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Europe

EU budget talks stall as December deadline looms

António Costa faces an uphill battle to secure a long-term EU budget agreement after leaders dismissed Ireland’s proposal for a €141bn reduction. With the bloc fractured into opposing camps, the Council president must now bridge deep-seated disagreements before the December summit to avoid a total collapse of negotiations.

EU budget talks stall as December deadline looms

The atmosphere in Brussels turned tense Thursday as member states rejected Dublin’s attempt to trim the 2028–2034 budget by eight percent. The divide remains stark: a coalition of 'Frugal' nations, including Germany, Denmark, and the Netherlands, is pushing for deep cuts to agricultural and cohesion spending. Conversely, a group of 17 'Friends of Cohesion' states refuses to yield on funding for regional development.

Danish Prime Minister Mette Frederiksen warned that reaching consensus is proving more difficult than in previous cycles, while German Chancellor Friedrich Merz noted the current lack of unanimity makes a swift resolution unlikely. Behind the friction lies a race against the political calendar. French President Emmanuel Macron reportedly told his counterparts that the window for a deal closes in January, as domestic pressure mounts ahead of spring elections. The stakes are heightened by Marine Le Pen’s pledge to slash France's EU contributions should her party prevail, leaving leaders with a narrow, high-pressure path to reach an accord.

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