also relaunched.

Following the EU–Japan High-Level Economic Dialogue - open a new tab. in June and the EU–Japan Summit - open a new tab. in July, the two parties agreed to further collaboration under the EU–Japan Economic Partnership Agreement. This includes broadening talks about economic security and agreeing on digital trade principles.

With the United States, negotiations continued on the Global Arrangement on Sustainable Steel and Aluminium to address overcapacity in global markets and make the global steel trade more sustainable. To support these efforts, the United States and the EU agreed - open a new tab. to extend the suspension of US tariffs on certain quantities of EU steel and aluminium and of EU rebalancing tariffs on US goods until 31 December 2025 and 31 March 2025 respectively. Negotiations also began with the United States on a Critical Minerals Agreement, which would allow EU-produced electric vehicles and parts to benefit from certain US Inflation Reduction Act tax credits.

The EU and the United States continued developing their digital and trade relations within the framework of the EU–US Trade and Technology Council - open a new tab., which held its fourth Ministerial Meeting in May. Building on the success of the EU–US council, the EU and India also held the first Ministerial Meeting of the EU–India Trade and Technology Council - open a new tab. in May, following its launch - open a new tab. in February. During the meeting, both sides agreed to deepen their cooperation in three key areas: technology, clean energy and trade.

The Windsor Framework - PDF file, open a new tab. is an important milestone in EU–UK relations. It provides definitive solutions to the implementation challenges relating to the Protocol on Ireland/Northern Ireland (an integral part of the Withdrawal Agreement); reaffirms the full commitment from both the EU and the United Kingdom to the Good Friday (Belfast) Agreement; and eases trade between Northern Ireland and Great Britain and protects the EU Single Market. Both parties are committed to the full and timely implementation of all elements of the framework.

The Trade and Cooperation Agreement also progressed in 2023, allowing cooperation in trade, transport, energy and security, along with areas such as cybersecurity and financial services. The United Kingdom and the EU reached an agreement - open a new tab. on the former’s participation in Horizon Europe, the EU’s research and innovation programme, and Copernicus, the EU’s world-leading Earth-observation programme.

Thanks to the EU’s support for the Cyprus settlement process, the Green Line - open a new tab. trade between Turkish and Greek Cypriots soared to a record €16 million in 2023. This trade is building trust between the two communities and helping Cyprus’s economy. To further aid this growth, an EU-funded One-Stop Shop - open a new tab. opened in October, offering advice to local traders.

The EU launched several digital partnerships to strengthen its engagement with like-minded partners, including Canada and countries in the Indo-Pacific region, such as Singapore - open a new tab. and South Korea - open a new tab.. The aim is to increase cooperation to cultivate a safe, secure digital space and a resilient digital transformation. The strategic partnership between the EU and Japan - open a new tab. has also continued to grow, with both parties signing agreements to enhance cooperation on digital infrastructure, semiconductors and raw materials supply chains.

Another one of the EU’s goals is to enhance its ties with the world’s leading scientific communities. New Zealand’s entry - open a new tab. into Horizon Europe in 2023 broke new ground, as the EU’s first distant partner in this venture. Canada’s involvement - open a new tab. further extends this international scientific alliance.