EU leaders deadlock over budget as all states reject Ireland's spending plan
European Union leaders remain deadlocked over the bloc's next budget, with all member states rejecting Ireland's latest proposal that cuts spending by 8% from the European Commission's initial plan. German Chancellor Friedrich Merz warned negotiations would be "very, very difficult," while Sweden called the proposal "totally unacceptable" as it would raise its contribution by 60%. Spain's Pedro Sánchez dismissed the plan as "not assumable or acceptable," demanding contributions of 2% of GDP per state. Leaders also urged the Commission to adopt short-term measures addressing surging energy prices linked to the Middle East conflict, including extending industrial aid and pooling demand. Brussels fears far-right gains, particularly Marine Le Pen's influence, but several states say they are in no rush to finalize a deal before 2027.