The Taoiseach has rejected suggestions that Ireland’s draft seven-year EU budget could undermine efforts to secure a deal before the country’s EU presidency ends.
The Government published the proposal last Saturday, prompting strong criticism from member states seeking deeper reductions to the European Commission’s original €1.72 trillion plan. The commission itself has warned that the Irish draft strips out crucial flexibility and financial buffers from the seven-year framework.
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Diplomats from the so-called Frugal states, which favour a smaller budget, have questioned whether an agreement can be reached by mid-December, when the Irish presidency is due to conclude with the final EU summit of its term.
That deadline is viewed as important because several elections next year could bring eurosceptic parties to power in major member states. There is also a tight legislative timetable if the budget is to take effect on 1 January 2028.
He said: “To be frank with you, we were never going to please everybody on this one. In fact, the response you have might be positive in a way in terms of how these negotiations work.
“There is a journey to go. It’s challenging and it’s complex and there’s a wide divergence of opinion between, say, a number of countries which make up 46% of the [national] contributions [to the EU budget].
“Those countries are of the opinion that the [European] Commission budget was too high altogether. They wanted it to come down substantially. We’ve brought it down significantly.
“There are others who want cohesion and CAP protected at all costs. So it’s a very difficult balancing exercise. The function of the [Irish negotiating] box was to be a catalyst to get negotiations going in earnest. That will happen.”
European Council President Antonio Costa speaks with European Commission President Ursula von der Leyen ahead of the beginning of the summit
Responsibility for the next stage of the negotiations will now pass to Antonio Costa, the President of the European Council, which brings together the 27 EU leaders, as well as to the leaders themselves.
The Taoiseach nevertheless insisted that Ireland would continue to act as an impartial chair on the issue.
“We have the [EU] presidency, so we’re going to be constructive players in respect of getting an outcome to this.
“My view all along has been that a larger budget is required for Europe to retain its objectives. Even though we’re net contributors, we benefit from the single market.
“But that said, this budget, even after the work we’ve done, is still higher than the outgoing budget.
“It’s very clear to us from our consultations that people want to protect CAP and cohesion [funding], but there are other issues that will come onto the table as well that may give more latitude by the time this is all over. So there’s a lot to play for.”
Alongside the long-term budget, leaders will address growing trade tensions with China, the US-Israeli war on Iran and its effect on energy costs, as well as migration.
They are also expected to examine another increase in electricity prices as global gas and oil markets tighten because of the US-Israeli war on Iran. The approaching winter is expected to place further pressure on household bills.
The summit comes less than a week after the European Commission reached an agreement with China to limit imports of hybrid cars from the country.
That agreement represents an initial step in the EU’s effort to develop a wider response to the bloc’s goods trade deficit with China, which reached €360 billion in 2025 and is expected to exceed that figure this year.
The next EU-China meeting is scheduled for March.
Draft summit conclusions suggest that leaders will urge the European Commission to maintain its engagement with Beijing, while using the EU’s trade-defence tools in full and developing additional instruments to provide further protection for the bloc.
The meeting takes place as economic concerns grow across the EU, with far-right parties seeking to capitalise on public anxiety during elections.
In June, EU leaders instructed the Commission to deliver tangible progress in trade negotiations with Beijing by October.
The hybrid cars agreement was an opening move, but the wider imbalance, covering chemicals, steel and machinery, has yet to be resolved.
China has argued that exaggerating economic imbalances is being used as a justification for protectionism and for putting pressure on, and restricting, China.
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German U-turn on Chinese imports
Proposals from France and Germany, published last week, are expected to dominate discussions.
The EU’s two biggest economies said urgent action was needed to address imports of chemicals and PET, the plastic commonly used in packaging. They also called for mechanisms that would allow the bloc to respond quickly to countries causing it economic harm.
An investigation into PET imports is expected to begin shortly.
The document represents a significant shift in Germany’s position. Just two years ago, Berlin was the strongest opponent of EU anti-subsidy tariffs on Chinese electric vehicles.
Several EU countries have also placed high energy costs on the summit agenda, with draft conclusions describing the issue as being of “critical importance”.
The conclusions refer to proposals already put forward by the European Commission, including a one-year postponement of EU methane-emissions rules for oil and gas imports, and call on the executive to propose additional short-term measures.
Meanwhile, Ukraine’s President Volodymyr Zelensky, who is due to attend the summit tomorrow, is facing mounting pressure from Russia and US President Donald Trump.
Mr Trump has faced widespread criticism after lifting sanctions on Russian diesel, a move that effectively directed $4 billion to Russia, and then apparently withdrawing intelligence support from Ukraine during a week of intensified Russian air strikes.
The move was intended to punish Ukraine for attacks on Russian oil refineries.
EU leaders will consider how Ukraine can receive further moral, political and military backing following the actions of the US president.
Additional reporting Reuters
