EU Leaders Fail to Reach Deal on €1.62 Trillion Multi-Year Budget Framework

The European Council convened in Brussels on 15-16 October to negotiate the Union’s long-term financial framework for 2028-2034, but leaders departed without a final accord on the €1.62 trillion plan presented by Ireland's rotating presidency. The proposal trims the Commission’s earlier estimate by about €141 billion, yet it failed to bridge gaps between member states over the overall budget size and fund allocation. Germany and Sweden voiced concerns about rising national contributions, while countries reliant on agricultural subsidies and cohesion funding resisted cuts.

President António Costa will steer continued negotiations, with a special summit scheduled for late November, as the bloc seeks a political settlement before the end of 2026 to allow the 2027 legislative process and avoid funding interruptions from January 2028. The outcome will shape financing for agriculture, regional development, defence, research, energy infrastructure and aid to Ukraine.