EU leaders make little progress on budget as elections loom over talks
A Brussels summit ended without a year-end target for the €2 trillion budget, and the gap in Ukraine's funding is still open.
EU leaders ended a two-day summit in Brussels last week with little progress on the bloc's next long-term budget, Politico and euronews reported. Member countries showed little urgency about settling it before the end of the year.
Politico reported that leaders failed to make headway on the €2 trillion budget. It said the summit's conclusions did not mention reaching consensus before year end, because countries resisted a push by European Council President António Costa for an end-2026 deadline. Euronews reported that the "frugal" net contributors and the "Friends of Cohesion" group held firm, and that leaders on both sides now openly say they feel no pressure to close a deal this year.
According to euronews, a negotiating proposal from the Irish presidency that would have cut €141bn from the overall budget is now dead. Costa will take over the talks and is due to present a new compromise.
Elections are what make the timing matter. Politico reported that Spain votes on 29 November and that France changes presidents in April. Citing four European diplomats, it said Emmanuel Macron admitted in a closed-door discussion that he would not have a political mandate to sign a budget deal in his final months in office. Cypriot President Nikos Christodoulides told Politico that the Spanish election means a political agreement by the end of the year will no longer be possible.
Costa rejected that view. "If it's about elections, we never could approve a new budget," he said, according to Politico.
The two outlets describe the calendar a little differently. Politico said leaders meet on 13 and 26 November and that summits are also scheduled for December. Euronews described 26 November as a special summit called by Costa, just days before the Spanish vote.
Ukraine's funding adds to the pressure. Politico, citing the IMF, reported that Ukraine faces a budget shortfall of $30 billion to $35 billion next year. Euronews reported that Ukrainian President Volodymyr Zelenskyy asked leaders for an additional €70bn in financial and military support next year. It said the request upends EU plans that assumed last year's €90bn loan would cover both 2026 and 2027. Leaders asked the Commission to propose how to meet Kyiv's needs.
Both outlets said that using immobilised Russian assets remains divisive. Politico reported that Belgium, which vetoed earlier efforts, still refuses to change its position.
Several questions remain open: whether Costa's compromise can win support, and how Ukraine's funding gap will be filled. Two EU diplomats told Politico that Spain is not expected to form a government until January, which could derail the budget talks. A senior EU official suggested to Politico that January could still offer a window to get the budget agreed.
