European Union leaders are to turn their attention to the bloc's next trillion-euro budget on the final day of a summit in Brussels, before discussing the most recent developments in the Middle East.
Leaders face the challenge of financing the EU’s ever-growing financial and investment needs while many capitals are constrained by tight budgets after years of successive crises.
The joint budget for the 2028-2034 period is expected to cover traditional expenses for agriculture subsidies and support for less affluent regions, but also emerging priorities, including increased investments in competitiveness and defence.
The European Commission had proposed a budget of roughly €2 trillion. Germany, alongside some other wealthy EU countries, has urged to drastically reduce its volume.
Leaders are also expected to discuss new sources of revenue for the budget, as the EU's funds are currently largely filled with national contributions and some customs duties.
The European Parliament has previously suggested levies on digital services, online gambling and crypto-asset transactions, as well as an extension of the EU's carbon border tax.
EU member states and the European Parliament are under pressure to reach an agreement by the end of this year to allow sufficient time for the budget’s implementation.
Turning to other issues, EU leaders are to discuss developments in the Middle East after the United States and Iran signed a framework agreement aimed at ending the conflict between the two countries.
