EU must seal budget deal by year-end to avoid funding gap: Costa

European Council President Antonio Costa warned on Wednesday that the European Union must reach agreement on its next long-term budget before the end of this year to prevent funding disruptions for farmers, businesses and students when the current cycle expires in 2028. Speaking in Vilnius alongside Lithuanian President Gitanas Nauseda, Costa described negotiations over the bloc’s 2028-2034 multiannual financial framework as a “decisive challenge” facing EU leaders this autumn.

“To ensure that there is no interruption in the European Union funding for farmers, our businesses, our students, and other recipients in 2028, we need to reach an agreement by the end of this year,” Costa said. He added that balancing traditional priorities with emerging security challenges would require a significantly restructured budget and new EU revenue streams to reach a comprehensive deal.

Spending priorities

Costa said the forthcoming budget should place competitiveness, industrial transformation, defense capabilities and strategic resilience at its core while maintaining support for cohesion policy and the Common Agricultural Policy. The European Council president is conducting a four-week tour of member-state capitals to consult national leaders and assess their readiness to compromise before formal negotiations intensify.

Ukraine and enlargement

Beyond fiscal matters, Costa and Nauseda discussed EU enlargement, Lithuania’s preparations to assume the rotating Council presidency in January 2027, and continued military support for Ukraine. Costa praised Vilnius’s contributions to Kyiv’s defense and said the bloc would maintain pressure on Moscow until Russia entered negotiations “in good faith,” adding that he considered the accession processes of Ukraine, Moldova and the Western Balkans “the best investment” Europe could make in continental stability.