European Union leaders ended a two-day summit in Brussels on 16 October with an agreement to take coordinated short-term action on energy prices, and with work still to do on the bloc’s next long-term budget and Ukraine’s finances for 2027. Council President Antonio Costa had called for “targeted and temporary measures”.
On energy, leaders welcomed Commission plans to extend temporary state aid for the most exposed industries, make better use of EU refinery capacity, and bundle energy purchases on a voluntary basis. They also welcomed a proposal to postpone some methane regulation obligations and asked the Commission to consider further steps, including measures on electricity price gaps between member states. Before the summit, six countries, including Germany, Italy and Spain, had backed a windfall tax on energy companies, but the Commission was wary of an EU-wide version and a working group was agreed.
The budget remains contentious. The Irish presidency’s compromise proposal for 2028-2034 is about 1.622 trillion euros, roughly 8 percent below the Commission’s proposal. Net contributors such as Sweden, the Netherlands and Austria want deeper cuts, while a 17-country group of “Friends of Cohesion” wants farm and regional funds protected. Leaders want a deal by the end of 2026, though some governments doubt that is realistic.
On Ukraine, Mr Costa said financing for this year is covered, but money must now be delivered. The EU agreed a 90 billion euro loan for 2026-2027, but 2027 financing is not yet identified, and the Commission was asked to propose how to meet it. Mr Costa also warned of intensifying Russian hybrid attacks, including sabotage and airspace violations, saying these “will not go unanswered”.
Leaders also asked the Commission to strengthen the bloc’s defensive trade tools and speed up trade diversification, and said irregular border crossings are at their lowest level since 2021.