New rules for the EU

Politics

Latvia’s governing United List won the country’s parliamentary election on 3 October, securing 41 of the 100 seats in the Saeima. Prime Minister Andris Kulbergs’ centrist alliance received 35.3% of the vote, its strongest result since Latvia regained independence. Although the party fell short of an absolute majority, the result strengthened Kulbergs’ position in coalition negotiations.

The Council of the EU formally adopted new rules on 1 October to accelerate the return of migrants who lack a legal right to remain in the bloc. The regulation introduces a European Return Order, stronger obligations to cooperate with authorities, and the possibility of establishing return hubs in non-EU countries. Mutual recognition of national return decisions will remain voluntary at first. The legislation marks a significant tightening of EU migration policy

The EU adopted its largest-ever single round of sanctions listings against Russia on 12 October, targeting almost 1,600 individuals and entities linked to Russia’s military-industrial complex. The measures cover 826 companies and 743 company executives involved in supplying components for weapons including missiles, drones and aircraft. They introduce asset freezes, restrictions on providing funds, and travel bans for listed individuals.

The EU opened two additional accession-negotiation clusters with each of Ukraine and Moldova on 13 October, advancing their membership processes. The new negotiations topics of the internal market and competitiveness and inclusive growth, covering 17 chapters for each candidate country. Both countries must continue aligning their laws and institutions with EU standards.

Economy

In the third quarter of 2026, seasonally adjusted GDP increased by 0.5% in the EU, compared with the previous quarter. Compared with the same quarter of the previous year, seasonally adjusted GDP increased by 1.5% in the EU in the third quarter of 2026, after +1.4% in the previous quarter.

The EU unemployment rate was 6.2% in September 2026, also stable compared with August 2026 and up from 6.0% in September 2025.

In August 2026, compared with July 2026, seasonally adjusted production in construction increased by 2.0% in the EU. In July 2026, production in construction fell by 0.1% in the EU.

At the end of the second quarter of 2026, the general government gross debt to GDP ratio in the EU increased from 82.5% at the end of the first quarter of 2026 to 82.9%. The highest ratios of government debt to GDP at the end of the second quarter of 2026 were recorded in Greece (140.8%) and Italy (139.9%), the lowest ratios were recorded in Estonia (26.1%) and Denmark (27.1%).

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