Industry News

AYIA NAPA, Cyprus, April 23 (Xinhua) -- European Union (EU) leaders gathering in Cyprus on Thursday and Friday will discuss the economic and security fallout from Iran war, especially on soaring energy prices and mutual defense following a recent drone attack on the Mediterranean island.

Iranian drones targeted a British air base in Cyprus in early March following U.S. strikes on Iran. The incident has prompted Cyprus, a non-NATO EU member that currently holds the bloc's rotating presidency, and other member states to seek clearer operational guidelines for the EU's mutual defence clause.

Defense discussions are expected to focus on Article 42.7 of the EU treaty, which obliges member states to provide aid and assistance to any fellow EU country subjected to armed aggression.

"What we need and what we are going to discuss today is to give substance to Article 42.7 ... what is going to happen in case a member state decides to trigger the specific article. We need to have an operational plan," said Cypriot President Nikos Christodoulides, ahead of Thursday evening's geopolitics-focused discussions.

He said there is only one way forward for the EU, which is to work towards achieving European strategic autonomy, adding that all member states understand the necessity of that call.

In a letter of invitation to member states attending the meeting, European Council President Antonio Costa highlighted the difficult geopolitical environment. He said the summit will focus on how Europe can help ease tensions in the Middle East, support peace initiatives and safeguard freedom of navigation through the Strait of Hormuz.

With the conflict driving up fossil fuel prices sharply, Costa said the impact is already being felt by European citizens and businesses. Leaders are expected to discuss coordinated measures to cushion the energy shock across the bloc.

On Friday, discussions are supposed to shift to the EU's long-term budget, the Multiannual Financial Framework. The summit will conclude with leaders exchanging views with Middle Eastern counterparts on regional stability and de-escalation.