Andrew Hammond

Opinion | European Union summit is a showcase of a continent in flux

The underlying macro dynamic at the summit is a potentially historic power shift under way, as Germany ushers in new leadership and struggles to avoid recession

While there are forces of integration, developments in Hungary and Poland, and the upcoming French presidential election, could prove challenging for the bloc

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An EU Council employee places a sign near European Union national flags ahead of the EU leaders summit amid the coronavirus pandemic in Brussels, on July 16, 2020. Photo: Reuters

Andrew Hammond

Published: 1:30am, 16 Dec 2021Updated: 2:07am, 16 Dec 2021

December is traditionally a quiet month in international diplomacy, yet a lot is changing in Europe both politically and economically at the moment, as will be showcased at the European Union summit of 27 presidents and prime ministers this week.

Much is on the agenda, from tackling the surge in pandemic infections from the Omicron variant, to the significant rise in energy prices, and the Russian military build-up along the border with Ukraine.

The combined impact of these and other developments threatens a new downturn across the continent, with Germany, for instance, teetering on the brink of recession as supply bottlenecks and coronavirus cases hobble the economy. The strong recovery initially anticipated in 2022 is a mirage, according to projections published on Tuesday by the Ifo Institute for Economic Research.

Economics aside, the underlying macro dynamic at the summit is a potentially historic power shift under way in the club of continental leaders that could bring about significant change in the months to come.

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Exhibit one is the new pro-EU integration German government which took office last week and is already seeking to make the political weather on the continent.