EU debate long-term budget at Cyprus summit

European Union leaders discussed Ukraine, the war involving Iran, and its wider consequences at an informal summit in Cyprus on Thursday night.

With Hungarian Prime Minister Viktor Orban’s veto now lifted, the EU has formally approved a €90 billion loan for Ukraine, along with its 20th package of sanctions against Russia.

On Friday, leaders turned their attention to the bloc’s next multi-year budget, with divisions emerging over spending priorities and financing.

“I think the debate on the long-term financial framework was another opportunity for member states to outline their positions. Croatia supports, in principle, the proposed two-trillion-euro, seven-year budget, on the condition that we find an appropriate way to finance it,” Croatian Prime Minister Andrej Plenković said.

“We want to maintain adequate funding for traditional policies. That is important to us as one of the newer member states, particularly when it comes to cohesion and agricultural policy,” he added.

German Chancellor Friedrich Merz stressed the need to reassess spending priorities.

“I told my European colleagues that we must agree on new budget priorities. It’s very simple — we have to find savings in other sectors,” Merz said.

“I know there are ideas about increasing the budget, but we believe this needs to be considered very carefully. Ultimately, it’s about consensus, the foundational principle of the European Union,” he added.

Polish Prime Minister Donald Tusk struck a lighter tone, joking that there was a sense of relief among leaders because there were “no Russians in the room,” referring to the absence of Hungary’s Viktor Orbán following his defeat in this month’s parliamentary elections.

“I’m really happy because the mood is totally different. It’s not only about Ukraine and Russia, the outcome of the Hungarian elections is also a clear sign that democracies are not losers,” Tusk said.