EU Proposes Record €2 Trillion Budget to Boost Security and Competitiveness, Reduce US-China Dependence
October 12, 2026
The European Council summit in Brussels will set political direction for the EU and negotiate solutions on energy prices, China trade tensions, and the next long-term budget for 2028-2034 amid uncertainties in transatlantic relations and Ukraine support.
EU leaders will discuss the seven-year budget (2028-2034) and plan a special summit in late November to build consensus among net contributors and net recipients.
Debates will cover broad competitiveness, with attention to rising energy prices and potential short-term measures such as delaying methane emissions rules for oil and gas imports.
Industry voices, including M&S Food, back simplifying paperwork to improve availability of fresh foods, highlighting reduced bureaucracy as a practical gain.
Zelenskyy warned of feeling betrayed by US support amid changing dynamics and potential loss of allied backing, while noting Starlink disruptions affecting Ukrainian military operations.
Burnham defended the Brexit referendum’s legitimacy while acknowledging scrutiny of possible Russian interference, asserting there was a clear indication Moscow interfered.
Burnham also addressed broader questions, including a controversial stance on Russian interference in elections, which he defended and then clarified.
A Franco-German letter proposes a faster, easier anti-coercion mechanism, with the European Commission rolling out diversification and solidarity measures to mitigate shocks from third countries.
The same Franco-German proposal aims to streamline the anti-coercion mechanism, a plan well received by other member states as the Commission pushes diversification and solidarity responses.
The Commission’s draft framework contemplates merging the Social and Cohesion Funds into national/regional partnership funds, with significant cuts to social spending and increased funding for defense and military initiatives.
Critics say Prime Minister Merz’s negotiation tactics are populist and unfair to vulnerable groups, urging a more dealmaking, compromise-oriented approach.
There are signals that a public push to reverse Brexit could be sought, indicating a possible shift in the UK-EU relationship stance.
Summary based on 31 sources

