EU Budget Standoff: German Chancellor Friedrich Merz is rallying EU budget-cutters ahead of talks, pushing for hundreds of billions of euros in cuts and tougher conditions tied to democratic standards as Council President António Costa tours capitals to broker a deal. Israel/West Bank Diplomacy: Denmark joined a broad international declaration backing EU and others’ calls to stop Israel’s E1 settlement expansion, warning it could derail a two-state solution and raise legal and reputational risks. Slovenia’s EU Split: Slovenia blocked a joint EU statement condemning new West Bank settlements, downgrading it to a High Representative line—an awkward sign of political fractures inside the bloc. Ukraine Support: EU leaders reiterated they will keep backing Ukraine “as much as necessary,” while discussions continue on how quickly new funding can flow. Climate & Food Security: A European Commission JRC bulletin warns heat and drought are hitting summer crops and fodder across western and central Europe, with irrigation limits worsening stress. EU-Canada Pivot: Mark Carney is set to address the European Parliament and attend the EU State of the Union, underscoring Canada’s push to deepen ties as US-Canada trade tensions escalate. Tech/Finance: Revolut begins rolling out a euro-backed stablecoin (EURR) to select EU markets, while Scalable Capital opens “agentic investing” via major AI assistants.