Europe in March 2026: Key Events Across Countries

Brussels, 31 March 2026 – March 2026 was a month of intense pressure for Europe, dominated by the escalating US-Israeli war with Iran, a fresh energy price shock, stalled support for Ukraine, and growing internal divisions over climate policy. EU leaders met in Brussels on 19-20 March amid calls for de-escalation in the Middle East and renewed efforts to back Kyiv, while a major revolt erupted over the bloc’s Emissions Trading System (ETS).

European Union (Overall)

• European Council Summit (19-20 March): Leaders discussed the Iran conflict, urging the reopening of the Strait of Hormuz and a moratorium on strikes against energy and water infrastructure. They expressed solidarity with Ukraine but failed to overcome Hungary’s veto on a €90 billion loan package. Energy security and competitiveness topped the agenda amid surging oil and gas prices.
• Energy Crisis Response: EU energy ministers met on 30-31 March to coordinate measures against tightening supplies of diesel and jet fuel. The Commission is exploring emergency steps, including possible adjustments to gas storage targets.
• ETS Revolt: Ten countries warned that strict carbon rules pose an “existential risk” to industry and demanded extension of free allowances beyond 2034. A counter-group defended the ETS.
• Other Developments: Agreement reached to reform the EU Customs Union, with the new EU Customs Authority to be headquartered in Lille, France. €34.6 billion in cohesion funds reprogrammed for strategic priorities including defence and energy connectivity.

Ukraine & Russia

Russian forces continued pressure on Ukrainian positions, while Ukraine conducted drone strikes on Russian targets. EU leaders reaffirmed support for Kyiv four years into the full-scale invasion but struggled with internal divisions on financial aid. Hungary and Slovakia raised concerns over damage to the Russian Druzhba pipeline.

Key Country Developments

France

• Hosted growing “No Kings” anti-Trump protests against authoritarianism and “endless wars.”
• Continued involvement in E3 coordination on the Iran crisis.
• Benefited from the decision to locate the new EU Customs Authority in Lille.
• Received EIB financing for projects, including support for the DMS Group.

Germany

• Weak coalition government faced domestic challenges amid economic slowdown forecasts (around 0.9% GDP growth for 2026).
• Participated in E3 statements and discussions on defence and competitiveness.
• Energy-intensive industry felt the impact of rising gas prices.

United Kingdom

• Participated in E3 coordination on Middle East and Ukraine issues.
• Faced its own energy price pressures and domestic political debates.
• Anti-far-right protests and broader political fragility noted.

Italy

• Led criticism of the ETS, signing the letter calling strict carbon rules an “existential risk” to industry.
• Pushed for measures to protect energy-intensive sectors amid the energy shock.

Spain

• Strongly defended the ETS against calls for weakening or suspension.
• Announced significant national aid packages (over €5 billion) to cushion the impact of rising fuel and energy costs.
• Opposed certain aspects of US actions in the Iran conflict.

Hungary

• Continued to block the €90 billion EU loan to Ukraine, citing national interests and pipeline issues.
• Joined the group of ten countries demanding softer ETS rules.
• Faced domestic political pressures ahead of elections.

Central & Eastern Europe (Poland, Czech Republic, Slovakia, Croatia, Greece, Romania, Austria)

• Many joined the ETS criticism letter, warning of threats to competitiveness and households from high energy costs.
• Poland and others pushed for protection against further climate policy burdens.
• Energy vulnerabilities highlighted, especially for countries previously reliant on Russian supplies.

Other Countries

• Croatia: Secured EIB advisory support for Zagreb utilities to advance climate neutrality goals.
• Sweden & Others: Benefited from EIB financing for infrastructure projects.
• Broader EU: Discussions on defence readiness, migration, and a potential “two-speed” Europe to advance stalled initiatives.

Cross-Cutting Themes

• Energy Shock: Natural gas prices (TTF) surged over 70% since late February due to Hormuz disruptions and attacks on Gulf LNG facilities. Low storage levels heightened concerns for winter 2026-27.
• Economic Outlook: ECB projections revised euro area growth downward to around 0.9% for 2026 due to energy prices and uncertainty.
• Climate Policy Divide: Tension between protecting industry and maintaining green ambitions intensified.
• Political Fragility: Weak governments and protests in several capitals reflected public anxiety over costs and global instability.

March underscored Europe’s limited leverage in global crises and the urgent need for greater strategic autonomy in energy and defence. While unity on supporting Ukraine and calling for Middle East de-escalation was emphasised, practical progress remained hampered by national differences.