The new seven-year budget of the EU is the focus of the European Council meeting, which begins today at 7 p.m. (Greek time) and will conclude tomorrow, Friday, June 19.
Specifically, the war in Ukraine, the situation in the Middle East, the EU’s new Multiannual Financial Framework for 2028–2034, as well as competitiveness and global economic challenges, are the topics on the European Council’s agenda.
The war in Ukraine remains high on the European Council’s agenda, which will begin its discussions with President, Volodymyr Zelenskyy, who is expected to be present. Military support for Kyiv and peace efforts to end the war will be at the center of the discussions. The President of the European Council António Costa, in his letter to the “27,” notes that “Ukraine has demonstrated renewed success on the battlefield, while Russia is failing to achieve its military and strategic objectives”. At the same time, he emphasizes that “Russia’s increasingly reckless and irresponsible behavior toward EU member states is unacceptable and is the antithesis of strength. Our two-pronged approach—supporting Ukraine and increasing pressure on Russia—is working.” At the same time, the EU continues to ramp up pressure on Russia through new sanctions, while procedures are underway to disburse the first tranche of the 90 billion euro financial package that will cover Ukraine’s needs for the years 2026 and 2027.
European leaders are also expected also to join Volodymyr Zelenskyy in celebrating a significant milestone in the European path of Ukraine and Moldova, as the two countries have moved forward with opening the first set of negotiation chapters for their accession to the EU. This development recognizes the determination, courage, and reform efforts of both countries, despite the particularly difficult circumstances they face, European sources emphasize.
Competitiveness of the European economy
The second key item on the Summit agenda is the competitiveness of the European economy and global economic challenges. EU leaders will review the progress made following the strategic guidelines agreed upon in recent months to strengthen competitiveness, with an emphasis on completing the Single Market and safeguarding prosperity and the European social model.
The economy will also dominate tonight’s working dinner among the leaders, where the focus will be on the external dimension of European competitiveness. Particular emphasis is expected to be placed on economic relations with China and on growing concerns about global macroeconomic imbalances and their impact on the European economy. At the same time, the operation of the Emissions Trading System (ETS) is also expected to be discussed. Although it is considered the EU’s primary tool for achieving climate goals and attracting clean investments, several member states point out that it places a significant burden on European industry at a time when businesses are facing low growth rates, high energy costs, and intensifying competition from China and the United States.
The new Multiannual Financial Framework (2028–2034)
Tomorrow, Friday, the Summit will begin at 11 a.m. Greek time with discussions on the new Multiannual Financial Framework (2028–2034). This will be the leaders’ second substantive exchange of views, following the informal summit in Cyprus, with the aim of laying the groundwork for a comprehensive agreement by the end of the year. In his invitation letter to European leaders, European Council President António Costa emphasizes that the discussion will focus on the key elements that can facilitate reaching an agreement, including progress on the issue of new EU own resources, which are considered crucial for financing Europe’s increased ambitions.
The Cypriot Presidency has already presented the first negotiating framework, proposing a 2% reduction or 32.8 billion euros in total spending compared to the European Commission’s proposal, which calls for a budget of 2 trillion euros over the seven-year period. Despite initial progress, the positions of the member states remain significantly divergent.
According to a European official, the Cypriot Presidency has now put the first concrete negotiating figures on the table, allowing leaders to move from discussing the budget’s structure to the difficult negotiation of the actual figures. As he noted, the goal of the discussions is not to immediately bridge all differences, but to pave the way toward a comprehensive agreement by the end of the year. The EU needs the new multiannual financial framework to be fully operational as of January 1, 2028, while the entire year of 2027 will be required to finalize the necessary legislation and prepare national administrations. “In today’s geopolitical environment, the possibility that the European Union could find itself without an approved long-term budget in 2028 is simply unthinkable,” the same official noted.
Developments in the Middle East
During Friday’s working lunch, the “27” will review the latest developments in the Middle East, with particular emphasis on the situation in Iran and its broader implications for regional stability and international energy markets. According to a European official, the agreement announced between Washington and Tehran represents a significant development, offering prospects for de-escalation of tensions in the region. As noted, the EU is ready to contribute to the implementation of the agreement, while the EU’s priority is to resolve outstanding issues through peaceful means and diplomacy. At the same time, the EU’s position remains firm that Iran must never acquire nuclear weapons and must end its destabilizing activities in the region, including its ballistic missile program.
Leaders will also examine the dramatic humanitarian situation in Gaza and developments in the West Bank, as well as the EU’s ongoing efforts to de-escalate the crisis and support the civilian population. Also on the agenda is Lebanon, with European leaders set to assess the situation in the country and ongoing European efforts to support the ceasefire, stability, and state institutions.
The 27 EU leaders are also expected to be briefed on progress made on defense and security issues, with the focus now shifting from planning to the implementation of the European defense readiness agenda recently adopted. According to a European official, significant progress has already been made both on the legislative front and in the development of defense capabilities, with leaders seeking to maintain this momentum ahead of the more in-depth discussion scheduled for October.
Finally, the Summit’s agenda includes migration, as well as the issue of illicit drugs—a topic which, as António Costa noted, is not typically addressed by the European Council, yet directly affects the daily lives of European citizens, as it is linked to public health and safety issues.
