EU leaders kick off summit with wrangles over high energy prices and spending
SPY•EU leaders began a summit focused on high energy prices, the bloc’s budget and competitiveness, and Chinese imports. Germany’s Friedrich Merz said budget positions remained far apart, while leaders were also expected to discuss Ukraine’s funding needs for 2027.
1. Budget talks remain divided
Leaders from the EU’s 27 members began a summit in Brussels as they debated how to design a budget to keep the bloc competitive. German Chancellor Friedrich Merz said positions remained far apart, with net contributors such as Germany opposing net beneficiaries; he called the negotiations “very, very difficult.” A French official said spending cuts alone could not resolve the issue.
2. Energy and trade tensions
Several countries put high energy prices on the agenda, while some sought to weaken or suspend the EU Emissions Trading System. Finland, Sweden and Denmark’s prime ministers warned that weakening the system would hinder investment in clean industries. Draft summit conclusions call for continued talks with Beijing and greater use of EU trade-defence measures, as officials cited job losses and a €360 billion goods trade deficit with China in 2025.
3. Ukraine support also on agenda
Leaders were expected to discuss Ukraine’s funding needs for 2027, with Ukrainian President Volodymyr Zelenskiy due to attend. Latvia’s Prime Minister Andris Kulbergs said the cost to each European citizen would be “one beer less” a year. Merz said frozen Russian assets should remain in Europe, responding to a proposal reportedly made by the United States to transfer some assets to a Washington-overseen vehicle.
