Key facts
- EU leaders will hold an additional summit on November 26 to finalize the bloc's next seven-year budget.
- European Council President António Costa aims for a final deal in December.
- French President Emmanuel Macron indicated he needs a mandate before the April 2027 presidential elections to sign the budget.
- Frugal countries, including Germany, Netherlands, Austria, Sweden, Denmark, and Finland, along with Belgium, are pushing for significant budget cuts.
- Spain and Italy are resisting further cuts to the proposed budget.
- Costa will explore EU-wide taxes on crypto firms, tech giants, and 6G spectrum sales to fund the budget.
EU leaders will reconvene on November 26 to continue negotiations on the bloc's next seven-year budget, with European Council President António Costa aiming for a final deal in December. The current summit, held on October 15, 2026, concluded without an agreement, pushing the timeline back.
Costa is pressing for a resolution by year-end to avoid delays in EU payments to farmers and researchers beyond January 1, 2028, when the new budget is set to take effect. He warned that a failure to agree in December could push a deal to May or even October 2027, due to a packed electoral calendar across Europe.
French President Emmanuel Macron's support for an end-of-year deadline, a shift from France's previous stance, puts added pressure on member states. However, some diplomats expressed skepticism about the timing, citing upcoming elections and concerns raised by figures like French far-right leader Marine Le Pen, who called a rushed agreement "a democratic scandal."
The "frugal" countries, including Germany, the Netherlands, Austria, Sweden, Denmark, and Finland, alongside Belgium, are advocating for significant budget cuts. German Chancellor Friedrich Merz acknowledged progress but stressed the need for further reductions, particularly in payouts to poorer regions rather than farmer subsidies. Conversely, Spain and Italy, represented by Prime Minister Pedro Sánchez and Prime Minister Giorgia Meloni respectively, are opposing any further cuts.
To bridge the divide, Costa plans to explore new funding mechanisms, including EU-wide taxes on crypto firms, online gambling, and tech giants, as well as a proposal for allocating future 6G mobile spectrum sales to the EU budget. However, securing agreement on these proposals is expected to be challenging.