EU budget and energy crisis divide leaders in Brussels

European Union leaders are clashing in Brussels over measures to address the energy crisis and the next EU budget, with divisions emerging between fiscally conservative northern states and a larger group seeking flexibility to support households and businesses. Greece and Italy are proposing that support measures not be fully counted in primary expenditure calculations, a stance opposed by the "frugal" group including Germany, the Netherlands, Belgium, and Luxembourg. No final decisions are expected, and a new emergency summit may be needed in November. Greek Prime Minister Kyriakos Mitsotakis is advocating for targeted, temporary support funded by higher tax revenues from inflation, while also calling for a review of the Emissions Trading System. On the budget, the "friends of cohesion" group, including Greece, rejects cuts to cohesion and agricultural policies.