Romania ended five months of political paralysis Tuesday with its parliament voting in Luca Niculescu as prime minister after three failed attempts to form a government — but the deal comes with a six-month deadline for the parties to strike a more lasting agreement.

The threat of snap elections, which would likely see the populist right-wing Alliance for the Union of Romanians (AUR) party surge, helped push the center-right National Liberal Party (PNL) and the center-left Social Democrats (PSD) to agree on a government led by independent Niculescu, a former journalist and diplomat who was nominated as prime minister by moderate President Nicușor Dan earlier this month. The socialists will join the cabinet, but the liberals will stay out.

Romania has the sixth-largest population in the EU and plays a critical role in NATO’s defense of southeastern Europe as home to a major military base and a U.S. missile shield site. The country has been plagued by political instability and a mushrooming budget deficit in recent years, fueling a surge in support for hard-right nationalist politics. 

The new deal keeping the government afloat expires in six months, and parties will need to renegotiate the pact with no agreement yet on what comes next.

During this period, the Social Democrats will try to pass an investment-focused 2027 budget by the end of November, steering Bucharest away from austerity, party leader Sorin Grindeanu told POLITICO Playbook Capitals in an interview.

“Romania needs an economic recovery plan, not austerity,” he said. “Our priorities are protecting purchasing power and supporting business, restarting public investment, and improving essential public services.” Grindeanu added that he aims to revise the 2026 budget by the end of October and to fast-track implementation of EU projects to unblock funds.

The Social Democrats in May teamed up with AUR to topple the coalition government led by centrists and centre-right liberals, as unpopular debt-cutting reforms drove Social Democrat voters toward the populist right. PNL and USR have refused to govern with the Social Democrats again.

The formation of the new government makes snap elections harder to trigger once the six-month deal expires, as Romania’s constitution requires two failed attempts to install a government before Parliament can be dissolved.

Grindeanu hopes to persuade his former coalition partners to reunite in six months, but with a different economic program. Fearing an uptick in support for the far right, he wants to avoid further cuts.

But the pivot away from austerity puts him at odds with the PNL, which has defended fiscal restraint. The PNL refused to sign a detailed coalition program, Grindeanu said, forcing the administration to cobble together support vote by vote over the next six months.

Grindeanu distinguished between parliamentary votes and lasting alliances, and said he won’t seek a pact with AUR, citing deep disagreements over Europe and national security. He said he rejected an offer from AUR to back a €300 million social spending package during negotiations over the 2026 budget, after the far-right party demanded PSD’s support on another, unspecified issue in return. Instead, he waited to find a compromise with PNL.

“Until I will stay in this position, PSD will not have any agreement with AUR,” he vowed.

LONDON — Kemi Badenoch warned Labour Prime Minister Andy Burnham on Tuesday not to repeat the economic mistakes of her former boss Liz Truss in his first budget next Wednesday.

The Tory leader said higher national debt, increased gilt yields and extra government spending are creating a gloomy economic picture — and demanded sharp spending cuts from the ruling Labour government next week.

“The lessons of the mini-budget are: if you don’t balance your budget, if you give away £150 billion in subsidizing people’s energy bills, but you don’t cut spending, then the markets will react,” Badenoch said, citing former Tory leader Truss’ ill-fated mini-budget in 2022, which triggered a sharp sell-off in U.K. government bonds and saw the value of the British pound fall.

Truss — Britain’s shortest-serving prime minister, who spent just 49 days in Downing Street — announced Tuesday she is publishing a new book setting out “what really happened” during the mini-budget in 2022, according to a press notice issued by her spokesperson.

“Bank Job: A short book on how the Bank of England broke the bond market and brought down the government” will be published later this month.

The ex-PM has blamed the mini-budget’s consequences on the Treasury, the Bank of England and the Office for Budget Responsibility watchdog.

Badenoch told a press conference in London she does not believe Labour is paying attention to the consequences of that Conservative budget by failing to reduce spending: “They are the ones who want to repeat the mistakes of four years ago, we are not going to be making that mistake again.”

“We need to live within our means,” she said. “We have to stop borrowing so much, but instead, Labour are taking out more loans to pay the interest on our existing loans.”

Questioned on why the public should trust her judgement on economic competence, Badenoch, who served as Truss’ international trade secretary, told POLITICO: “I am not Liz Truss and I think that the public can tell the difference.”

Badenoch said she only saw the mini-budget when it was presented and collective responsibility “doesn’t mean that you agree with all of the decisions that are made.”

“She needs to take responsibility for it, one way or another,” Badenoch said. “That is her issue.”

STRASBOURG — The far-right Alternative for Germany (AfD) wants to scrap the directly elected European Parliament, shrink the European Commission and let Berlin opt out of common EU policies. That’s according to the party’s policy program, which party leader Alice Weidel will present at the European Parliament on Wednesday.

The AfD’s push comes as far-right parties look to gain ground across Europe. The party’s recent victories in state elections in Saxony-Anhalt and Mecklenburg-Western Pomerania have given it fresh momentum.

Last week, Marine Le Pen was in Brussels to outline her plan for the EU if she becomes French president. She vowed to halve Paris’ contributions to the budget if she gets to power, and to turn the European Commission into a “secretariat” in the service of its member countries.

“I’m not fooled by what the European Commission wants to do. The European Commission wants to turn itself into a state; we do not. And so we will stand in its way,” Le Pen said. 

The AfD policy paper, obtained by Brussels Playbook, says the AfD would not seek to leave the EU or eurozone at first. Instead, it wants to renegotiate the EU treaties and cut the bloc’s powers, institutions and budget. Weidel will present her strategy at an event on Wednesday afternoon entitled “Our new deal for Europe.”

The party wants to replace direct European Parliament elections with delegates appointed by national parliaments, reduce the Commission’s role to purely administrative and transfer decision-making to national capitals. It also wants to replace the EU’s top court with an arbitration tribunal.

The plan calls for slashing and capping the EU budget, freezing staffing numbers and abolishing agencies. The AfD would use its veto power to scrap revenue from VAT and plastics taxes, and threaten to halt Berlin’s contributions to the common budget to force through the reforms it demands.

“If Brussels refuses the path of reform, this veto will be used to block future EU financing legislation and drastically reduce Germany’s contributions,” the AfD plan says.

The AfD also wants to give larger eurozone economies more voting power at the European Central Bank — giving Germany a say in monetary policy — and reject the digital euro.

Berlin should seek exemptions from EU rules on migration, taxation, social policy, defense and common borrowing, the party argues. If the EU’s green policies are not scrapped, and no substantial changes take place to industrial, agriculture, and financial policies, an opt out in these areas would be sought too.

The paper identifies 2029 — when the next European Parliament and German federal elections will take place — as the moment to start implementing the reforms.

“In 2029, something we have scarcely dared to hope for may become reality: a patriotic, right-wing majority in the European Parliament is coming within reach.”

If its reforms fail, the AfD says it would put Germany’s EU membership to a referendum.

The Arctic is becoming a geopolitical battleground — and the EU wants a bigger role.

The European Commission is unveiling a new strategy focused on security, as Russia builds up its military presence, China explores new shipping routes, and Donald Trump’s Greenland ambitions raise tensions.

Also on the show, hosts Zoya Sheftalovich and Nick Vinocur discuss signs of progress in the EU’s long-term budget negotiations: Emmanuel Macron and Friedrich Merz appear to be finding common ground, while Kaja Kallas warns that proposed cuts could undermine Europe’s global influence.

And finally, could that designer handbag on Vinted be stolen? France investigates suspicious listings following a weekend of riots and looting.

If you have a question or comment, don’t hesitate! Message us on our WhatsApp here or at +32 491 05 06 29.

Slashing the EU’s humanitarian aid budget risks wrecking the bloc’s dominance and influence in international discussions, warned the head of the world’s largest food aid organization.

As Europe’s leaders clash over just how much they’re prepared to fund the EU and its programs in the next seven-year budget, initial funding plans for global development have already been cut.

The latest compromise position presented by the Irish rotating presidency of the Council of the EU would carve €38 billion out of the Global Europe envelope — which funds development and external aid — shrinking it by roughly 17% to €177 billion.

The European Commission “has remained a predictable donor when others have cut,” Carl Skau, acting chief of the U.N. World Food Programme said. This has earned Europe “a lot of trust, a lot capital, a lot of leverage in the international system,” he added.

That influence has helped the EU shape WFP priorities, including commitments to gender equality, climate action and protecting vulnerable populations in its 2026-2029 Strategic Plan.

Now, Brussels risks throwing that advantage away, Skau warned.

It will be “unfortunate also to do away with that muscle that Europe benefits from,” he said, urging the EU to protect the “ambitious budget.” Compared with the billions being poured into defense, he argued, humanitarian aid amounts to “peanuts.”

Talks on squeezing the EU’s contribution land as other international powers have also cut their global development budgets.

The World Food Programme’s global funding has plunged by 40% over the past two years, according to its official records. Its largest donor, the United States, halved its contributions in 2025 under President Donald Trump compared with the previous year. Germany, France, and the United Kingdom also tightened the purse strings.

Record need for aid

Funding cuts to the organization come when the need for its programs has never been higher. According to WFP projections, as many as 363 million people could face acute food insecurity this year — nearly 90% more than in 2021.

“We see the consequences of the cuts that we’re now going through. They are human, because we are cutting [food programs for] women and children, who are likely to die in South Sudan, in Afghanistan, in Somalia, off our support because of these deep funding cuts we’ve been going through,” said Skau.

The world’s largest food aid agency is now running dangerously short of cash and has to make “impossible choices,” such as “choosing between the starving,” Skau said. Moreover, wars, extreme weather, the looming threat of El Niño and disruptions to global trade routes are deepening hunger crises worldwide.

Some officials previously warned that cuts to development aid risk fueling more migration into Europe, something Brussels has been trying to curb.

 “I would not put that as my main argument, but there is a clear linkage,” said Skau. “And if that’s what it takes to get the resources needed to save lives in South Sudan, you know, fair enough,” he added.

Skau is serving as WFP’s interim chief following Cindy McCain’s departure. He is set to hand over to Luke Lindberg at the end of October.

Un week-end marqué par des scènes de pillage et des heurts dans toute la France. Un chef de l’Etat qui s’exprime à la télévision sans convaincre son propre camp. Des candidats qui dénoncent en chœur des failles sécuritaires. Des forces de l’ordre dépassées. Les violences des 17 et 18 octobre sont-elles le tournant de la présidentielle et comment Emmanuel Macron, parti depuis au Moyen-Orient, peut-il reprendre la main ? Marcelo en discute avec Elisa. Des questions? Des commentaires? Ecrivez-nous sur Whatsapp au +32 49 07 69 41

**Un message de GSK : Prévenir, soigner, innover : GSK appelle à investir dans la santé des Français pour accélérer l’accès aux innovations et atteindre un objectif : zéro perte de chance pour les patients, en renforçant la recherche et les investissements industriels en France.**

The EU is already struggling with how to get its largest-ever budget agreed, plug a massive financial hole for Ukraine and navigate geopolitical pressure from the U.S. and China. Now, it also faces being paralyzed by domestic political strife in the countries that collectively make up around 60% of its GDP and population.

“Everybody used to understand that we need to finish … a political agreement by the end of the year,” Cypriot President Nikos Christodoulides told POLITICO in an interview on the sidelines of last week’s European Council, referring to the bloc’s fraught budget negotiations.

But the Spanish election means that will no longer be possible, he said. And next year, “it’s going to be France, Italy” and others going to the polls, Christodoulides added, predicting even more complications for the bloc.

The EU is facing an unprecedented dilemma: Its four biggest economies are all heading into elections or political upheaval, potentially hamstringing the bloc’s ability to get anything done.

Spain will go to the polls next month, with the center right and far right on track to take power. France is changing presidents in April, with polls favoring far-right figurehead Marine Le Pen. The Alternative for Germany is ascendant, putting Friedrich Merz’s chancellorship in doubt. And Italian Prime Minister Giorgia Meloni’s unusually long-serving government is also heading to an election in 2027.

The consequences are already becoming clear.

The bloc’s latest summit offered an early taste of what lies ahead: After two days of talks, leaders failed to make headway on the €2 trillion budget and instead became embroiled in an unexpectedly bitter row on energy policy. The summit’s conclusions notably omitted any mention of finding consensus on the budget before the end of the year, with member countries resisting a push by European Council President Antonio Costa for an end-2026 deadline, although there are summits scheduled for November and December.

If those meetings fail to produce a deal, then the already fractious talks will spill over into 2027, when electoral battles are likely to loom even larger over negotiations — and governments may be increasingly reluctant to make the compromises needed to reach agreement.

Triple assault

The paralysis Brussels fears as Europe’s election cycle gathers pace is already beginning to take hold, with last week’s summit exposing how difficult it is becoming to forge the compromises the bloc needs.

Rather than strike any big deals (a Franco-German accord on cars was the one exception), the leaders used the gathering to dig in on entrenched positions and seek tactical advantages over rival camps.

The pessimism was palpable, according to six diplomats and officials POLITICO spoke to, with several warning the EU faces sharp headwinds in the coming months. All were granted anonymity to speak freely.

“Next year, it will be worse,” said one senior EU diplomat.

“It’s true, because of this calendar for the elections … in the next year it’ll be much more difficult in the member states and inside the [European] Parliament,” said Carla Tavares, a senior MEP with the Socialists and Democrats and co-lead on budget negotiations.

The bloc’s internal malaise could hardly come at a worse time.

From U.S. President Donald Trump’s undermining of the transatlantic alliance to an ever-widening trade imbalance with China, the EU is facing mounting geopolitical and economic pressures on multiple fronts.

“They seek our division. They want our division,” Belgian Prime Minister Bart De Wever told reporters at a late-night briefing during the summit, not mentioning names but referring to countries to the east and west of Brussels. “And they have, of course, points where they can hurt us.”

Former Lithuanian Foreign Minister Gabrielius Landsbergis, now a visiting fellow at Stanford University, was less circumspect. “Now we are under assault from three sides: from the U.S., Russia and China,” he said.

Washington is questioning the old alliances that have underpinned European security for generations. Moscow is waging a shadow war across Europe, from cyberattacks and sabotage to an attempted drone attack at Leipzig airport that Berlin blamed on the Kremlin. Beijing is tightening its grip on critical supply chains and flooding European markets with cheap exports.

Then there’s the Ukraine problem. The country is facing a budget shortfall of $30 billion to $35 billion next year, according to the IMF, with Russia battering its energy infrastructure ahead of a brutal winter. That’s despite the €90 billion the EU already agreed to stump up last year.

Landsbergis said the coming months are looking “extremely dire” for Kyiv. “Everything falls on European shoulders,” he said.

Ukrainian President Volodymyr Zelenskyy sounded a grim note at last week’s summit, telling reporters that if Ukraine falls, 20 million Ukrainians will flood into the EU. “Russia is killing us,” he said. “They don’t want to stop.”

One solution to Ukraine’s funding woes could be the €200 billion in Russian assets that have been immobilized indefinitely in Brussels-based financial depository Euroclear. But there is no sign of the EU finding common ground on that front either, with Belgium, which vetoed previous efforts to use the assets to help Ukraine, still refusing to budge.

“Nothing has changed,” Swedish Prime Minister Ulf Kristersson said as he exited last week’s summit early.

Other potential solutions, such as issuing more joint debt, will require messy compromises — just as Brussels finds itself with even less room to maneuver.

Who you gonna call?

The EU’s problems go beyond its budget or individual policy files. With the political futures of several of Europe’s most powerful leaders in question, Brussels risks losing the stable alliances and long-serving national heavyweights needed to broker compromises.

“We now have Europe with no obvious leader,” another EU diplomat argued. Commission President Ursula “von der Leyen is powerful. But we do not have a Merkel or Mitterrand.”

French President Emmanuel Macron cannot constitutionally serve a third consecutive term and will have to find new digs in Paris after leaving the Élysée Palace in April. During a closed-door discussion at last week’s summit, Macron admitted he wouldn’t have a political mandate to sign a deal on the budget in his final months in power, four European diplomats said.

Spanish Prime Minister Pedro Sanchez is on track for defeat after eight years in power, according to polls. Spaniards will vote on Nov. 29, meaning Sanchez will be in full election mode during EU leaders’ meetings on Nov. 13 and Nov. 26.

Costa, who has stressed the need to reach an agreement on the EU’s budget by the end of 2026 to make sure it’s ready to go by 2028, waved off fears that the bloc’s next spate of elections could get in the way.

“We are living in 27 democracies,” he said on Friday. “More or less every month we have one election. If it’s about elections, we never could approve a new budget.” 

Regardless of the result, Madrid is not expected to form a government until January, which could derail the budget talks, according to two EU diplomats.

It’s anyone’s guess how long German Chancellor Merz has left in office. While the next federal election is not scheduled until 2029, the AfD’s growing strength and his own nosediving popularity complicate how much Merz might be willing to compromise.

Italy, too, is set for elections in October 2027. Another EU diplomat said they did not expect Meloni to wait that long, arguing she could call a vote much earlier.

There could be a sweet spot in January to get the budget over the line, a senior EU official suggested. It may be the last chance to strike a deal before Europe’s political upheaval makes compromise even harder to come by.

So far, the EU’s leaders have simply been “too slow,” said Siegfried Mureșan, the European People’s Party’s co-lead on the budget. “Time is running out.”

Nicholas Vinocur contributed reporting.

This was supposed to be an EU summit about the EU’s long-term budget. But things are never easy for EU leaders, and world events have a nasty habit of making their way onto the itinerary.

That meant this European Council had a lot more on the agenda than the last handful of summits, at least: Energy, migration, enlargement, Ukraine, and more besides were covered — and very little, if anything, was decided.

Have FOMO because you weren’t there? Don’t worry, we’ve got you covered. Here’s POLITICO’s rapid roundup of what we learned at the European Council.

1) Energy stole the show right out of the gate

The summit’s first major clash came Thursday morning, with EU leaders split over whether to delay ETS2, the bloc’s second phase of carbon pricing, to address high energy prices, triggering a three-hour-long standoff.

Italy and Greece joined the Visegrád Four — Czechia, Hungary, Poland and Slovakia — in calling for a delay, a push rejected by the majority of countries.

The debate dragged on, delaying lunch (spare a thought for our hungry leaders!) and leading to the cancellation of a press conference on Thursday night.

2) Budget negotiations are a marathon…

Negotiations on the bloc’s next long-term budget were expected to be one of the summit’s most contentious topics. But they were a nothingburger, with most leaders repeating positions they have held for months. The summit brought them no closer to a breakthrough.

Many countries, of course, want a smaller budget, with Swedish Prime Minister Ulf Kristersson telling reporters that his country is “not an ATM for the EU.”

Belgian Prime Minister Bart De Wever, meanwhile, said he had no choice but to be frugal at the European level, arguing he is used to tightening his belt at home because his wife is Dutch. Think of Bart next time your Dutch friends ask you to pay them back for that coffee.

3) … and a sprint

European Council President António Costa is still aiming to get a budget deal before the end of the year, according to two EU officials. He announced that leaders will hold a special summit at the end of November to try and make progress (and there’s a December summit too). But that timing leaves them up against the clock to reach a deal by year’s end.

See you all back here on Nov. 26!

4) EU leaders may need to bring extra luggage next time

If leaders do hope to agree on the EU’s long-term budget this year, they should prepare for long negotiations in November and December.

German Chancellor Friedrich Merz suggested the pre-Christmas summit could last longer than the scheduled two days. “For the December summit, we should pack a few more shirts than usual,” he said. Gulp!

5) Your next holiday to Cyprus might be a little easier

Cypriot President Nikos Christodoulides told reporters he hopes EU leaders will discuss his country’s bid to join the Schengen travel zone at the December summit.

“All technical preparations have already been completed, and we hope that the matter will be discussed by the relevant council in December so that the final political decisions can be made,” he said.

6) Rose-colored glasses have come off when it comes to Costa

European Council President António Costa drew the ire of some leaders over his handling of negotiations to curb high energy prices, which had become a “mess,” three EU diplomats told POLITICO, with another two diplomats saying that leaders were fuming at Costa for allowing talks to go off the rails.

7) Drink (a little) less beer to help Ukraine

Ahead of the summit, Latvian Prime Minister Andris Kulbergs told reporters that supporting Ukraine costs each European the equivalent of one beer a year.

“That one beer is just a cost [for EU citizens]. There, it’s a cost of life. We drink less, their lives are saved,” he said. “Simple as that.”

He didn’t say whether he meant a beer bought in Stockholm or Prague. As anyone in Belgium knows, not all beers are created equal — or cost the same.

8) The EU Parliament wants you to know it matters too

The European Parliament’s two lead negotiators on the EU budget made the rounds of the press room to make sure journalists heard their views. Siegfried Mureșan (of the European People’s Party) and Carla Tavares (Socialists and Democrats) both stressed that the Parliament’s position is important.

Meanwhile, European Parliament President Roberta Metsola joined leaders for the first part of the summit. Metsola said she had made it clear to them that “the Parliament is not a rubber-stamp and never will be.”

9) Talking China (without mentioning China)

Leaders discussed trade imbalances (read: China) over lunch on Thursday and welcomed the deal the European Commission struck with China last week to curb imports of Chinese hybrid vehicles. Czech PM Andrej Babiš even went so far as to call the deal “fantastic.”

POLITICO scooped that the European Commission is expected to work on trade measures tackling imports of chemicals and industrial machinery in an effort to protect European industry from unfair Chinese competition.

10) New bromance brewing

Hungarian PM Peter Magyar posted a late-night selfie with Dutch PM Rob Jetten on social media after day one of the summit. The two were all smiles and “tired, but not sad”, as Magyar put it in his tweet.

In reaction to the tweet, Jetten told reporters, “We are more or less of the same generation and a tad more direct and pragmatic than some colleagues in the European Council, so there’s a click.”

We started at 7:30 this morning in Brussels. The second shift begins after 10 PM, with Dutch Prime Minister Rob Jetten @MinPres.
Tired, but not sad. pic.twitter.com/dmtSMbqG4m

— Magyar Péter (Ne féljetek) (@magyarpeterMP) October 15, 2026

11) Back to the castle

António Costa announced that another competitiveness summit at Alden Biesen castle in the Belgian countryside will take place in February 2027, three EU diplomats told POLITICO.

Leaders already visited the castle earlier this year, and they clearly loved the Belgian countryside so much they want to return (or Costa is forcing them to go).

12) Still reeling from Ceuta

Ahead of Friday’s talks, 16 EU leaders met to discuss migration over breakfast (before discussing migration over lunch with everyone else).

According to one EU diplomat, leaders broadly agreed that the EU should be able to suspend asylum applications when faced with a sudden influx of migrants that may have been engineered on purpose. But would that mean the EU will implement pushbacks (which are banned under EU law)?

13) Denmark, Italy and Poland want to be tougher on migration

The three leaders joined forces to argue that migration is a concern for many EU citizens and is contributing to rising crime rates. That caused a delay to an already shockingly long summit.

14) There were some agreements

Italy’s Giorgia Meloni and Spain’s Pedro Sánchez found some time on the sidelines of the summit to chat about Rome’s restrictions on Spanish nationals sparked by the Ceuta crisis.

Plus, France and Germany said they had struck a deal to favor European-made cars under the Industrial Accelerator Act in exchange for weakening a 2035 vehicle emissions target, ending months of wrangling between the bloc’s two biggest economies.

15) EU leaders get the good stuff to eat

Thursday’s lunch menu featured a “full-flavored vegetable jus.” Not a little flavor, not a medium amount of flavor, but the full flavor. Then on Friday there was a “rich jus”. There was also a Champagne sauce. Only the best for our leaders!

16) The same can’t be said for reporters

Some POLITICO journalists lamented the lack of vegetarian options at the Council canteen. Pray for us.

17) No harsh words from EU to Zelenskyy

At a press conference on Friday afternoon, Volodymyr Zelenskyy was asked whether EU leaders had expressed annoyance at his recent tone toward U.S. President Donald Trump. The question followed reports that some capitals were frustrated with him and worried he was further riling the White House.

But it was all love from Zelenskyy, who said there had been no harsh words during his time in the summit room. “I heard from my European colleagues support and only support, and I’m grateful for this,” he said.

18) No hugs for Fico

As Zelenskyy entered the European Council building, he was seen hugging and kissing fellow leaders — with one exception: Slovakia’s Prime Minister Robert Fico received no hug. That may well have been because Slovakia is preparing to revive a dormant cooperation forum with Moscow.

19) 20M Ukrainians could flee to Europe if Russia wins war

Zelenskyy issued a stark warning to Europe: if Russia wins the war, as many as 20 million Ukrainians could be forced to flee to Europe. Over 4 million Ukrainians already live in EU countries under temporary protection status, according to Eurostat. 

20) EU leaders have forgotten about Britain … or have they?

There was plenty of talk across the Channel this week about the U.K. potentially rejoining the bloc, but the subject did not come up at the summit, even with an EU-U.K. summit due next month. EU leaders have more pressing issues on their minds.

Still, some had things to say about the U.K.’s relationship with the EU. Foreign policy chief Kaja Kallas said “all our friends are welcome to join,” naming Britain alongside Canada, Norway and Iceland as partners seeking closer ties.

Latvian Prime Minister Andris Kulbergs suggested the U.K. “should come back to the family,” although he also said that Russia “had its hands on Brexit.”

21) At POLITICO, we save the best for last

Covering European Councils often involves a lot of waiting around, but during this summit conditions were a little tougher because of a phantom farter among reporters waiting for Zelenskyy’s press conference. POLITICO went viral in Brussels’ diplomatic and journalistic circles for reporting the hard facts on our live blog.

While this summit’s agenda was packed, in the end not many concrete decisions were taken. Some might say the summit was a load of hot air.

BRUSSELS — Ukrainian President Volodymyr Zelenskyy warned Friday that as many as 20 million Ukrainians could be forced to flee to Europe if his country falls to Russia.

“Russia is killing us,” Zelenskyy told reporters at a press conference on Friday during a summit of European Union leaders, adding Ukrainians were being “pushed” out of their country. “They [Russia] don’t want to stop.”

In the early days of Russia’s full-scale invasion, millions of Ukrainians fled their homes in Europe’s fastest and largest refugee crisis since World War II. Today, over 4 million Ukrainians live in EU countries under temporary protection status, with the largest populations in Germany, Poland and Czechia, according to Eurostat. 

Zelenskyy’s stark warning comes as Ukraine heads into a brutal fifth wartime winter under Russian bombardment. Kyiv faces a budget shortfall of $30 to $35 million next year, according to projections from the International Monetary Fund — even accounting for a €90 billion loan Brussels agreed to provide last year. 

The Ukrainian president traveled to Brussels to meet with European leaders and shore up financial support for his embattled country. While the EU is Ukraine’s staunchest backer, the bloc’s list of priorities is stacked with rising energy costs, looming elections, geopolitical crises and an impasse over its €2 trillion budget. 

La volonté de la Commission européenne de rendre les milliards de l’UE plus réactifs aux crises à venir pourrait aussi les rendre plus exposés aux risques d’abus, avertit la Cour des comptes européenne.

Son président Tony Murphy alerte que les principaux piliers de la réforme du budget à long terme de l’UE, élaborée par la Commission, risquent de brouiller la vision des agents chargés de veiller à ce que les fonds publics soient dépensés comme prévu.

“Il nous est plus difficile de suivre l’argent”, a-t-il souligné. “On dit à l’Etat membre : ‘Voici une somme considérable, et vous faites en sorte que tout est en ordre.’ C’est en quelque sorte d’autocontrôle.”

Cet avertissement intervient alors que l’épineux débat du montant du budget 2028-2034 de l’UE est au menu du sommet des dirigeants européens à Bruxelles cette semaine, et que la Cour a constaté une augmentation des irrégularités dans l’utilisation des fonds publics.

Outre le montant total des moyens, se pose la question de leur répartition. Après un cycle budgétaire marqué par la pandémie, les guerres et les conséquences du changement climatique, la Commission souhaite rendre le prochain budget plus agile. Pour ce faire, elle prévoit d’en affecter environ la moitié — soit près de 1 000 milliards d’euros sur sept ans — à une enveloppe unique dans laquelle les pays pourront puiser pour remplir leurs objectifs dans des domaines comme l’immigration, l’agriculture ou le développement régional.

Ces fonds destinés à l’agriculture et au développement régional — souvent octroyés sous forme de subventions aux exploitations agricoles et aux projets locaux — sont depuis longtemps exposés à la fraude et aux détournements.

Selon Tony Murphy, accorder aux gouvernements nationaux une plus grande marge de manœuvre pour réorienter leurs dépenses rendrait le suivi de ces dernières encore plus difficile.

“Il y aura une certaine flexibilité, mais à quel prix ?”, a-t-il soulevé lors d’une interview. Une grande partie du contrôle dépendra des mesures de surveillance que chaque pays a déjà mises en place.

D’autant que les irrégularités dans l’utilisation des fonds du budget de l’UE sont en hausse. Les erreurs de versement se sont élevées à 5 milliards d’euros l’année dernière, selon le dernier rapport de la Cour des comptes européenne.

Dans le prochain budget de l’UE, il pourrait même s’avérer impossible d’estimer ce chiffre, a prévenu Tony Murphy, car les auditeurs de chaque pays ont des rôles et des méthodes de travail différents. “Année après année, nous avons constaté que le travail de ces autorités d’audit n’est pas entièrement fiable”, a renchéri son chef de cabinet, Wolfgang Stolz, lors de l’entretien.

Dans un communiqué, la Commission a défendu sa proposition, soulignant que les “principes fondamentaux” du système de contrôle actuel resteraient en vigueur. Les autorités nationales “fonctionnent bien”, a-t-elle affirmé, tout en précisant qu’elle se réservait le droit de demander aux Etats membres de “modifier le plan ou de mettre en place des mécanismes de correction si nécessaire”.

Des fonds mélangés aux budgets nationaux

L’une des innovations proposées par la Commission consiste à intégrer la politique agricole commune (PAC) — qui constituait jusqu’à présent une ligne budgétaire à part entière — dans un fonds gigantesque appelé plan de partenariat national et régional.

Tony Murphy a souligné qu’il ne prônait pas un modèle plutôt qu’un autre. Mais à mesure que les fonds européens s’intègrent de plus en plus aux budgets nationaux, il sera plus difficile pour Bruxelles de contrôler où va réellement son argent. La PAC est plus facile à contrôler lorsqu’“elle n’est pas mélangée à ce méli-mélo”, a estimé le président de la Cour des comptes européenne.

Les articles de presse sur des subventions agricoles versées pour de faux pâturages en Grèce ou sur des fonds destinés à soutenir le tourisme rural en Slovaquie qui financent de luxueuses villas pour les riches illustrent de manière frappante la difficulté de contrôler ces versements dans le cadre du système actuel.

Et le modèle sur lequel repose le nouveau système de dépenses — le fonds de relance post-Covid de l’UE — n’est pas de bon augure, a pointé Tony Murphy. Si les pays ont désormais plus de facilité à affecter les fonds là où ils sont nécessaires, les dépenses sont également devenues plus opaques. Les nouveaux plans nationaux ont été élaborés selon le même modèle.

Dans le cadre du système budgétaire actuel, la Cour des comptes européenne peut se rendre physiquement sur place dans une exploitation agricole bénéficiant de fonds européens. En revanche, dans le cadre du fonds de relance post-Covid, l’UE ne publie chaque année que la liste des 100 principaux bénéficiaires.

“Ce n’est pas très transparent. Je veux dire, où va réellement l’argent de l’UE ? C’est ça qui compte”, a insisté Tony Murphy. “On a un fonds qui regroupe différentes politiques publiques, avec des objectifs et des échéances complètement différents, des mécanismes de mise en œuvre différents et moins de prévisibilité.”

Cet article a d’abord été publié par POLITICO en anglais, puis a été édité en français par Jean-Christophe Catalon.

BRUSSELS — EU leaders will go back to the drawing board in November as they race to finalize a deal on the bloc’s next seven-year budget by the end of the year.

During the first day of a two-day summit in Brussels on Thursday, European Council President António Costa announced he was convening an additional gathering on Nov. 26 in a bid to overcome disagreements and lay the ground for a final deal in December. To bring the sides closer to an agreement, he will present new budget figures before the meeting, according to an EU official, who was granted anonymity to discuss the confidential planning.

Costa is pressing leaders to finalize negotiations by the end of the year — before elections in France, Italy and Poland in 2027 threaten to derail the talks.

In a speech to the leaders, Costa warned that going past the end-of-year deadline will delay EU payments to farmers and researchers past Jan. 1, 2028, when the new budget is scheduled to come into force.

If leaders fail to reach a deal in December, the electoral calendar might push an agreement to May or even October 2027, Costa warned leaders in his concluding remarks, according to two EU diplomats briefed on the discussions.

Pressure on governments

Costa’s plan received a major boost on Thursday from French President Emmanuel Macron, who told fellow leaders that he won’t have a political mandate to sign a deal close to the French presidential elections in April 2027.

This is a major reversal for France, which has previously been unwilling to commit to the end-of-year deadline.

Macron’s words put more pressure on governments to advance the talks over the coming weeks — although some cast doubt on his good intentions.

“There are so many elections next year. [French far-right leader Marine] Le Pen herself [said] it’s undemocratic if we were now to agree,” said one EU diplomat.

Just hours before the leaders’ gathering, Le Pen renewed calls to halve France’s contributions to the EU budget if she wins the presidential elections next year.

She said that rushing the budget agreement before the French elections would be “a democratic scandal.”

The new frugal

Costa is stuck between messy domestic politics across Europe and hardening stances among the EU’s 27 leaders.

The so-called frugal EU countries pushing for major budget cuts — Germany, Netherlands, Austria, Sweden, Denmark and Finland — have publicly said that an Irish proposal envisioning €159 billion cuts doesn’t go far enough.

On Thursday, the six hardliners were joined by Belgian Prime Minister Bart De Wever, who joked in a press conference after the summit that “I’m married to a Dutch person so I’m very frugal also in my personal life.”

However, behind closed doors the budget hardliners employed a more conciliatory tone.

German Chancellor Friedrich Merz — the unofficial leader of the frugal camp — said that the Irish proposal has achieved progress despite reductions still being needed, said two EU diplomats briefed on the discussions.

He pointed to EU payouts to poorer regions, as opposed to farmer’s subsidies, as an avenue for cuts.

On the other side of the spectrum, Spanish Socialist Prime Minister Pedro Sánchez — who will try to cling on to power in an election on Nov. 29 — insisted that the budget is way too small.

“It is a distribution of misery,” he told fellow leaders during the discussions, according to the diplomats. He was joined by Italy’s right-wing Prime Minister Giorgia Meloni — an ideological foe on most issues, but an ally of sorts in the budget battle. She insisted that no further cuts to the budget will be accepted.

To bring sides together closer to a deal, Costa promised to advance progress on EU-wide taxes, or own resources, to finance the next seven-year budget and reduce national contributions.  

He will explore the European Parliament’s proposed taxes on crypto firms, online gambling and tech giants as well as a Greek idea to funnel future national sales of 6G mobile spectrum to the EU budget.

But given the level of opposition, getting EU countries to agree to any of these options will no be no mean feat.

“It is time to be realistic and work on what is plausible and reasonable, instead of wishful thinking,” said another EU diplomat.

BRUSSELS — Ukrainian President Volodymyr Zelenskyy will make a direct pitch to European leaders for more help on Friday, amid a crisis of faith among allies over Donald Trump’s latest steps favoring Russia. 

At the second day of an EU summit in Brussels, Zelenskyy joins European prime ministers and presidents as they discuss Ukraine’s need for more weapons and cash, with concern growing that Kyiv faces a shortfall of billions of euros next year. 

The reality of the threat to European security from the four-year-long war penetrated the summit bubble after air drones hit two ships in or near Romanian waters, prompting emergency talks with NATO.

“We all in Europe want this war to end,” Zelenskyy said on social media as he arrived in the Belgian capital on Thursday. “And for that, signals of strength are needed — more real pressure on Russia and more defense support for Ukraine.”

It is especially important, Zelenskyy said, to “act together to protect lives.” But unity among European leaders is in short supply at a meeting already riddled with tensions. 

EU governments are pitted against each other in their own fraught negotiations over how much money to commit to the 27-country bloc’s budget. With populists surging, discontent raging and elections scheduled in major power centers across the continent, under-pressure leaders are a long way from approaching a deal.

That’s the combustible mix of financial discussions the U.S. president waded into.

Trump’s decision to open up American markets to previously banned Russian diesel — intended to ease price pressures in the U.S. — risks tilting the balance of an expensive war in Russia’s favor, three European officials warned. Putin’s war chest can now swell from additional fossil fuel exports, while Ukraine struggles for cash. 

As they arrived for the first day of the marathon two-day gathering on Thursday, EU national leaders began informally discussing options for how to help redress the balance. That discussion should to be picked up again around the summit table on Friday.

Russian assets

One idea rapidly rising back up the agenda is the fraught question of whether, or how, to make use of some hundreds of billions of euros of frozen Russian financial assets held in European banks. 

The bulk of these rest with the Euroclear depository in Brussels. A previous attempt to grab the funds and send them directly to Kyiv was blocked by the Belgian government ― and other countries less prominently ― over concerns it would be exposed to legal action. 

But Sweden, Finland and Germany want to take another look at the assets. The European Commission is to come up with a new detailed assessment of Ukraine’s funding needs and an options paper on how to help, including the use of assets, according to officials from these countries. 

As the summit began, German Chancellor Friedrich Merz said he had been urging his counterparts to “do everything we can to help Ukraine get through the winter and continue to support it next year as well.” 

“We will also have to increase funding once again in order to provide Ukraine with truly long-term assistance,” he said. “I remain firmly convinced that we are not only defending Ukraine’s territorial integrity, but also the political order of Europe, which is truly under pressure from Russia in every respect.” 

A German official earlier suggested that of the available options to help Ukraine, including a loan and direct grants from national governments, using the assets was the most viable way forward and should be “discussed.”

A U.S. proposal to unfreeze some of the Russian assets and transfer them to a U.S.-controlled entity so Washington could use them as leverage in peace talks with Moscow also attracted strong criticism.

Merz told reporters that the assets had been frozen in Europe and “should remain frozen in Europe … That is our business, and we will decide on it.”

‘Try again’

Finland’s Prime Minister Petteri Orpo told POLITICO as the summit began: “The best solution would be that we will have a solution on how to use frozen assets … We have to try again.” 

Sweden is also backing the move to re-examine options on using the assets to help Ukraine’s future funding needs. “Doing nothing is not an option,” Swedish EU Affairs Minister Jessica Rosencrantz told POLITICO. “The Commission is looking into different financial options, and we need to get them on the table quite soon,” she said. 

Leaders at this week’s summit should “be really honest that Ukraine needs increased financing” and that the EU “must really step up,” she added.

Zelenskyy met Belgian Prime Minister Bart De Wever, the main opponent to a deal on assets, for talks on Thursday and thanked him for his country’s support so far.

Speaking to reporters after the first day of the summit, De Wever said the assets should be looked at as part of a future peace agreement. “Are there people on this planet who maybe dream of doing it differently this time and operationalizing those assets earlier for certain purposes? The answer to that question is: Yes there are,” he said. “Are they in this building? They are. Are there outside this building? Yes there are. Do I want to talk about it? No, I don’t.”

For Finland’s Orpo, Trump’s “terrible deal” with Putin on diesel, and the apparent U.S.-imposed limits on Starlink technology to help Ukraine counter Russian attacks, are hard to understand.

“My message to [Trump] is that we are allies,” Orpo said in an interview. “We are in NATO. And what is the biggest threat against NATO? It’s Russia — and that is why there is no logic. I don’t have answers. I have many questions.” He said Trump may be focusing on winning votes ahead of next month’s midterm elections in the U.S. but he should remember that his real allies lie in Europe and he should not “trust” Putin. 

Election anxiety

Finland holds its election next year at the same time as what could be a seismic contest in France. Far-right leader Marine Le Pen is leading the polls for the French presidency and wants to cut aid to Ukraine and slash the EU’s budget. 

French President Emmanuel Macron, who is constitutionally barred from standing next year, warned EU leaders that they must get a deal on the bloc’s next budget by December, otherwise it will be too late. 

But the 27 leaders remain split and show no signs of bridging the gap between “frugal” countries like Germany, Sweden and the Netherlands, who want to limit the settlement, and others such as Italy and Romania, who are on the side of bigger pots of cash for regional development and farming. 

European Council President António Costa also sees the urgency. He believes a deal before the end of the year is not only necessary but achievable, according to two EU officials.

Costa, who is taking over the negotiations from Ireland in its role at the helm of the rotating presidency of the Council of the EU, believes failing to secure a deal by December would push the entire budget negotiating process beyond the electoral cycle. That would potentially delay a deal until October next year — perilously close to the new EU budget taking effect in January 2028. 

In an effort to make progress on the budget talks, EU leaders will return to Brussels for an extra summit next month.

Camille Gijs, Hanne Cokelaere and Gregorio Sorgi contributed reporting.

BRUSSELS ― António Costa is supposed to be the dealmaker who brings European leaders together. Increasingly, his efforts are going unrewarded.

At a summit of the bloc’s national leaders on Thursday, Costa — who, unlike most of the EU’s current big beasts, is a Socialist — suffered his most stinging criticism since taking the role of European Council president nearly two years ago. The ire centered on his handling of unrelated negotiations over curbing energy prices and the EU’s next seven-year budget.

Governments were looking for both debates to show signs of progress at the two-day gathering, which was scheduled to continue on Friday. What they got was, at best, stalemate ― at worst, mounting division. And a day of talking that dragged on for 14 hours with little to show for it.

The longer budget negotiations last, the “more difficulties we will have,” Finnish Prime Minister Petteri Orpo told POLITICO. “So we have to work to find a solution this year. I understand very well that it is difficult. A huge challenge.”

The stakes could barely be higher. The EU is desperate to ease the cost of living crisis and get a deal on the budget before national elections next year make finding an agreement much tougher. Disunity between the bloc’s 27 members looks even starker when Donald Trump makes moves to take Russia’s side in the Ukraine war, the economy is struggling to match the might of China and anti-EU nationalists get closer to power in Europe’s biggest capitals.

All 16 diplomats and officials who POLITICO spoke to for this article were granted anonymity to allow them to speak on a sensitive issue. They were all either in the summit room on Thursday or were immediately briefed by leaders who were. While most were critical of Costa, others spoke more positively.

Costa’s spokesperson declined to comment.

Bogged down

Costa, a former Portuguese prime minister, is appointed by leaders to chair their summits and corral them into agreement. As Brussels Playbook reported on Thursday, EU officials judge he’s entering a defining period of his presidency, racing against time to overcome huge divisions on the budget. He is widely expected to push for reappointment for a second two-and-a-half-year term next year, officials said.

Thursday’s summit was dominated by discussions unraveling on the second phase of the bloc’s carbon pricing regime, known as ETS2.

The showdown over the Emissions Trading System — both the current one, and the second iteration which is already legislated and will put a carbon price on heating and transport from 2028 — became so bogged down it forced Costa to cancel the summit’s planned press conference and delay further talks until after dinner, because they had become a “mess,” three EU diplomats told POLITICO.

With German Chancellor Friedrich Merz incensed by what Berlin saw as his Italian counterpart Giorgia Meloni’s intransigence, fiery negotiations pitted a coalition made up of Germany, Spain, France, Portugal, the Nordics and the Netherlands against a stubborn bloc of Italy with Hungary, Czechia, Slovakia and Poland (known as the Visegrád Four). Rome and the V4 group wanted the EU to postpone ETS2 because of the burden it would place on energy bills, according to five diplomats.

Leaders were fuming at Costa for allowing talks to go off the rails, two EU diplomats from different member countries said. While the pre-summit conclusions didn’t point to any rethink of ETS2, the countries tried to unpick the legislation in the summit room, leaving Costa flustered, one of them said.

Costa “wants to have conclusions ready from [pre-summit meetings of ambassadors] and not to open them during EUCO,” the diplomat said. “He is not a fan of drafting on the spot.”

Another said there was “huge frustration,” calling the tug-of-war over the wording of the energy policy “insane chaos.”

“They just went on with Italian drafts and disregarded texts that were handed in before by others, seemingly not understanding the political nuances of the whole ETS discussion,” they added.

Another accused Costa of “losing control of the room,” saying he had failed to keep track of proposed amendments and present them to EU leaders in time for the discussions. As a result, leaders were left debating without them, contributing to negotiations going on past midnight.

One diplomat and one EU official separately compared Costa with his immediate predecessors, Charles Michel ― who governments frequently criticized for a lack of dealmaking know-how ― and Donald Tusk, who enjoyed broad support throughout his term in office.

Costa performed “worse than Charles Michel” on Thursday, the diplomat said. The official said “there is frustration that things are not being dealt with a bit more Tusk-style.”

Honest broker

The annoyance went beyond the energy debate. While governments weren’t expecting a breakthrough on the EU budget on Thursday, they have started raising questions about Costa’s handling of that topic too.

Costa is determined to secure an agreement by the end of the year. In his job, the Council president must act as a honest broker and facilitate a deal among 27 governments.

Northern EU countries are worried he’s favoring southern countries, according to a further four EU diplomats.

One EU diplomat accused Costa of being two-faced and not acting as an honest broker in the budget negotiations.

Another diplomat, from a country that wants the budget to be smaller, said: “Costa personally and politically belongs to the other camp.”

“There is some skepticism on how he will take the process further from here,” they said. The so-called frugal countries are calling on Costa to propose further cuts ahead of a special EU summit on the budget that was confirmed Thursday for Nov. 26.

‘Superb deal maker’

Many governments still believe Costa may succeed over the long term. Even those who acknowledge that his honeymoon is over ― a period when he was roundly praised for being a safe pair of hands and avoiding diplomatic faux-pas ― retain faith in him.

Belgian Prime Minister Bart De Wever defended Costa as “capable” and “shrewd” after the first day of the summit — praising the Council president for largely avoiding drafting on the day, unlike Michel.

Costa “avoids negotiation about the wording on the table which happened all the time under his predecessor and which annoyed the hell out of everybody because then you are here until three o’clock to discuss about syllables, commas and words that the next morning you cannot see the difference anymore,” De Wever said. “You don’t even know anymore what you are negotiating about.”

Other diplomats said the disarray wasn’t Costa’s fault, and blamed the leaders who tried to unpick the energy legislation, notably Meloni. “He did not want to reopen the conclusions, it was the V4 and Italy who did so,” one said. “I don’t see what he could have done differently.”

Another EU official defended the sheer difficulty of the task faced by the Council president. “Discussing drafting at leaders’ level is not the most straightforward thing in general.” On energy, the official said leaders wanted to have “proper consideration” of the different proposals by countries, which had “opposing interests.”

One of the diplomats more critical of his political leanings on the budget said Costa was “impeccable” in his behavior. “He’s a superb deal maker.”

The next few weeks will show how true that turns out to be.

Hanne Cokelaere, Camille Gijs, Sebastian Starcevic, Gerardo Fortuna and Hans von der Burchard contributed to this article.

BRUSSELS ― The EU should consider approving a three or four-year budget instead of trying to plan the bloc’s financial needs for seven years, the president of Cyprus told POLITICO.

“We’re discussing the budget in 2034 and now we’re in 2026,” Nikos Christodoulides said in an interview on the sidelines of Thursday’s summit of EU leaders in Brussels.

A three or four-year budget might be “easier” for some member countries to swallow, he suggested. “Why not open the political discussion?”

“You don’t know what’s going to be the situation in 2030, 2031,” he added. “I mean, look what happened with Covid, with the Ukrainian war … It’s not possible to declare all your priorities today.”

The EU’s seven-year, roughly €2 trillion budget has to be agreed by all 27 member countries but has two deeply entrenched camps on either side: The so-called frugals, comprised of Germany, the Netherlands, Sweden and others who want a smaller budget, and the friends of cohesion, a loose grouping of 17 countries that do not want major cuts to agriculture and regional funds.

An EU official close to the budget negotiations said the idea of a shorter timeframe was weird.

EU law allows a budget of “at least five years,” though every budget has been seven years since 1993.

The odds of the budget being approved by the end of the year are increasingly slim, with an election in Spain in November, which polls indicate Prime Minister Pedro Sánchez will lose to the center-right and far-right, potentially blowing out the timeline for consensus to 2027.

“Everybody used to understand that we need to finish … a political agreement by the end of the year,” Christodoulides said. “Now, with the situation in Spain, elections there,” that is less likely to happen.

Christodoulides also said he expected the budget to be cut by around a 10th compared to the budget proposed by the European Commission. Last week, the Irish government proposed an 8% cut compared to the Commission’s proposal.

“I think we may end up on 10% or 11%,” he said. “Double digits.”

Zoya Sheftalovich contributed reporting.

BRUSSELS — There is “no logic” to U.S. President Donald Trump’s recent moves to take Russia’s side in the Ukraine war, and he should remember his true allies lie in Europe, Finland’s prime minister said Thursday. 

In an exclusive interview with POLITICO, Petteri Orpo summed up the shock and dismay among Ukraine’s allies after Trump announced a diesel deal with Russia’s leader, Vladimir Putin, and reportedly imposed limits on Kyiv’s access to the military intelligence and technology needed to counter Russian attacks.

“My message to him [Trump] is that we are allies,” Orpo said on the sidelines of the European Council summit in Brussels. “We are in NATO. And what is the biggest threat against NATO? It’s Russia — and that is why there is no logic. I don’t have answers. I have many questions.” 

Trump alarmed European leaders and horrified Ukrainian President Volodymyr Zelenskyy this week by announcing a deal to release Russian diesel onto the market, apparently in an attempt to lower fuel costs for American consumers. Ukraine’s allies fear the move will boost Russia’s revenue from fuel sales, giving it more money to spend on war. 

Trump also said Ukraine should stop hitting Russian fossil fuel facilities — as part of what he said was a ceasefire on energy infrastructure — and should replace Zelenskyy. 

Finland is an influential voice among Ukraine’s European allies: The country has the EU’s longest land border with Russia, at 1,300 km, and its president, Alexander Stubb — a talented sportsman — won Trump’s respect on the golf course, giving him leeway to try to influence White House policy.

Orpo said if he were in Trump’s position “I would not trust Putin.” Zelenskyy has said he fears Ukraine is losing the U.S. to Russia’s side in the war, warning the Americans and their president are on “the wrong side of history”. Orpo said he agreed: “I think he is, and they are.” 

Ukraine now faces grave danger, he said. “The sky is open for Russia, there are missiles. They need more military support, air defense,” Orpo said. “Also, the situation is dangerous because of the latest deal between Trump and Putin.”

Midterms move

One possible reason Trump turned against Ukraine with that diesel deal is the U.S. midterm elections on Nov. 3. “I think it is because of domestic reasons — elections are coming,” Orpo said. “But we need to get them back.” Nonetheless, he said the amount of Russian diesel that could be sold to the U.S. is too small to make much of a difference for American consumers. 

Whatever happens, EU leaders must equip Ukraine with weapons and cash, whether or not they can rely on the U.S., he said. “Today, we need to find a solution [on] how to support Ukraine, how to finance Ukraine in this winter, but also in next year,” Orpo said. “It’s crucial.”

Finland and Sweden are among the countries pushing the European Commission to reopen the fractious debate over how to use Russia’s financial assets currently frozen in European banks, especially in Belgium, which blocked a deal to raid the funds last year over legal concerns. 

“The best solution would be that we will have a solution on how to use frozen assets,” he said. “We have to try again,” Orpo said. 

Finland has asked the Commission “to continue work with Belgium, and the other member states, to find a solution.” He said he hoped to hear an update from the Commission during the summit. “It’s a better solution than using our own money.”

Budget blues

European leaders are arguing this week over their long-term budget, which Brussels officials want to finalize by the end of the year. Many diplomats do not expect a deal this year, and some leaders say they’re in no hurry. 

But others want the budget, worth around €2 trillion, signed off by December because they fear next year’s European elections — especially if far-right leader Marine Le Pen wins the French presidency — will derail negotiations. 

The longer budget negotiations last, the “more difficulties we will have,” Orpo said. “So we have to work to find a solution this year. I understand very well that it is difficult, a huge challenge, but I cannot see how it would be easier next year, because in France elections are coming, for example.”

Finland also has an election coming up in April 2027. Orpo’s center-right National Coalition Party is struggling in the polls. “This time has been very difficult,” he said. “But, finally, our economy is growing.”

Orpo’s Swedish sister party, the Moderates, mounted a late surge in last month’s election. Although that seems unlikely to keep them in office, Sweden’s Moderates still have a slim chance, even though many commentators had written them off long before the vote.

“They did excellent campaign work, and in the end of the day, people vote Moderates, not populist or socialist,” Orpo said. “I would like the same in Finland.”

BRUSSELS — French president Emmanuel Macron warned fellow EU leaders they need to get a deal on the bloc’s seven-year budget by the end of the year because it’ll be too politically difficult after that, four European diplomats said.

His words rachet up the pressure on the EU to overcome their significant differences over the coming weeks.

During a closed-door discussion on Thursday evening, Macron said he wouldn’t have a political mandate to sign a deal close to the French presidential elections in April 2027, the diplomats, all briefed on the conversation, said.

Macron “said that, starting from January, there will be no political room” for concluding an agreement, one of the diplomats said.

The EU’s 27 governments are divided over the total size of the 2028-2034 budget. Leaders gathering in Brussels are discussing the Irish plan, which envisions cuts of €159 billion in current prices to the Commission’s nearly €2 trillion proposal. 

European Council President António Costa is pushing leaders to finalize negotiations during a summit in December — before elections in France, Italy and Poland in 2027 threaten to derail the talks — but some governments and EU officials have said such a timeframe is very unrealistic.

One EU diplomat dismissed Macron’s intervention as a threat to support Costa on the December deadline. “EU would be ungovernable if we were to take into account all the local elections,” they added.

French far-right leader Marine Le Pen, who is leading the polls to replace Macron, pledged to halve France’s contributions to the EU budget if she comes to power.

During a press conference in Brussels on Wednesday, Le Pen accused the EU of speeding up talks to prevent France’s next leader to have a say.

Several leaders are unwilling to commit to the end-of-year deadline, fearing that time pressure will undermine their leverage in the negotiations.

“We will not sign an agreement that is not beneficial to us just to meet a deadline,” Italian Prime Minister Giorgia Meloni told the country’s parliament on Wednesday. “We will sign an agreement only when it is right for Italy.”

Une rude bataille s’engage pour faire adopter le prochain budget de l’Union européenne. Non seulement les 27 pays sont divisés sur son montant et sur ses priorités mais plusieurs élections nationales compliquent l’équation politique. En amont du sommet du Conseil européen de jeudi et vendredi, Marine Le Pen s’est d’ailleurs rendue à Bruxelles pour mettre en garde contre la conclusion d’un accord avant le scrutin français. Que se joue-t-il réellement avec ces discussions ? La demande du RN de repousser l’adoption du budget est-elle justifiée ? Marine Le Pen propose-t-elle une sortie déguisée de l’UE en voulant couper dans la contribution française ? Anthony Lattier en discute avec Marion Solletty et Giorgio Leali, journalistes à POLITICO.

EU leaders meet today for their first chance to beef about the budget face to face.

On the show, Zoya Sheftalovich and Sarah Wheaton dive deeper into why leaders look increasingly unlikely to reach an agreement on the EU’s next money pot by December. Plus, Zoya obtained a document revealing deepening relations between Russia and Slovakia. Will that be a cause for concern around the Council table?

Next up, Zoya spoke with Defense Commissioner Andrius Kubilius on stage yesterday. His main message? Europe should boost its defense capabilities and stop relying so heavily on U.S. military support.

And finally, ECB President Christine Lagarde plugged her upcoming memoir at a press conference … is she allowed to do that? 

If you have a question or comment, don’t hesitate! message us on our WhatsApp here or at +32 491 05 06 29.

Articles mentioned in this episode:

• “How to watch the EU leaders’ summit like a pro.”
• “Slovakia deepening ties with Russia, document shows.”
• “Lagarde’s book plug raises questions about ECB ethics standards.”
• “Weakened Macron and Merz sink hopes of a quick EU budget deal.”

Die Berliner Landespolitik manövriert sich erst in eine Sackgasse und will nun doch daraus rausfinden. Wegen des Streits um antisemitische Strömungen in der Linkspartei stehen die Sondierungsgespräche mit SPD und Grünen auf der Kippe, werden aber heute fortgesetzt. Wie sich das rot-grün-rote Bündnis gegen den Widerstand von SPD und Grünen im Bund retten will, zeigt Maximilian Stascheit auf.

Auch die Bundes-SPD kämpft mit schlechten Umfragewerten und internem Frust vor dem anstehenden Parteitag im Dezember. Im 200-Sekunden-Interview erklärt der nordrhein-westfälische SPD-Fraktionschef Jochen Ott, warum seine Partei eine neue Vision braucht und wie der Weg aus der Krise aussehen soll.

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BRUSSELS — The EU border agency Frontex is suspending a support program for deported migrants after its budget for the year ran out earlier than anticipated, emails seen by POLITICO show. 

The border agency paused new applications for reintegration support under its program on Oct. 2 after estimating that costs had “reached a level that does no longer ensure full financial coverage,” according to an email sent by Executive Director Hans Leijtens to staff on that date.

The program, which has operated since 2022, offers financial assistance, healthcare, vocational training and counseling to people who are returned to their home countries after being refused the right to stay in the EU. Reintegration support forms part of the EU’s plan to boost returns of unsuccessful asylum-seekers.

The suspension comes as the EU seeks to step up deportations from the bloc — a leading pillar of EU migration policy, and the object of new legislation adopted earlier this month — and weeks before the European Commission is expected to propose expanding the mandate of the border agency, including its role in returns and reintegration.

Frontex cannot resume the program without additional cash. The agency asked the Commission for more funds, but is waiting for clarity on the EU budget for 2027, and the next seven-year budget starting in 2028, the emails said.

“There is no point in talking about a more ambitious European return policy without also talking about the resources needed to deliver it,” Frontex spokesperson Chris Borowski told POLITICO. “Ambition and funding have to go hand in hand.”

Borowski confirmed that the agency had suspended new cases, but stressed that individuals already been accepted into the program wouldn’t be affected and that Frontex would also continue to offer EU countries “other forms of assistance” on returns, such as operational and technical support.

“Returns do not end when a plane lands. Helping people rebuild their lives after returning to their home countries is an important part of making migration management work. It takes planning, people and money,” he said.

With 2,368 new cases per month on average, the agency took on significantly more migrants seeking reintegration support than it expected. Cases in September were 63% higher than Frontex’s target, according to Leijtens’ email to staff. In the first half of this year, the agency took on around 75% more cases than it did in the same period last year.

In previous years, Frontex was able to assign additional funds from other parts of its budget, the email says — signaling the agency has had to search to find the cash to keep the program running in the past.

“Frontex does not have the necessary appropriations to cover the needs further as MFF allocations did not consider that Frontex would be expected to take over EURP funding at the scale we have seen today,” Leijtens wrote, referring to Multiannual Financial Framework, the EU’s seven-year budget.

The agency has raised the issue with the Commission but “no further commitments could be made onwards,” according to the email.

The program’s suspension raises questions about the future of the bloc’s migration approach. Reintegration is “the key ingredient” to making the EU’s returns strategy work, Lukas Gehrke, the director of the U.N.’s migration organization’s global office in Brussels, told POLITICO.

Forced returns are expensive and come with a higher risk of human rights infringements, whereas reintegration support boosts voluntary returns, reduces people’s propensity to attempt to reach the EU again, and tends to ease cooperation with the country to which they return, he argued.

“That means every euro spent on return with reintegration is a euro spent in a more sustainable way,” Gehrke said.

‘Do not argue or defend the EU policy’

In emailed guidance on how to communicate the suspension to migrants who applied for support, seen by POLITICO, staff were told to “acknowledge the institutional problem” with reintegration program funding “so the returnee does not feel personally targeted or punished.”

Counselors should be transparent, validate migrants’ disappointment, wait for their emotions to pass and shift the conversation to what they could still do upon their return, the guidance read, advising: “Do not argue or defend the EU policy.”

Potential returnees “may feel deceived, leading to anger, despondency, or complete withdrawal from the return process,” it also warned.

Expanding the agency’s Frontex mandate featured in the Commission’s five-point plan to address sudden mass movements of people, in the aftermath of migration crisis in the Spanish exclave of Ceuta. Besides stepping up the agency’s role in returns and reintegration, the plan also noted an intention to charge Frontex with monitoring the bloc’s external borders and add capacity to quickly deploy forces in the event of an emergency.

“The Commission will propose that Frontex becomes a genuinely European capability with the scale, tools and agility to support Member States wherever and whenever needed,” Commission President Ursula von der Leyen wrote in a letter to EU leaders ahead of a summit on Thursday and Friday, where migration is likely to be a flashpoint.

The plans have already raised concerns that the border agency’s mandate is being expanded more quickly than its resources.

Strengthening the border agency’s emergency response capacities, for example, comes with a tradeoff as staff that can be deployed on a moment’s notice cannot be deployed elsewhere, Leijtens, Frontex’s executive director, said at an event earlier this month.  “If they’re in Narva in Estonia, you can’t use them in Italy right now.”

Zoya Sheftalovich contributed to this report.