Trump Slams a ‘Decaying’ Europe as EU Leaders Face a Defining Week

Key Points

• European leaders are set to meet in Brussels as multiple challenges pile up.
• President Donald Trump calls the European Union a “decaying group of nations.”
• The European Central Bank holds its final meeting of the year.
• ECB officials say interest rates are in a “good place” and are expected to stay on hold.

President Donald Trump has delivered a blunt verdict on Europe, calling the EU a “decaying” bloc led by “weak” leaders.

His comments, made in a recent Politico interview, come at an already difficult moment for the region. European leaders are juggling economic uncertainty, geopolitical tensions, and strained relations with Washington as the year winds down.

The coming week could prove decisive. A high-stakes EU leaders’ summit in Brussels and the European Central Bank’s final policy meeting of the year are set to dominate the agenda. Here’s what to watch.

Defrosting frozen assets

At the Brussels summit on Thursday — and potentially continuing into Friday — EU leaders are expected to focus on one of their biggest challenges: strengthening Europe’s military capabilities and securing funding to support Ukraine’s war effort.

At the center of the discussion is a plan to use billions of euros in frozen Russian assets to back a €210 billion ($246 billion) loan to Kyiv. European officials are also expected to revisit how Ukraine’s borders would be defended under any potential peace agreement.

Ukrainian President Volodymyr Zelenskyy has proposed holding a vote or referendum inside Ukraine on whether parts of the Donbas region could be ceded to Russia under a U.S.-backed peace plan.

Trump’s sharp criticism of Europe is adding another layer of tension to the process. NATO Secretary General Mark Rutte issued a stark warning this week, saying, “We [Europe] are Russia’s next target, and we are already in harm’s way.”

EU vs. U.S.: trade meets tech

Europe is also facing growing friction with the U.S. over Big Tech.

The Trump administration has repeatedly criticized the EU for its crackdown on American technology companies. U.S. Trade Representative Jamieson Greer said he was “disappointed” with how the EU has applied its Digital Services Act, even after both sides agreed in July to ensure “fair treatment” of U.S. digital companies as part of a broader trade deal.

Regulators in Europe have already fined X for breaching content moderation rules and launched an antitrust investigation into Google over how it uses content to train its AI models. Meta, meanwhile, has offered to make changes to Facebook and Instagram in an effort to avoid further probes and potential fines.

A rare bright spot: ECB policy

There is some better news on the economic front. The European Central Bank meets on Thursday for its final policy decision of the year.

In an interview with the Financial Times, ECB President Christine Lagarde said the central bank is likely to raise its growth forecasts again in December. The ECB had already lifted its annual GDP growth outlook to 1.2% in September.

That improving outlook has strengthened expectations that the ECB will keep interest rates unchanged at 2% for another month. Throughout December, several ECB officials have reinforced that message:

• Isabel Schnabel: Rates are unlikely to change soon
• François Villeroy de Galhau: No reason to raise rates in the near term
• Gediminas Šimkus: No need to adjust rates
• Joachim Nagel: Rates are currently in a good place

Events to watch this week

Monday: EU Foreign Affairs Council meeting
Tuesday: EU General Affairs Council meeting
Wednesday: EU inflation data, U.K. inflation data, German IFO index
Thursday: EU leaders summit, ECB meeting, Bank of England meeting, Riksbank meeting, Norges Bank meeting
Friday: EU leaders’ summit may continue

With political tensions rising and major decisions on the table, Europe is heading into one of its most consequential weeks of the year — under the sharp gaze of Washington.