The EU needs to agree its next long-term budget for 2028 – 2034 by the end of this year, European Council President António Costa said after meeting Austria’s Chancellor Christian Stocker in Vienna.
Costa stated that the budget should have a “new approach”, including a new structure and a different way of allocating resources, and should focus on boosting industry and innovation, protecting citizens, and defending borders, the European Council reported on Tuesday.
Cohesion policy and agricultural policy should remain “key pillars” to support regional development and food security.
He said the EU would need to make choices within limited resources to keep national contributions and the overall budget size “at a reasonable level”.
New “own resources” — EU-level revenue streams — should be part of the package to provide flexibility, Costa stated.
He added that citizens, companies, farmers and researchers were seeking predictability amid geopolitical tensions, climate change and technological transformation.
Competitiveness, migration and Ukraine
Costa also pointed to the EU’s “One Europe, One Market” agenda, which he said set out a timeline for progress in 2026 and 2027 on simplifying rules and cutting red tape, completing the single market — particularly the capital market — ensuring affordable energy, supporting innovation, and reducing strategic dependencies.
The European Council will return to competitiveness at its October meeting, and Costa said preparations were under way for that summit, which is also set to cover migration.
Migration is a “European challenge” requiring a “European response”, he said.
Costa thanked Austria for supporting Ukraine and said the EU would continue to back Ukraine while increasing pressure on Russia.
He also said leaders discussed enlargement, describing support for Ukraine, Moldova and the Western Balkans on their paths to EU membership as merit-based and anchored in the rule of law.
