Portugal’s Prime Minister Luís Montenegro will join European Union leaders in Brussels on Thursday and Friday (October 15-16) for a high-level summit focused on rising energy prices, negotiations over the EU’s next long-term budget and continued support for Ukraine.
The two-day meeting brings together the heads of state and government of all 27 EU member states at a time of mounting concern over energy costs and their impact on households, businesses and European competitiveness.
According to senior EU officials, leaders are expected to call on the European Commission to propose additional measures to ease the pressure of rising fuel and energy prices.
Energy costs have become “one of the main political concerns” of European leaders, although officials acknowledge that there is “no miracle solution” to bring prices down.
Among the measures under consideration are improving the use of European refinery capacity, pooling energy demand and strengthening coordination of fuel supplies.
One senior EU official said there was now growing recognition that coordinated European action was necessary, rather than relying solely on individual member states.
Portugal demands additional €1 billion
Another major issue will be negotiations over the EU’s next seven-year budget, covering 2028 to 2034.
The latest proposal, presented by the Irish Presidency of the Council of the EU, envisages an 8% reduction compared with the European Commission’s original draft.
Under the proposal, Portugal would receive €35.1 billion in EU funding. However, Lisbon is demanding an additional €1 billion for the country’s two autonomous regions, Madeira and the Azores, which have special status as the EU’s outermost regions.
Portugal has warned that it could block an agreement unless the additional funding is secured.
“For Portugal, there will be no agreement unless there is funding for the outermost regions,” a Portuguese diplomatic source told Lusa.
The negotiations will now enter a more decisive phase, led by European Council President António Costa, Portugal’s former prime minister.
EU officials hope to reach a political agreement before the end of 2026, partly because elections scheduled in several member states next year could complicate negotiations.
“The deadline we have in mind is December,” a senior European official said.
The discussions will seek to balance traditional EU spending priorities, including regional development and agriculture, with growing demands for investment in defence, competitiveness, innovation and research.
Finding new sources of revenue for the European budget will also be a central challenge, particularly as several member states are pushing to reduce their national contributions.
Ukraine and relations with the US
The war in Ukraine will feature prominently on Friday, when Ukrainian President Volodymyr Zelensky is expected to join EU leaders in Brussels.
Discussions will focus on continued European support for Kyiv, including financial assistance beyond 2026, amid renewed tensions over US diplomatic efforts to end the conflict.
US President Donald Trump announced an energy truce between Russia and Ukraine last week, but Kyiv has since reported further Russian attacks on its energy infrastructure, raising questions about the agreement’s implementation.
European officials have also expressed concern over Trump’s announced agreement to purchase Russian diesel, describing the move as “regrettable” because it conflicts with EU efforts to reduce dependence on Russian energy and restrict Moscow’s revenues.
Despite these differences, EU officials have rejected suggestions that Europe is being sidelined in diplomatic negotiations and have stressed the importance of maintaining dialogue with Washington.
Leaders will also examine Europe’s response to hybrid threats attributed to Russia.
Migration and border security
Migration management will be another important item on the agenda, particularly following pressure on Europe’s external borders.
EU leaders are expected to discuss responses to migration emergencies, including the situation in the Spanish enclave of Ceuta, where a large influx of migrants during the summer exposed weaknesses in border management.
For Portugal, the summit comes at a particularly sensitive moment, with rising energy costs adding pressure to the domestic economy and the outcome of EU budget negotiations likely to influence investment and regional development over the next decade.
The government will be seeking to protect Portugal’s share of European funding while supporting measures aimed at easing energy costs for consumers and businesses across the bloc.