EU summit sees sharp divisions on migration, Ukraine and budget — major decisions postponed

European Union heads of state and government met in Brussels on Thursday and Friday for a European Council summit, but left without taking major decisions. During two days of tense talks, leaders argued over climate rules, migration policy and Ukraine's long-term financing needs. The main decisions were deferred to further gatherings in November and December. According to the source, upcoming elections in Spain and France and increasingly entrenched national positions contributed to the stalemate.

Funding for Ukraine

Ukrainian President Volodymyr Zelenskyy attended the summit. He urged the EU to agree on a financial plan, warning otherwise of an unprecedented migration crisis, with "20 million Ukrainians" potentially fleeing to Europe. He said the war would cost €155 billion next year and that Ukraine needs at least €70 billion more from the EU for defense, weapons and resilience.

European Council President António Costa said leaders did not spend much time on the issue, but asked the European Commission to produce a concrete proposal. Two diplomats told POLITICO that options under review include funds from Ukraine's non-EU allies, untapped EU funds and another joint EU loan to complement the €90 billion loan agreed last year.

The idea of using about €300 billion in frozen Russian assets also returned. Leaders rejected it nearly a year ago amid objections from Belgium, France and Italy. Swedish Prime Minister Ulf Kristersson said after the talks that "nothing has changed" and that, in the short term, money must come from other sources.

EU budget

The summit had been expected to break a months-long deadlock over the size of the EU's nearly €2 trillion long-term budget. The frugal camp led by Germany, which wants a smaller budget, and the "Friends of Cohesion" group, which wants a larger one, made no substantial move toward each other. French President Emmanuel Macron, who leaves office next year, warned that he would lack a political mandate to sign a deal if none is reached by the end of this year.

Migration and climate

Polish Prime Minister Donald Tusk's push to water down the ETS2 emissions trading scheme gained wider support than before but was defeated. Denmark, Italy and Poland tried to harden the EU's migration stance by linking irregular migration to crime; around 10 countries, including Hungary, backed the proposal, but the paragraphs were removed from the conclusions. Ursula von der Leyen, President of the European Commission, confirmed that the Commission will present an emergency response framework before year-end for sudden mass movements of migrants.