At a time when the international architecture is undergoing profound changes, the informal summit of the European Council in Cyprus (23–24 April) cannot be read as an ordinary diplomatic meeting. It represents a moment of strategic reflection on Europe’s very identity: what the European Union is today and what it aims to become in a world characterized by great power rivalry, economic fragmentation and prolonged uncertainty.

In this context, Europe is no longer simply facing isolated crises, but facing a systemic transformation. The Russian invasion of Ukraine, tensions in the Middle East, the US–China rivalry and domestic economic challenges have created a new reality where the boundaries between foreign policy, the economy and security have become almost invisible.

As the President of the European Council, Charles Michel, put it, “Europe must learn to speak the language of power without giving up its values”. This statement perfectly encapsulates the spirit of the summit: an attempt to move from a normative to a strategic power.

Ukraine: a test of cohesion and the limits of sustainability

Support for Ukraine remains the most visible element of European unity. Decisions on financial aid and new sanctions against Russia are not just instruments of pressure, but expressions of a long-term commitment that has now become part of the EU’s strategic identity.

However, behind this formal unity lie real tensions. European economies are facing high energy costs, inflation and pressure on public budgets. This creates a constant dilemma: to what extent can Ukraine be supported without undermining internal stability?

German Chancellor Olaf Scholz has stressed that “support for Ukraine is not a choice, but a necessity for European security”. But this necessity is becoming increasingly costly, turning Ukraine into a test of the EU’s own political and economic sustainability.

From dependence to autonomy, a shift in strategic thinking

One of the most important developments of the summit is the evolution of European strategic thinking. For decades, the continent’s security has been closely linked to NATO and the transatlantic alliance. Today, this approach is not being abandoned, but is being complemented by a new ambition: strategic autonomy. French President Emmanuel Macron has been among the strongest voices in this regard, arguing that “Europe must be able to defend itself, even when allies are not willing to do so”.

The discussions on the operationalization of the mutual assistance clause show that this is no longer an abstract idea. It is being translated into concrete plans: deeper military coordination, investment in the defense industry and the development of autonomous capabilities.

If security is the most visible dimension of the transformation, the economy remains the real foundation of European power. It is precisely here that the Cyprus summit takes on particular importance.

The “One Europe, One Market” initiative is not just a technical reform to improve the internal market. It represents a political and strategic project to increase the EU’s global weight.

The President of the European Commission, Ursula von der Leyen, has stressed that “the single market is our greatest geopolitical asset”. This is a significant change in the way Europe perceives the economy: no longer just as a means of prosperity, but as an instrument of power.

The main obstacle is internal fragmentation

Although the single market has existed for decades, it remains incomplete. Goods circulate freely, but services, energy and the digital sector continue to face numerous regulatory barriers.

This fragmentation has direct consequences: it limits economic growth, hinders innovation, and weakens the global competitiveness of European companies.

According to the former President of the European Central Bank, Mario Draghi, “Europe has a structural problem: it does not lack ideas, but scale”. This lack of scale is precisely what the initiative aims to address.

In a world where major economies operate on a continental scale, European fragmentation becomes a strategic disadvantage. A fully integrated market will increase productivity, reduce costs, and create “European champions” capable of competing globally.

But this process requires political compromise, as it directly affects the economic sovereignty of member states.

Energy between security and transition

The energy crisis has exposed the EU’s structural weaknesses. Dependence on imports and the lack of an integrated energy market make Europe vulnerable to external shocks.

The summit highlighted three priorities: integrating the energy market, reducing prices, and accelerating the green transition.

But these objectives are often in tension. In the short term, stability requires affordable energy; in the long term, climate policy requires major investments and structural transformation.

This is one of the main paradoxes of Europe: it must be both competitive and green.

Technological race, the risk of marginalization

In the era of artificial intelligence and advanced technologies, economic power is directly linked to innovative capacity. Here the EU faces a double challenge: competition from the US and China and internal fragmentation.

Building a unified digital market is essential. Without it, European companies remain confined to national markets and fail to develop on a global scale. As Ursula von der Leyen has warned, “the technological race is not only economic, but also geopolitical”. This makes digital policy a key component of European strategy.

The EU as a geopolitical actor

The Cyprus summit clearly showed that foreign and economic policy can no longer be treated separately. Relations with the Middle East, North Africa or Asia are directly linked to energy, migration and security.

This combination of dimensions requires a more coordinated and pragmatic approach. The EU cannot rely only on norms and traditional diplomacy; it must also use economic instruments as leverage.

One of the biggest challenges remains financing these ambitions. The discussions on the 2028–2034 multiannual financial framework highlight the tension between aspirations and economic reality.

Increased spending on defence, energy and industrial policies collides with an economic environment characterised by slow growth and high public debt. This forces the EU to make strategic choices: which priorities will be financed and to what extent it is prepared to deepen fiscal integration.

In essence, the Cyprus summit reflects a deeper transformation: the EU’s transition from an economic project to an integrated geopolitical project. Energy, the economy, technology and security are no longer separate domains. They are part of a single strategy, which aims to increase Europe’s autonomy and global influence. This transformation aims to overcome an old perception: that of Europe as an “economic giant and political dwarf”.

Conclusion: A decisive moment for Europe

The message that emerges from the summit is clear: integration is no longer an ideological choice, but a strategic necessity.

In a fragmented world, the European Union’s ability to unite economics with geopolitics will determine not only its global role but also the sustainability of the European project itself. The question that remains is not whether Europe should change, but whether it can do so with the speed and coherence that the times demand?

*Academician, Prof. Dr Anastas Angjeli is economy expert, former Minister and MP, founder and president of the Mediterranean University of Albania