Key facts
- EU leaders aim for a preliminary deal on the next seven-year budget by October.
- The proposed budget is valued at €2 trillion.
- Ireland, assuming the EU presidency, is tasked with proposing new revenue streams.
- New revenue sources are to be proposed by October.
- Divisions exist between net contributors and beneficiaries within the EU.
- Potential new financing options include CO2 permit shares and digital taxes.
- Spanish Prime Minister Pedro Sánchez called for a more integrated and financially capable EU.
- Sánchez advocated for trade diversification and dialogue with other regions.
European Union leaders are aiming to reach a preliminary deal on the bloc's next seven-year budget, a €2 trillion package, by October. Deep divisions persist among member states regarding spending priorities and revenue sources for the 2028-2034 budget. Ireland, which will assume the EU presidency, has been tasked with proposing new revenue streams by the October deadline. Potential new financing options under consideration include shares of CO2 permit revenues and digital taxes. These proposals aim to address the divide between net contributing member states and those that are net beneficiaries of the EU budget. Spanish Prime Minister Pedro Sánchez, speaking at the EU summit, called for a more integrated and financially capable European Union. He advocated for trade diversification and open dialogue with other regions, presenting a contrast to the more cautious approach some member states are taking towards China. The ongoing negotiations highlight the complex balancing act the EU faces in aligning diverse national interests with collective financial goals.