At the October 2026 European Council summit, European Council President António Costa faced heavy criticism from EU leaders as sharp divisions over energy policy and the long-term EU budget derailed negotiations.

 

Costa angers EU leaders as splits mar summit

At the October 2026 European Council summit, European Council President António Costa faced heavy criticism from EU leaders as sharp divisions over energy policy and the long-term EU budget derailed negotiations.

The summit, intended to resolve deep rifts, instead dragged into a 14-hour stalemate with minimal results, prompting some diplomats to complain that Costa had "lost control of the room".

Key Fault Lines at the Summit

• The EU Budget Battle: EU leaders remain deeply split over the size and priorities of the next €2 trillion seven-year EU budget. A proposal by the Irish presidency to implement a €141 billion cut targeting research, climate action, and security was met with fierce resistance.
• The Camp Split: "Frugal" northern countries (including Germany, the Netherlands, Sweden, and Finland) are demanding even deeper cuts across the board. Conversely, the 17 "Friends of Cohesion" southern and eastern nations are fighting to protect funding.
• Energy Policy Chaos: Accusations arose that Costa's team heavily favored Italian-drafted text while disregarding proposals from other nations, leading to what one diplomat called "insane chaos" over energy pricing and Emissions Trading System (ETS) rules.

Friction Over Costa's Management

Diplomats expressed growing frustration with Costa's leadership style, with one official comparing him unfavorably to his predecessors by stating he performed "worse than Charles Michel" and lacked the firmer management style of Donald Tusk. [1]

Northern "frugal" nations explicitly accused Costa of being two-faced, alleging that he failed to act as an "honest broker" because his personal and political leanings favor the southern member states. However, other EU officials defended Costa, noting that the disarray was driven by national leaders—specifically Italy's Giorgia Meloni and the Visegrád Four (V4) nations—who insisted on unpicking previously negotiated energy text.

Projections and Next Steps

Despite the friction, the timeline for a budget deal has become incredibly tight due to upcoming political pressures.

Country / Leader	Position on Timeline & Budget
António Costa (Council President)	Pushing aggressively for a finalized deal by the end of 2026.
Emmanuel Macron (France)	Warns a deal must be reached this year. He noted that France's 2027 presidential campaign cycle begins in January, making an agreement politically impossible next year.
The "Frugal" Coalition	Demanding Costa propose sweeping new cuts before a newly confirmed special EU budget summit on November 26.

Costa is expected to draft a new compromise negotiating proposal over the coming weeks in an attempt to bridge the gaps before leaders reconvene in November.