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At the European Council on 18 December 2025, the joint legislative priorities of the EU institutions for 2026 have been signed by the President of the European Parliament (Roberta Metsola), Danish Prime Minister (Mette Frederiksen, representing the Danish Presidency of the Council of the European Union), and the President of the European Commission (Ursula von der Leyen). The adopted priorities are serving as vital “political” indications for the EU member states’ legislative activity.
Background
As set out in the Inter-institutional Agreement on better law-making, the European Parliament, the Council, and the Commission have, since 2016, agreed on and signed a Joint Declaration to enhance cooperation on key legislative proposals. The Joint Declaration highlights the main Commission initiatives for which the European Parliament and the Council act as co-legislators.
In this context, the Joint Declaration on EU legislative priorities for 2026 underscores the necessity to act with unity, urgency, and ambition. It strongly advocates for a prompt agreement on the next Multi-annual Financial Framework and highlights the commitment of EU Institutions to ensure the EU’s defence readiness by 2030.
Additionally, the text addresses efforts to resolve bottlenecks that are hindering the Union’s competitiveness. The Declaration also emphasises the importance of tackling the cost of living, managing migration comprehensively, and reiterates the EU’s role as a leader in humanitarian assistance.
Finally, the three EU Institutions commit to prioritising a set of 10 key legislative initiatives during 2026, as outlined in the working document accompanying the Declaration.
Reference to: https://commission.europa.eu/strategy-and-policy/joint-legislative-priorities-eu-institutions-2026_en
The Joint Declaration
Following the results of the Conference on the Future of Europe, which was an inspiring and successful experiment in deliberative democracy, the EU responded to citizens’ expectations and the EU institutions will continue to ensure swift and effective follow-up to the recommendations made by the Conference, within their sphere of competence. Many Conference proposals have been reflected in the Commission work programs for 2023-2024.
More on the “EU future conference” in:
Conference on the Future of Europe “Report on the final outcome”. (2022). At: https://futureu.europa.eu/en/pages/reporting; https://wayback.archive-it.org/12090/20230417172132/https://futureu.europa.eu/en
The Joint Declaration prioritises legislative actions that focus on boosting the EU’s competitiveness and resilience, safeguarding citizens and businesses, while pursuing ambitious simplification goals and working towards swift agreement on the next Multi-annual Financial Framework (MFF). In this context, strong priority will be given to ensuring the MFF framework’s sustainability in a new geopolitical and economic situation towards introducing sufficient new own resources.
Utmost priority will be given to key policy objectives for a new era for European defence and security, to secure Europe’s sustainable prosperity, competitiveness and simplification, to strengthen the member states’ societies and the EU-wide social market economy model and quality of life, to ensure comprehensive approach to boarder management and migration, to protect the EU democracy, uphold Union’s values and to leverage European global influence and partnerships.
The Declaration highlights legislative proposals listed in the accompanying document, which the three Institutions commit to pay particular attention to and to prioritise in 2026.
Progress on these proposals should be regularly monitored throughout the year, both to provide updates on the state of play and to allow for early warning of any developments that risk any delays. Hence, the Presidents of the European Parliament, the Council of the European Union and the European Commission, will closely ensure the timely and effective implementation of this Joint Declaration: i.e. this approach would help the EU institutions collaborate more efficiently on key legislative proposals as co-legislators.
More on the Council’s work in:
https://ec.europa.eu/commission/presscorner/detail/da/statement_25_3134
EU’s official acknowledgements
= The EU-27 stands united with a shared vision for the Union’s future, notes Ursula von der Leyen, President of the European Commission. And adds, “we must deliver a new era of European security; and that starts with a just and lasting peace for Ukraine an strengthening our own defences. We must also build a more competitive, fairer Europe for our citizens and businesses”. And finally, she continues, “we are committed to reaching a swift agreement on the next long-term EU budget: because to turn our common vision into reality, we must have the means to deliver it”.
= “Europe moves when we all pull in the same direction”, notes Roberta Metsola, President of the European Parliament, and adds that the present Joint Declaration for 2026 “is more than just words on a paper, it is a sign of unity and our firm conviction to deliver on people’s expectations. For the first time, it sets out a clear and focused list of ten legislative priorities to make our Union stronger, safer, and more competitive; the Parliament is ready to get to work”.
Citations from: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_3114
Previous joint declarations on 2023 and 2024, can be seen at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32022C1223%2801%29
Experts’ predictions for the world in 2026
One of the prediction consensus notes that “if 2025 was a year of adjustment: i.e. markets recalibrating to higher rates, geopolitics reshuffling around a second Trump administration and tariffs, the AIs moving from hype to deployment, then 2026 is shaping up as a year of consolidation and consequence.
The consensus mood is cautiously optimistic but shot through with uncertainty. Morgan Stanley describes 2026 as “The Year of Risk Reboot,” a period with the market’s shifts from macro anxieties to micro fundamentals, creating fertile ground for risk assets. The policy backdrop is unusually supportive: fiscal stimulus, continued (if slower) monetary easing, and deregulation form what analysts call a “policy triumvirate” rarely seen outside of recessions.
Yet The Economist strikes a more sober tone, warning that 2026 will be defined by uncertainty as Trump’s reshaping of geopolitical norms continues to ripple worldwide. The old rules-based order is drifting further, and the line between war and peace grows ever more blurred through gray-zone provocations, cyber incursions, and an ambient rivalry between nations. In short: risk assets may thrive, but the world beneath them remains turbulent.
Digital projections
AI is moving beyond answering questions to actively collaborating with people and amplifying their expertise: 2026 will be the year of the agentic AI build-out. Deloitte predicts that by year-end 2026, as many as 75% of companies may be investing in agentic AI (autonomous systems that can plan, act, and adapt with limited human oversight). These AI agents are set to become “digital colleagues,” helping small teams punch above their weight. Microsoft envisions a future where a three-person marketing team can launch a global campaign in days, with AI handling data crunching and content generation while humans steer strategy.
After years of anticipation, productivity gains from AI are finally expected to materialize in measurable ways. Morgan Stanley points to AI-driven efficiency as one of six key drivers of their bullish earnings outlook. Software and internet companies are expected to see generative AI revenue grow more than 20-fold over the next three years.
Conveniently, AI also dominates the market story. The consensus is unmistakably bullish, though tempered by valuation concerns and awareness of concentration risks.
Source: https://www.visualcapitalist.com/prediction-consensus-what-the-experts-see-coming-in-2026/
As to the economic predictions, the trend is towards “soft landing, with caveats”; the IMF projected the global growth at 3.2% in 2025 and 3.1% in 2026—below the pre-pandemic average of 3.7% but not recessionary. Morgan Stanley expects similar numbers: 3.0% global growth in 2025, 3.2% in 2026 and 2027.
Advanced economies are expected to grow around 1.5-1.6%, while emerging markets hold above 4%. The consensus is a soft landing: growth moderates, inflation continues its gradual descent, and central banks ease policy—but not aggressively.