EU countries are facing mounting pressure to finalize an agreement before French presidential elections in April 2027, which could hand power to the far-right National Rally.
German Chancellor Friedrich Merz and European Council President António Costa — who will broker the final stage of the talks — have called on EU leaders to secure a deal in the Council by the end of 2026.
The Commission’s proposal envisages €1.8 trillion to spend on EU priorities including agriculture and defense from 2028 to 2034, in addition to €166 billion to repay post-Covid joint debt. The Cypriot presidency of the Council of the EU is expected to propose new spending figures in early June.
There are lingering concerns that the National Rally’s platform — which includes slashing France’s contributions to the EU budget and downsizing military aid to Ukraine — could throw a spanner in the Council negotiations, should the party win next year’s elections.
Securing a Council agreement by the end of the year would leave plenty of time for negotiations with the European Parliament. The deadline for a plenary vote is Dec. 31, 2027, as the new budget comes into force at the start of 2028.
In a further complication, however, other major European countries — Italy, Spain and Poland — are also planning to hold national elections in 2027. A change of government in any of these nations might disrupt negotiations, as any incoming administration is likely to advance its own set of priorities in the budget.