EU leaders called for urgent action to tackle soaring energy prices, reduce regulatory burdens and strengthen competitiveness, according to European Council summit conclusions released early Friday.

The council said the current energy situation required a "coordinated European response" involving targeted and temporary measures while taking into account individual member states' circumstances.

Leaders welcomed plans to extend temporary state aid for the most exposed industrial sectors, improve EU refinery efficiency and introduce voluntary measures to bundle energy demand. They also urged the European Commission to examine additional short-term measures to address soaring energy prices.

On competitiveness, the council called for decisive progress in removing remaining single market barriers, simplifying regulations and reducing administrative burdens, particularly for small and medium-sized enterprises.

Leaders urged progress in negotiations on key legislative proposals, including the Industrial Accelerator Act and the European grids package, with the aim of concluding talks by the end of 2026.

The council also stressed the need for a "well-functioning, transparent and predictable carbon market" while preserving emissions trading as a central instrument of the energy transition.

Regarding the EU's next long-term budget, leaders called for an agreement before the end of 2026 to ensure funding reaches beneficiaries without interruption in January 2028.

On enlargement, the council described expansion as a "geostrategic investment in peace, security, stability and prosperity," reaffirming that accession remains merit-based. It also welcomed ongoing work on Montenegro's accession treaty, with further progress dependent on reforms.