António Costa launches EU capital tour to shape the next seven‑year budget as Friedrich Merz pressures frugal states
Executive summary: António Costa began a tour of EU capitals to discuss the EU’s next seven‑year budget, with his first stop in Bratislava. The tour will shape the upcoming multiannual financial framework, determining funding levels for cohesion, agriculture and climate‑related policies.
Who is involved: António Costa (President of the European Council), EU member‑state leaders (notably Slovakia), and German Chancellor Friedrich Merz, who is pushing for tighter fiscal rules.
Likely next: Costa will continue his capital visits, Merz will press for budget restraint at forthcoming EU summits, and negotiators will aim to agree on a budget ceiling by late 2026.
António Costa has started a series of visits to EU capitals to gather member‑state preferences for the bloc’s next seven‑year budget, beginning in Bratislava. The tour aims to identify what countries are willing to concede in exchange for support on cohesion and agricultural funding. Meanwhile, German Chancellor Friedrich Merz is advocating stricter fiscal discipline, highlighting the tension between net‑contributor and beneficiary states. The outcome will influence the size and allocation of the EU’s multiannual financial framework.
Timeline
- — Costa tours the capitals — while Merz rallies the penny-pinchers (Politico Europe)
Analysis — what this means
Sectors affected
- EU cohesion policy
- agricultural subsidies
- renewable energy infrastructure
Regulatory implications
- The EU Multiannual Financial Framework (MFF) is negotiated under the Treaty on the Functioning of the EU, requiring unanimity among member states
- Any agreement must comply with the EU’s own budget rules, which set a ceiling of 1.00% of GNI for commitments and 0.70% for payments
- The Next Generation EU recovery instrument, established in 2020, continues to influence current budget discussions
Historical parallels
- 2020‑2021 negotiations for the 2021‑2027 MFF and Next Generation EU, which resulted in a €1.07 trillion budget and a €750 billion recovery fund
- 2013‑2020 MFF talks that cut cohesion policy funding by approximately 10 % compared with the previous period
- 1999‑2006 Agenda 2000 reform that shifted EU spending toward structural and cohesion funds
Key entities
Sources
- Costa tours the capitals — while Merz rallies the penny-pinchers — Politico Europe
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