EU Summit Deadlock: 14-Hour Talks Fail as Leaders Split on Energy and Budget

European Union leaders failed to reach agreement after 14 hours of negotiations on energy costs and the EU budget, ending the first day of the summit divided into two opposing camps and with several leaders angry at European Council President Antonio Costa. The deadlock centered on the ETS2 carbon pricing system, with Italy, Hungary, Czechia, Slovakia, and Poland seeking its postponement, while Germany, France, Spain, and others opposed. German Chancellor Friedrich Merz was reportedly furious with Italian Prime Minister Giorgia Meloni, and diplomats described the situation as "chaotic," with Costa criticized for losing control of the room. Northern "frugal" countries also accused Costa of favoring southern nations in budget talks, though some diplomats defended him as a capable negotiator. A special budget summit is scheduled for November 26, with leaders hoping to finalize an agreement before national elections next year.