Costa assumes responsibility for the negotiations on the EU's multiannual budget

Leaders of European Union member states have assigned President of the European Council Antonio Costa to take responsibility for negotiations over the multiannual budget, aiming to secure agreement in time to ensure funding reaches users from January 2028. The conclusions adopted on the first day of the summit stated that the European Council calls on its president to initiate talks with the goal of reaching a timely agreement. An agreement by the end of 2026 would allow for the adoption of legislative acts in 2027, necessary to ensure EU funding reaches beneficiaries without interruption starting January 2028. After lengthy discussions on the Multiannual Financial Framework for the period 2028–2034 based on Ireland’s presidency proposal, leaders failed to bring their positions closer. Member states remain divided into two camps: wealthier countries seeking a smaller budget and cohesion-friendly nations advocating for maintaining traditional policies, agriculture, and cohesion. Leaders will reconvene at an extraordinary summit at the end of November, with Costa expected to present his budget proposal beforehand. According to diplomatic sources, Costa will work with the European Commission on proposals for new taxes at the EU level to secure additional revenue, which could reduce direct payments from national budgets. Maintaining national contributions within reasonable limits while preserving ambition levels was emphasized during the discussion. Costa continues to believe achieving an agreement by December is absolutely essential. He considers new autonomous revenue streams crucial to reaching an agreement. Dissatisfaction was expressed regarding Ireland’s presidential proposal to significantly reduce funds for unforeseen situations. Ensuring sufficient flexibility in the next budget to adapt to future challenges and respond to unexpected circumstances was highlighted by a diplomatic source. In addition to the multiannual budget, leaders discussed issues related to the energy price crisis, economic competitiveness, and enlargement on the first day of the summit. On Friday, the second day, the summit will address further support for Ukraine and migration. Ireland's Prime Minister Michael Martin noted that some want a smaller budget, others a larger one, and still others seek to protect traditional programs. Ireland belongs to those wanting a modern Europe oriented outward, including its competitiveness strengthening program. Fiscally conservative countries such as Germany call on the Commission to radically reduce bureaucracy, focus more on competitiveness and defense, ensuring Europe remains capable and sovereign. German Chancellor Friedrich Merz said no EU member state can afford contributions proposed by the Commission. He stated that the common budget must be significantly reduced compared to the Commission’s initial proposal, expecting very difficult negotiations. Hungarian Prime Minister Peter Magyar also said the current proposal is unacceptable, warning that Hungary and other cohesion countries, such as Poland, would have to make greater contributions. Dutch Prime Minister Rob Jetten called on European leaders to increase financial, military, and other assistance to Ukraine, stating that some European countries continue to lag behind in supporting Kyiv. Swedish Prime Minister Ulf Kristersson deemed the budget proposal unacceptable, noting that Sweden’s net contribution would increase by 60 percent. He warned that proposed solutions would be rejected. Croatian Prime Minister Andrej Plenković said the first assessment of the new negotiating package presented by the Irish presidency indicates a lower overall volume of funds. However, what matters for Croatia is that it is favorable and within expectations regarding the total amount of resources available by 2034.