EU Summit Deadlock: Budget Cuts and Energy Disputes Split Leaders

EU leaders failed to reach agreement on the bloc's next long-term budget and energy measures during a Brussels summit, with talks described as a deadlock. French President Emmanuel Macron issued a warning that a deal must be reached by the end of 2026. The proposed €1.622 trillion budget, cut by €141 billion from the Commission's initial plan, has split members into two camps. Northern "frugal" countries demand deeper cuts, while the 17-member "Friends of Cohesion" group, including Greece, opposes reductions. European Parliament President Roberta Metsola criticized leaders for agreeing to ambitious goals while cutting resources. Disagreements also persist on energy prices, with Germany rejecting further delays on emissions trading reforms. Commission President Ursula von der Leyen proposed strategic gas reserves as Europe faces historically low storage levels. Greek Prime Minister Kyriakos Mitsotakis requested fiscal rule flexibility for energy subsidies, though Brussels has resisted such exemptions.