2028-2034 budget: EU leaders divided as some suggest a deal may not come until 2027

Brussels – There are significant differences over the total resources and differing views on the timeframe for reaching a political agreement: the EU’s next multiannual financial framework (MFF 2028–2034) is increasingly becoming a conundrum, with heads of state and government running a serious risk of turning it into a real headache. The European Council summit has gotten off to the worst possible start, with the prospect of a final agreement being delayed until 2027 now being raised.

The Swedish Prime Minister, Ulf Kristersson (EPP), put it plainly: “We are in no hurry,” he said upon his arrival in Brussels. Translated: “There is no need to reach an agreement by the end of the year.” These remarks, made before the start of proceedings, clash with the stated intentions of other parties, and those of the President of the European Council, António Costa, who would instead like to conclude the process in 2026 and, to achieve this, has an extraordinary summit scheduled for late November. 

The frugal states, however, are not backing down and are calling for further cuts. Kristersson puts it plainly: “The multiannual budget is too large and too expensive. Let’s say ‘no’ to Ireland’s proposal.” He is echoed by the Prime Minister of the Netherlands, Rob Jetten: “The Irish proposal isn’t good enough: we must reduce the size of the budget.”

Faced with the combative stance of the frugal countries, keen to avoid overspending, the Prime Minister of Estonia, Kristen Michal, explains the significance of the October meeting and those to come: “As far as the multiannual financial framework is concerned, it is likely that today and tomorrow everyone will stick to their positions.” At this summit, he insists, “I do not expect any compromise.” Everything is now in Costa’s hands. “Discussions from here on and a compromise before Christmas are part of the negotiation process.”

https://www.eunews.it/en/2026/06/18/the-multiannual-budget-its-not-just-about-divisions-within-the-eu-theres-also-the-spectre-of-the-2027-elections/

Almost everyone recognises that these will be “complex” negotiations. The heads of government of Luxembourg, Latvia and Ireland have reiterated this. However, fears are emerging from various quarters that it may not be possible to reach an agreement by the end of the year.  The heads of state and government of Lithuania and Bulgaria have also pointed out that reaching a deal may well be “difficult”, and that it may have to wait until 2027. Luxembourg’s Prime Minister, Luc Frieden, remains “confident” that an agreement will be reached by Christmas, but he also admits that “it would not be a tragedy if it were not to happen.”

The Irish Prime Minister, Micheál Martin, would like his country’s rotating presidency of the Council of the EU to be marked by a budget agreement, and is defending the original timetable: “We consider it essential to conclude the negotiations by the end of the year,” he stresses. Of course, “it is a challenging task, given that differences remain,” but there is still time to work “between now and Christmas.” Ireland is essentially expressing optimism, but the EU-27 appear divided and at loggerheads, far from reaching an agreement. 

The German Chancellor, Friedrich Merz, is attempting to offer a solution: “Our positions are still very far apart, but that does not mean we cannot reach solutions in November or December,” he begins. How can we reach the desired agreement by the end of 2026? By pressing ahead come what may. “For the European Council meeting in December, we would do well to pack a few more spare shirts than usual,” suggests the German Chancellor. On closer inspection, it is a possibility. And judging by the positions expressed, it is the only one.