EU leaders are deeply divided over the bloc's next seven-year budget, worth €2 trillion. Cyprus proposed a 2% cut, but 'moderniser' countries deem it insufficient, with leaders expected to hold firm on demands.
Disagreements over the EU's long-term budget could delay crucial funding for key policy areas and hinder the bloc's ability to respond to future challenges.
European Union leaders are continuing discussions on the bloc's next seven-year budget, with significant disagreements persisting between member states. The European Commission has put forward a €2 trillion proposal for the long-term financial plan.
Cyprus, currently holding the rotating presidency, has put forward a compromise suggesting a 2% reduction to the original draft, which amounts to €32.8 billion. However, this proposal is deemed insufficient by a bloc of countries that refer to themselves as 'modernisers', who are pushing for more substantial cuts.
The debate is expected to see leaders reiterate their firm positions and demands, which remain deeply entrenched despite a shared objective to reach a final agreement by December at the latest. The summit's second day is also scheduled to address migration during breakfast, though expectations for significant progress on this issue are low.
Yesterday's discussions, initially intended to focus on 'macroeconomic concerns' such as the EU's trade deficit with China, were largely overshadowed by news that European Council President Antonio Costa had initiated communication with Russian President Vladimir Putin at the request of Ukrainian President Volodymyr Zelenskyy.