EU Summit Stalls on Budget and Energy as Zelenskyy Seeks €70bn

Key points

• Zelenskyy requested an additional €70bn in military and financial aid for 2027, challenging the previous plan to use the €90bn loan for both 2026 and 2027.
• The Irish presidency’s proposal to cut €141bn from the EU budget was rejected, and Costa is expected to present a new compromise before a special summit on November 26.
• Italy and Spain agreed to extend temporary border controls by one week to align with Spain’s expiration date on October 22, marking a step toward resolving their border dispute.
• Leaders pushed for new trade defense instruments against China, including quotas and tariffs, to protect chemicals and machinery sectors amid a €360bn trade deficit.
• The Visegrád Group and Italy attempted to reopen the Emissions Trading System (ETS) debate, causing a 14-hour negotiation that frustrated Costa and other leaders.

Background

This summit follows previous EU efforts to manage migration through 'return hubs' and ongoing tensions over Ukraine’s financial needs. The current stalemate builds on earlier failures to agree on the multiannual financial framework, with leaders now facing pressure to resolve these issues before national elections in 2026.

How outlets are covering it

Euronews highlights the diplomatic relief for Zelenskyy and the concrete steps toward resolving the Italy-Spain border dispute, while Politico emphasizes Costa’s failure to manage the energy and budget negotiations, describing the summit as a 'mess' and 'insane chaos.' Euronews notes the broad support for Ukraine, whereas Politico focuses on the internal divisions and criticism of Costa’s leadership.

Why it matters

The unresolved budget and Ukraine funding issues could destabilize EU cohesion and impact support for Ukraine against Russia. The energy and migration disputes reflect deeper ideological divides within the EU, potentially affecting future policy and economic stability.

What to watch

Costa is expected to present a new budget compromise before the November 26 summit, and the Commission will work on new trade defense instruments against China. Italy and Spain will finalize replacement border measures by October 22, and further negotiations on Ukraine’s funding needs are likely to continue.