EU summit: Battle for cash begins over €2 trillion budget

The second day of the EU summit is underway. The debate will focus on the next long-term budget, with rival camps still miles apart. The second day of the EU summit is underway, with a heavy focus on the bloc's next seven-year budget, which the European Commission has pencilled at €2 trillion. Cyprus, the country holding the rotating presidency, has proposed a "moderate" 2% cut, worth €32.8 billion, to the original draft. For the countries keen on preserving agriculture and cohesion funds, that is more than enough. But for the "frugals", now self-rebranded as "modernisers", a 2% reduction is nowhere near satisfactory. The debate on Friday is expected to see leaders double down on their red lines, demands and conditions, all of which remain deeply entrenched, despite a shared goal of reaching a final deal in December at the very latest. Follow our blog for live updates. ${title} EU leaders brace for heated discussion on bloc's next long-term budget The EU's long-term budget is on the agenda as European leaders gather in Brussels for a second day of a high-stakes summit. The discussion is expected to be a heated one. The so-called 'frugals,' or modernisers as they preferred to be called, are fuming over the recent budgetary proposal of the Cypriot presidency, which reduced the overall budget by only 2%, focusing the cuts on the funding for competitiveness and defence. "This proposal goes in the trash bin," Dutch PM Rob Jetten said when arriving yesterday. The tone sums up the mood of the net contributors, who argue that the latest proposal disproportionately benefits the so-called “friends of cohesion” countries, including Cyprus. EU leaders hold talks on common budget in battle for cash EU governments will hold substantial negotiations on how to allocate €2 trillion of the European common budget over the next seven years, pitting frugals calli… EUCO day two about to start Good morning EU aficionados, Day two of the European Council summit kicks off in Brussels today, with arrival statements by some of the 27 EU heads of state expected to start at around 8:35 CET. On the agenda: leaders will discuss migration over breakfast. Then, there will be further talks throughout the day centred on the EU’s long-term budget, with a press conference scheduled for the afternoon. This is officially what is on the cards. Yesterday was meant to focus on how the EU should address “macroeconomic concerns” — shorthand for the EU’s trade deficit with China — but much of the attention was diverted by the news that European Council President Antonio Costa opened up communication channels with Russian President Vladimir Putin at the behest of his Ukrainian counterpart, Volodymyr Zelenskyy.