EU leaders are negotiating the 2028–2034 budget as they race toward a deal by Christmas, aiming to avert disruptions from eurosceptic gains ahead of looming elections in France and other member states.

France’s fragile political climate, including the possible rise of the Rassemblement National, adds pressure on EU budget commitments and mirrors concerns voiced in Poland, Italy and Greece.

Leaders fear eurosceptic gains in upcoming elections in Italy, Poland, Greece, Finland and France could derail a 2027 agreement, potentially restarting talks after the French polls if no deal is reached.

Merz prioritizes spending on competitiveness and defense while signaling no extra funding needs for agrarian and cohesion policies.

Reporting on the summit includes contributions from Zoya Sheftalovich.

Costa has drawn support from leaders such as Belgian Prime Minister Bart De Wever, who defended his approach and contrasted it with Michel’s style.

Merz opposes using frozen Russian assets as leverage in peace talks, insisting Europe should hold the assets while pressing ahead with European priorities.

Zelensky met with NATO Secretary-General and Polish Prime Minister Donald Tusk to discuss energy security and Ukraine support, with Tusk underscoring strong solidarity and sanctions against Russia.

Germany insists that any new own resources be addressed as part of a single package covering spending, contributions, revenue sources and flexibility.

The summit’s agenda includes Ukraine, European defence and security, migration, and the Middle East, linking competitiveness to financing for research, industry and security priorities.

Energy costs and security are pressing, with rising gas and diesel prices complicating relief measures versus EU climate commitments.

Net contributor countries Germany, the Netherlands, Sweden and Austria push for a reduced budget and higher efficiency of contributions and returns.