EU leaders met in Brussels to negotiate the bloc's next long-term budget, facing deep divisions among member states and pressure to reach a deal before upcoming elections in France.
European Union leaders convened in Brussels on Thursday to negotiate the bloc's next long-term budget, facing significant disagreements among member states. The 27-nation EU aims to reach an agreement by Christmas, driven by concerns that potential eurosceptic election wins across the bloc, particularly in France, could derail future dealmaking.
The negotiations are complicated by three distinct groups with conflicting priorities regarding the budget, which covers the period from 2028 to 2034. Ireland, holding the rotating EU presidency, presented a proposal that cuts approximately 140 billion euros from the total budget.
Germany leads a group known as the "frugals," which includes the Netherlands and Sweden. This group demands cuts of several hundred billion euros. "We are facing very, very difficult negotiations," German Chancellor Friedrich Merz told reporters upon arrival. He stated that leaders are "still very far apart" and suggested they "pack a few extra shirts" for a final summit in December. Swedish Prime Minister Ulf Kristersson described the draft as "far too big, far too expensive."
France opposes massive cuts, arguing that the continent requires a larger budget to address rising challenges. French President Emmanuel Macron did not speak to reporters, but a French official warned that there could be no agreement without "substantial" new bloc-wide taxes. These proposed taxes would include levies on large companies, environmental taxation, tobacco, digital services, crypto-assets, and online gambling. The European Parliament also supports these tax measures.
The third camp, known as the "Friends of Cohesion," demands more funding for agriculture and regional development. Spanish Prime Minister Pedro Sanchez stated, "The proposal is clearly insufficient," arguing that the funds offered were "far short" of what is needed to respond to the bloc's challenges.
The timeline for the budget is heavily influenced by the French presidential election scheduled for April and May. Marine Le Pen, the far-right candidate favoured in opinion polls, has called for slashing France's contribution to the EU budget. On the eve of the summit, Le Pen warned that adopting a budget before French voters head to the polls would be a "democratic scandal."
Although Le Pen is currently a candidate, a European diplomat noted that "she'll be in the room tomorrow" with the leaders, as her potential victory influences the talks. A second EU diplomat described the prospect of restarting negotiations in the summer if no deal is reached before the French vote as "an awful exercise."
The urgency to finalize the budget is underscored by elections looming in Italy, Poland, Greece, and Finland, in addition to France. However, signs of waning confidence in a year-end deal have emerged. The latest draft conclusions, dated Wednesday, refer only to a "timely agreement," removing the specific deadline of "by the end of the year" found in earlier versions.
European Council President Antonio Costa will lead the negotiations in the countdown to December. An extraordinary meeting has been added in late November to help secure an agreement.
The outcome of these negotiations will determine the EU's main priorities for the period from 2028 to 2034, including spending on agriculture, defence, competitiveness, and migration. The budget, valued at nearly two trillion euros, will also decide whether to fund migrant "return hubs" in Africa. Failure to reach a consensus before the French election risks prolonging the deadlock and potentially altering the EU's strategic direction under a new French administration.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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