EU Leaders to Demand Energy Price Action, Budget Talks at Summit

European Union leaders convene in Brussels on Thursday for a two-day summit dominated by the energy crisis and the next multiannual budget. The European Council is expected to ask the Commission to propose additional measures to curb rising energy prices affecting households and businesses.

Officials acknowledge there is no "magic solution" to immediately lower costs, but note a new awareness that coordinated EU-level action is necessary. Proposals on the table include optimizing refinery capacity, joint energy purchasing, and a windfall tax on energy company profits backed by Germany, Italy, Spain, Poland, Austria, and Portugal.

“There is no magic solution that can immediately address the problem for consumers and businesses”

Greece and Italy are seeking greater fiscal flexibility to fund temporary relief measures, while Italy and the Czech Republic have requested temporary changes to the Emissions Trading System. The Commission insists on fiscal discipline to avoid new debt pressures.

The summit also marks the start of budget negotiations for the 2028-2034 period. European Council President António Costa takes over leadership of the talks based on the Irish presidency's proposal, which includes an 8% cut compared to the Commission's draft. Support for Ukraine amid Russia's invasion and migration management are also on the agenda.