Costa launches “tour des capitales” to unlock EU’s next long-term budget

European Council President António Costa begins a tour of EU capitals on Monday aimed at collecting national priorities and testing the political ground for a deal on the Union’s next Multiannual Financial Framework (MFF). The 2028–2034 budget, currently estimated at around €2 trillion, is the largest and most contested financial package the EU has ever negotiated. Costa has described reaching agreement by the end of 2026 as the year’s overriding priority.

The “tour des capitales” starts in Slovakia and will continue through Central Europe and the Baltic states. Sweden is being skipped for now because of its parliamentary election. Costa plans to meet presidents and prime ministers on their home turf to hear “the priorities of Europe’s leaders and the citizens they represent.” Ireland, which holds the rotating Council presidency in the second half of 2026, is expected to table a revised draft before the October European Council, after which Costa will try to corral the 27 leaders toward consensus.

The exercise comes at a moment of heightened urgency. National elections scheduled for 2027 in several member states risk freezing or further polarising negotiations. Yet the divides remain deep. So-called frugal countries – principally Germany, the Netherlands, Austria, Sweden, Finland and Denmark – want to limit the overall size of the budget and redirect spending toward new priorities such as defence, competitiveness and strategic autonomy. Net beneficiary states and the “Friends of Cohesion” group insist on protecting traditional policies, above all agriculture and regional development funds. The Commission’s ambitious proposal has already been trimmed in successive “negotiating boxes,” but neither side is satisfied.

Against this backdrop, individual capitals are lining up specific claims. Latvia has become the most vocal recent example. Prime Minister Andris Kulbergs is seeking an additional €7 billion from the next MFF — to be channelled through the planned Competitiveness Fund — to offset the military and economic costs of confronting Russia. The sum would cover a large share of Latvia’s projected defence expenditure over the seven-year period and compensate for the collapse in trade that followed the severance of economic ties with Moscow. Riga argues that frontline states are carrying a disproportionate burden for the security of the whole Union, and that a significant portion of its increased defence spending ultimately flows back to Western European arms manufacturers. The request lands in the middle of Latvia’s own election campaign and illustrates the broader pressure from eastern flank countries for greater recognition of their security costs.

Defence and strategic autonomy

Defence and strategic autonomy now sit at the centre of the MFF debate. The Commission has proposed substantially higher EU-level funding for security, the defence industry and space within a new Competitiveness Fund. Parallel instruments such as the Security Action for Europe (SAFE) loan facility and earlier programmes have already begun to mobilise resources, yet many governments insist that the long-term budget itself must reflect the new geopolitical reality. Frugal capitals accept the need for stronger European defence capabilities but resist an overall expansion of the budget or new common borrowing. Eastern and southern member states counter that security cannot be financed simply by cutting cohesion or agricultural spending.

An early agreement remains possible but far from assured. Previous MFF negotiations have routinely stretched well beyond initial deadlines. Costa’s tour is intended to map red lines, identify potential trade-offs and keep political momentum alive before electoral calendars intervene. Whether the exercise produces enough common ground for a deal by December will depend on the willingness of both frugal contributors and net recipients to accept compromises that none currently find ideal. In the meantime, the individual requests – Latvia’s €7 billion claim among them – will test how far the Union is prepared to treat security costs on its eastern frontier as a shared European responsibility rather than a national burden.

A personal interest behind the tour?

Costa’s current mandate as President of the European Council runs until 31 May 2027. He took office on 1 December 2024 for a standard 2.5-year term. Under the Treaty on European Union (Article 15), the President is elected by the European Council (by reinforced qualified majority) for 2.5 years and the term is renewable once.

A decision on whether to renew his mandate for a second term (which would then run until late 2029) is expected to be taken by the European Council sometime before the end of the first term – typically in the months leading up to May 2027. No formal timeline or decision on renewal has been announced yet (as of August 2026).

Costa has faced clear criticism and pushback from several EU heads of state and government, even if he was initially viewed as a consensus-builder. The most prominent recent episode (June 2026) involved outreach to Russia. Costa’s office (via his chief of staff) established contact with Russian officials without broad prior consultation of the member states. This broke years of diplomatic silence and triggered significant discontent:

– Estonian Prime Minister Kristen Michal publicly called the move “misguided,” arguing the EU cannot simultaneously act as a mediator and a strong supporter of Ukraine;

– Lithuanian President Gitanas Nausėda stated it was not the right time to start negotiations with Putin;

– French President Emmanuel Macron and German Chancellor Friedrich Merz were among the most critical behind closed doors. Diplomats reported they viewed the initiative as poorly coordinated or “unprofessional,” with some describing it as an “affront.” Merz reportedly stressed that while Costa represents the EU, he should not act as a mediator.

Diplomats from multiple capitals privately compared the episode to the style of Costa’s predecessor, Charles Michel, who was often accused of overreaching without sufficient consultation.

While Costa still enjoys substantial support and reports in mid-2026 suggested his reappointment for a second term remained likely, these episodes show he does count detractors – or at least leaders who have openly or privately expressed strong dissatisfaction with specific decisions and his method of operating.

Caption: A plane carrying European Council President Antonio Costa arrives at Esenboga Airport ahead of the 2026 NATO Heads of State and Government Summit in Ankara, Turkey, 07 July 2026. The summit will take place on 07 and 08 July, focusing on strengthening defence industrial production and securing long-term military aid for Ukraine. EPA/METIN AKTAS / POOL