Brussels, 16 October. EU leaders at a summit in Brussels failed to agree the seven-year budget for 2028–2034 of €1.76 trillion. European Commission President Ursula von der Leyen meanwhile proposed that the leaders discuss creating joint strategic gas reserves.
Summit participants rejected the Commission's proposal; an alternative that provided for cutting spending by €140 billion also failed to win the necessary support. The cause is cited as sharp disagreements between donor and beneficiary countries over the total size of the budget, spending priorities and sources of funding. An additional emergency meeting of the leaders is set for 26 November.
Von der Leyen's proposal came amid concerns about supply security and record-low filling of European gas storage: according to Politico, stocks have fallen to a record low, and high summer prices caused by the war in Iran weakened the market's interest in refilling them. Officials have not yet determined in what form such a reserve would be created; one senior EU official called the initiative a long-term measure to protect against future supply disruptions, by analogy with oil stocks. Two diplomats said EU leaders met a separate initiative, a Europe-wide mechanism for joint purchases of energy, without much enthusiasm.
The summit was held on 15–16 October; discussion of Ukraine was moved to the second day, while the first day focused on energy prices, the competitiveness of the economy and the Union's long-term spending. According to reports, after the first day the leaders agreed neither measures against rising fuel prices nor the main parameters of the budget.
