European Council President António Costa has said European Union leaders need to agree the bloc’s next long-term budget by the end of this year to avoid a break in funding from 2028.
Speaking in Vilnius after meeting Lithuanian President Gitanas Nausėda, Costa said the “decisive challenge” for EU leaders this autumn would be negotiating the budget for 2028 — 2034, according to his statement issued on Thursday by the European Council.
He said an agreement was needed by the end of 2026 to ensure EU funding for farmers, businesses, students and other recipients is not interrupted in 2028.
Costa said the next budget would need to focus on “competitiveness, industrial transformation, defence, security, and strategic resilience”, while continuing to support cohesion policy and the Common Agricultural Policy, which supports farmers and rural areas.
He also said the structure of the budget would look “completely different” from previous budgets as leaders try to balance long-standing spending priorities with new challenges.
He said “new own resources” — EU-level revenue streams — would be an essential part of any overall agreement because resources are limited.
Security, Ukraine and enlargement
Costa also thanked Lithuania for its support for Ukraine, including military assistance, and said the EU would “continue to increase the pressure until Russia comes in good faith to the negotiating table.”
He said EU enlargement remained part of Europe’s security agenda, with Ukraine, Moldova and the Western Balkans progressing towards membership.
Lithuania has identified enlargement as one of the main priorities for its upcoming presidency of the Council of the European Union, Costa added.
The EU Council presidency rotates between member states every six months and is responsible for chairing meetings and helping to steer negotiations on EU laws and policies.
Lithuania is due to take over the role in January 2027, Costa said, adding that he had discussed preparations for the presidency with Nausėda in Vilnius.
