EU leaders met Thursday (15 October) for their first face-to-face talks on the 2028–2034 budget, killing the latest negotiation proposal put forward by Ireland.
Dublin, which holds the symbolic EU Council presidency, proposed cuts of up to €141bn from the long-term budget, about eight percent less than the commission proposal. But it failed to make anybody happy, for different reasons.
And now, EU Council president António Costa has been tasked to deliver a new compromise before EU leaders meet again on 26 November in Brussels, with the goal of striking a deal during the summit in December.
An EU official said Costa deemed the deal in December as “essential,” urging EU capitals “to assume their responsibility”.
For Denmark, for example, it is important to have more funds for defence, borders, illegal migration, and competitiveness. “It will probably be as difficult as it was last time or even more difficult,” said Danish prime minister Mette Frederiksen ahead of the meeting.
“We need unanimity in the Council. We are far from that unanimity,” also said German chancellor Friedrich Merz before meeting counterparts.
The EU is divided into two camps. The so-called Frugals (Germany, Austria, Denmark, Finland, the Netherlands, and Sweden) want “several hundred billion” more to be cut, mostly from agriculture and cohesion funds, while 17 EU member states (self-named as Friends of Cohesion) criticise the savings.
But time is of the essence to reach a deal this year, especially for French president Emmanuel Macron, who will be facing presidential elections in spring, and it is expected that a victory by far-right party National Rally leader Marine Le Pen would make it far harder to arrive at an EU deal.
Le Pen has pledged that, if she comes to power, she will halve France’s contribution to the EU budget.
And Macron reportedly said in the room with EU leaders that from January onwards, there will be no political room for reaching an agreement.
‘Easier to give up what you don’t yet have’
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