Edward Marchesi The European Council met in Brussels on 15 and 16 October 2026 to address some of the bloc's most sensitive challenges: the definition of a multiannual budget of nearly €2 trillion and the financing of Ukraine's needs after the second year of war. Despite tension and pressure from state chapters, the discussions did not lead to definitive decisions, but instead postponed the critical issues to subsequent meetings scheduled for November and December.
Key decisions postponed until next December
At the end of the meeting, leaders agreed to postpone the vote on the long-term budget and the Ukraine support package to a December session. This decision was influenced by upcoming elections in Spain and France, which have hardened national positions. European Council President António Costa emphasized that the issue must be addressed urgently, but also acknowledged the need for further concrete proposals from the Commission.
No documents were signed, leaving a budget hole of 70 billion for next year.
Kiev's demands and the issue of frozen Russian assets
Ukrainian President Volodymyr Zelenskyy, present in Brussels, launched an appeal: "The war will cost €155 billion next year; we need at least €70 billion more for defense, weapons, and resilience."
Ukraine also indicated a €70 billion budget hole for 2027. Proposals to use approximately €300 billion in frozen Russian assets were again raised, but the countries that opposed the previous year—Belgium, France, and Italy—maintained their position. Swedish Prime Minister Ulf Kristersson stated: "Nothing has changed; the money is not lost, but remains unused." Meanwhile, diplomats reported that the Commission is exploring alternative financing: loans from non-EU countries, idle funds, and a possible joint EU-Ukraine loan that would increase the €90 billion already approved last year.
Alternative financing proposals
Two ambassadors signaled their intention to launch a new loan package with international partners, as well as explore mobilizing the EU's emergency reserves. The goal is to bridge the €70 billion gap without resorting to Russian assets, at least in the short term. However, the discussions were marked by considerable frustration: leaders reported that they had spent little time formulating a definitive plan for 2027.
Stalemate over multiannual budget and tensions between France and Germany
The budget debate pitted two blocs against each other: the German-led "frugal camp," which favors more contained spending, and the "Friends of Cohesion" group, which is pushing for a broader budget . French President Emmanuel Macron, soon to step down, warned that he would lose his political mandate if an agreement was not reached by the end of the year. Despite their efforts, neither side was able to find common ground; the proposed measure remained stalled. Macron concluded the summit by reiterating that failure would be "damaging to European democracy."
In parallel, the summit hosted discussions on climate rules and migration. An attempt led by Polish Prime Minister Donald Tusk to amend the ETS2 was rejected by a majority of countries in favor of the current scheme. On the issue of migration, Denmark, Italy, and Poland pushed for a link between irregular migration and crime, a proposal that received the support of about 10 states, including Hungary, and challenged the policy of regularizing thousands of immigrants initiated by Spanish Prime Minister Pedro Sánchez.
Commission President Ursula von der Leyen promised an emergency response framework by the end of the year to manage any sudden migration flows, citing recent tensions in the Spanish enclave of Ceuta. Despite their differences, all leaders confirmed their willingness to continue negotiations at upcoming meetings in Dublin and Brussels, hoping to overcome the current impasse.