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What does Belgium's capital has to do with this? Do you imply Brussels = European Union?
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Brussels = location of EU headquarters, and in common lingo Brussels thus means "People running the EU and deciding things on everyone's behalf."
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It is called a metonymy where you substitute a name that is associated to some other thing instead of mentionning that thing.

Some examples: Wall Street = NY Stock Exchange the White House = US president and his cabinet the Pentagon = US Dept of Defense Downing Street = UK prime minister

https://en.wikipedia.org/wiki/Metonymy Scotland Yard = Greater London Metropolitan Police Tehran = Government/officials of the islamic republic of Iran

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>It is called a metonymy

or called synecdoche (square/rectangle)

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As a person who lived for a long time in a political capital I was so frustrated with news articles titled like this.

"[City] decides [XYZ stupid thing]!!!"

No! We in the city didn't decide it - our responsibility is limited to our political representative. Everyone else voted in idiots and sent them here to decide idiot things!

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"Brussels" is often used to mean the entire blob of EU and related institutions.
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Exactly, it's just like people saying Washington to refer to the US government, or Beijing to refer to Chinese government.
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