European Union leaders resumed their negotiations in Brussels today, Friday, for the second day of the summit, amid sharp disagreements over funding for Ukraine, the use of frozen Russian assets, the long-term European budget, energy prices, and migration, at a time when concerns are growing over a decline in American support for Kyiv.

Russian Assets.. The Knot of Funding for Ukraine

Ukraine's financial and military needs topped the agenda, with European warnings about the imminent depletion of Kyiv's funds and its urgent need for financing for 2026 and 2027, particularly to provide air defense systems and military equipment.

The Danish Prime Minister Mette Frederiksen called for the use of frozen Russian assets to finance Ukrainian and European defense, holding Moscow accountable for the cost of the war. However, the proposal faced opposition from Belgium, which hosts the Euroclear institution that holds most of these assets, as its Prime Minister Bart De Wever demanded unlimited guarantees against any Russian retaliation. France also expressed legal reservations regarding the proposal.

European foreign policy chief, Kaja Kallas, warned of difficulties in relations with Washington, pointing to concerns about the reduction of some capabilities that Ukraine relies on, including the Starlink service. European Commission President Ursula von der Leyen confirmed that the EU is working on the 22nd package of sanctions against Russia, emphasizing that lifting sanctions will not precede the end of the war.

The European Budget.. Postponement of Settlement

The negotiations regarding the multiannual budget for the period 2028-2034 did not achieve significant progress, after a settlement attempt failed that involved cutting spending by about 141 billion euros compared to the European Commission's proposal.

Countries are divided between a camp calling for reduced expenditures and linking funding to objectives, led by Germany, Sweden, Denmark, Austria, the Netherlands, and Belgium, and countries that insist on protecting allocations for agriculture, regional development, and cohesion funds.

Disagreements continue over new revenue sources, with proposals to impose fees on cryptocurrencies, online gambling, and major tech companies. The divisions are delaying reaching an agreement, amid efforts to hold an extraordinary summit in November in preparation for a settlement before the end of the year.

Energy and Green Transition.. Disagreements Over Costs

Disagreements over the European emissions trading system have prolonged discussions, particularly the new system that includes buildings and land transport, amid fears of rising heating and energy costs.

Poland, the Czech Republic, Slovakia, and Hungary are calling for the implementation of the system to be postponed until 2030, supported by Greece and Italy, while other countries are urging to proceed with its implementation. In an attempt to bridge positions, leaders requested an update on the assessment of its impacts and the associated guarantees, without agreeing to a new official postponement.

Migration, Security, and European Expansion

The topics discussed included tightening border controls, establishing centers for the repatriation of migrants outside the Union, countering hybrid Russian attacks, and enhancing maritime security.

The leaders discussed the expansion of the Union and the necessary reforms to accommodate new members, primarily Ukraine and Montenegro, along with relations with Turkey and efforts to resume peace talks regarding Cyprus.

The simultaneous disagreements reveal the difficulty of building a European consensus on priorities for security, spending, and energy, at a time when the Union faces increasing pressure to support Ukraine and strengthen its defense capabilities, while maintaining a balance between national interests and shared commitments.