The second day of the EU summit is underway. The debate will focus on the next long-term budget, with rival camps still miles apart.
The second day of the EU summit is underway, with a heavy focus on the bloc's next seven-year budget, which the European Commission has pencilled at €2 trillion.
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Cyprus, the country holding the rotating presidency, has proposed a "moderate" 2% cut, worth €32.8 billion, to the original draft. For the countries keen on preserving agriculture and cohesion funds, that is more than enough. But for the "frugals", now self-rebranded as "modernisers", a 2% reduction is nowhere near satisfactory.
The debate on Friday is expected to see leaders double down on their red lines, demands and conditions, all of which remain deeply entrenched, despite a shared goal of reaching a final deal in December at the very latest.
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EU budget needs to modernise to face new challenges, Dutch PM says
Dutch Prime Minister Rob Jetten stressed that the EU budget needs to reflect emerging priorities rather than remain stuck in traditional policies, ahead of a key discussion on Friday morning.
"If we want to build an economy for the next decade, then we can't do it with the budget from the 1990s. So it's very important that we focus on the priorities of security and greater competitiveness, and that the budget also supports those modernisations," he said.
"We all want a Europe that's more secure, and that's more competitive. Then we also need a budget that reflects that."
Macron arrives at high-stake summit after G7 success
France's President Emmanuel Macron has arrived on the second day of the European Council summit in Brussels. The high-level meeting is taking place in Brussels after the French leader successfully hosted a G7 summit in Évian-les-Bains earlier this week.
The G7, one of the last opportunities for Macron to shine on the global stage before he leaves office next year, was marked by a much-appreciated return to unity among Western leaders, as US President Donald Trump decided to play ball, especially on Ukraine.
In case you missed the G7, Euronews prepared a wrap-up on everything you need to know.
Six takeaways from the G7 summit in Évian
G7 leaders gathered in France for a high-stakes meeting over the last three days to discuss Ukraine, the Middle East and world challenges. Here is what you nee…
Leaders will not fight over who will represent the EU in talks with Russia, Jetten says
Europeans will stand together when the time comes to negotiate with Russia, Rob Jetten, Prime Minister of the Netherlands, told the press ahead of the European Council's second day of summit.
"Putin is not willing to negotiate at the moment," the Dutch PM said, adding that, until that is the case, Europe should give full support to Ukraine and exert maximum pressure on Russia.
"As soon as there's willingness to negotiate, obviously, the European Union also stands ready to negotiate on the security guarantees that we all need and the future relationship between the EU and Russia. We will not fight on, who will be the man or woman negotiating on behalf of the EU," he said.
'The Council is unable to decide on a possible Russian envoy', Czechia's PM says
Speaking about a potential EU envoy to Russia, Czech Prime Minister Andrej Babiš said there had been criticism that European Council President António Costa had already established diplomatic contacts.
However, he argued that it would be “nonsense” for only Ukrainian President Volodymyr Zelenskyy to be present at the table, given that “Europe pays for it all.”
"Meloni is a great leader who has rational ideas, and we have absolutely the same views, almost on everything," Babis said, hinting at the Italian PM as a potential mediator.
Babiš said the European Council is unable to decide even whether to reach agreement or who should be involved in agreeing it.
"So, a long debate, with no result," he said in reference to the evening negotiations among EU leaders.
Magyar told EU peers he doesn't want to be 'popular,' but to 'represent the Hungarian people'
Hungarian Prime Minister Péter Magyar has described his first European Council meeting, saying that in his opening remarks he urged EU leaders to embrace “honesty” and move beyond "political correctness and doublespeak."
"I emphasised that I did not want to be popular in the hall and in Brussels, but to represent the Hungarian people at all times. I respect that and expect the same from my country," Magyar wrote in a social media post, adding that his remarks were met with a round of applause.
The Prime Minister also said he backed further tightening of EU rules on illegal migration.
‘They call me the Emissions Trading System in the European Council’ Czechia’s PM says
Czech Republic's Prime Minister Andrej Babiš said EU leaders call him ‘ETS’, which stands for Emissions Trading System, the bloc’s carbon market that makes polluters pay for the CO2 emissions linked to their production.
His 'nickname' is linked to his outspokenness as he says the European Commission should scrap the ETS, or else European industries will lose even greater competitiveness.
At stake is the latest proposal from the EU executive to reduce free allowances for industries, which has been met with apprehension, even among ETS supporters.
"It is not at all that the Commission is willing to review the direction. That we have managed to move the permits to a certain time horizon, that we are actually fighting for the benchmarks to be rational, that the volume of permits will not be reduced, as it was originally planned,” Babis said, noting Germany has problems in the automotive industry.
The Commission will propose a revised ETS on 15 July.
Czech Republic's PM doubts the EU could strike a trade deal with China
Czech Republic's Prime Minister Andrej Babiš said that the EU’s dependence on China for strategic resources is “quite dramatic” as the EU leaders gather to discuss growing trade imbalances between Beijing and Washington vis-à-vis the European Union.
"I am quite skeptical that the European Union would be able to unite with China in the same way we have with Mercosur or with other European states, Babis said, recognizing the work that Trade Commissioner Maros Sefcovis has been doing in forging commercial agreements abroad.
Latvian PM critical of Costa as Russia whisperer, voices concerns over MFF
Latvian Prime Minister, Andris Kulbergs, has doubled down on his opposition to European Council President, António Costa, speaking on behalf of the European Union to the Russian President, Vladimir Putin.
“There have to be clear signs that Russia is ready for that. Today, there are no signs of that,” Kulbergs told reporters upon arrival at the second day of a European Council meeting in Brussels.
“There is no point in seeking diplomatic channels if there is no reason to hold talks.”
His comments came off the back of chatter that Costa has opened a channel of communication with Putin’s office at the behest of Ukrainian President Volodymyr Zelenskyy — a notion that has divided the bloc.
Meanwhile, Kulbergs said the upcoming Multi-Annual Financial Framework, also known as the long-term budget, must pay “special attention” to regions along Europe’s eastern flank. Many Baltic leaders have voiced their concern that certain communities are emptying out due to their geographical proximity to Russia’s war with Ukraine.
“We need schools, healthcare, and housing,” Kulbergs said.
“The problem is, we cannot allow people to leave the area because of geopolitics. That makes our borders weaker.”
The 'frugals' vs the 'friends of cohesion' - who is who?
Friday's second day of the European Council summit is set to be all about the EU's long-term budget, the Multiannual Financial Framework (MFF) in Brussels jargon. The negotiations are shaping up as a standoff between the so-called “frugal” countries and the “friends of cohesion.” But what do these groupings actually mean?
The frugals include most of the net contributors, namely: Germany, the Netherlands, Denmark, Sweden, Finland and Austria. These characteristics make them a relatively small but very assertive group.
This front is asking for a reduction in the overall EU budget and a refocusing away from traditional financial instruments, like cohesion policy and the common agricultural policy, toward emerging priorities such as economic competitiveness and defence. For this reason, they would rather be called the "modernisers."
By contrast, the "friends of cohesion" club is much more numerous, and it includes 17 countries: Bulgaria, Croatia, Cyprus, Estonia, Greece, Italy, Latvia, Lithuania, Malta, Poland, Portugal, the Czech Republic, Romania, Slovenia, Slovakia, Spain and Hungary.
These countries are broadly in favour of a more ambitious EU budget, and want to maintain funding for Europe's poorest regions and agriculture. However, the budget needs to be adopted unanimously, meaning all the member states involved need to greenlight it, and leaders are still very far from a consensus.
Italian PM Meloni meets Commission chief VDL, preps migration meeting
Italian Prime Minister Giorgia Meloni is meeting with European Commission President Ursula von der Leyen on the sidelines of the European Council summit in Brussels on Friday morning.
The meeting takes place ahead of the formal start of the summit’s second day, which is set to begin with a breakfast discussion on innovative approaches to migration. The event was organised jointly by Italy, Denmark and the Netherlands.
How does the EU’s seven-year budget come to fruition?
The 27 EU leaders have gathered in Brussels for what is expected to be a heated debate over the European Commission’s proposed €2 trillion long-term budget. Here is everything you need to know, at a glance.
- 16 July 2025: The EU executive proposes €2 trillion for the 2028—2034 Multi-Annual Financial Framework (MFF), aka the long-term budget.
- 26 May 2026: 16 countries sign a document calling for an increase in the MFF’s proposed agricultural and regional funding, describing themselves as the "Friends of Cohesion". They complain in the document about the reduction in funds for the Cohesion Policy, Common Agriculture Policy (CAP) and Common Fisheries Policy (CFP), which they describe as "the most visible EU policies for EU citizens".
- 11 June 2026: Cyprus, holding the rotating EU Council Presidency and aiming to speak on behalf of the 27 EU member states, proposes a 2% cut — worth €32.8bn — to the EU's draft €2 trillion budget proposal. This is bid to bridge the gap between "frugals" and cohesion-minded member states.
- Future: Any agreement on the budget will require unanimous support from all 27 member states, as well as the consent of the European Parliament.
EU leaders start arriving at the second day of high-stakes summit
European heads of state and government have begun arriving in Brussels for the second day of the European Council meeting.
So far, arrivals have included Czech Prime Minister Andrej Babiš, European Commission President Ursula von der Leyen, and Swedish Prime Minister Ulf Kristersson.
Italy's Giorgia Meloni, Belgium's Bart De Wever, Bulgaria's Rumen Radev and Slovenia's Janez Janša have also arrived.
The new Prime Minister of Hungary, Péter Magyar, at its debute in an EU leaders' meeting, has cancelled his doorstep statement before the work resumes.
EU leaders brace for heated discussion on bloc's next long-term budget
The EU's long-term budget is on the agenda as European leaders gather in Brussels for a second day of a high-stakes summit.
The discussion is expected to be a heated one. The so-called 'frugals,' or modernisers as they preferred to be called, are fuming over the recent budgetary proposal of the Cypriot presidency, which reduced the overall budget by only 2%, focusing the cuts on the funding for competitiveness and defence.
"This proposal goes in the trash bin," Dutch PM Rob Jetten said when arriving yesterday. The tone sums up the mood of the net contributors, who argue that the latest proposal disproportionately benefits the so-called “friends of cohesion” countries, including Cyprus.
EU leaders hold talks on common budget in battle for cash
EU governments will hold substantial negotiations on how to allocate €2 trillion of the European common budget over the next seven years, pitting frugals calli…
EUCO day two about to start
Good morning EU aficionados,
Day two of the European Council summit kicks off in Brussels today, with arrival statements by some of the 27 EU heads of state expected to start at around 8:35 CET.
On the agenda: leaders will discuss migration over breakfast. Then, there will be further talks throughout the day centred on the EU’s long-term budget, with a press conference scheduled for the afternoon.
This is officially what is on the cards. Yesterday was meant to focus on how the EU should address “macroeconomic concerns” — shorthand for the EU’s trade deficit with China — but much of the attention was diverted by the news that European Council President Antonio Costa opened up communication channels with Russian President Vladimir Putin at the behest of his Ukrainian counterpart, Volodymyr Zelenskyy.