EU budget talks enter critical phase; Council President visits countries to build consensus

European Council President Charles Michel has embarked on a crucial tour of EU member states, aiming to forge consensus on the bloc's next long-term budget. His visits, scheduled from August 25 to September 17, are designed to gauge national positions and assess the feasibility of reaching a final agreement by the end of the year.

The proposed budget, a record nearly 2 trillion euros, faces significant challenges. Member states have proposed cuts ranging from 2% to 20%, with some advocating for reductions in agricultural spending. A major point of contention is the potential for new, additional taxes to fund ambitious EU goals in areas like cutting-edge technology, defense, and climate action. The future of financial support for Ukraine, with a 90 billion euro loan package set to expire next year, is also a key consideration in the budget talks.

Michel's objective is to bridge the gaps between national stances and commitments, emphasizing the need for a balanced outcome by year-end. Failure to agree on the budget could jeopardize its timely implementation, as the 7-year financial framework needs to be in place before its scheduled start date of January 1, 2028. While national leaders are reportedly firm in defending their interests, they also appear willing to negotiate. The EU is preparing for a special meeting in late November to lay the groundwork for a decisive summit in December, where a final agreement will be sought.

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President Michel's main goal for this trip is to grasp the positions of the member states on the budget agreement and assess how a final agreement can be reached by December.