The EU's 27 leaders have kicked off their second day of talks in Brussels. On the table, the divisive issue of the next long-term budget, which is splitting EU governments into two opposing camps.

The second day of the EU summit is now underway, with leaders debating the bloc's next seven-year budget, which the European Commission has pencilled at €2 trillion.

Cyprus, the country holding the rotating presidency, has proposed a "moderate" 2% cut, worth €32.8 billion, to the original draft. For countries keen on preserving agriculture and cohesion funds, that is more than enough.

But a group of countries traditionally known as "frugals" and now self-rebranded as "modernisers", say a 2% reduction is nowhere near satisfactory. German Chancellor Friedrich Merz has said the proposal on the table is "clearly too high" and that "the numbers have to go down".

Some EU officials also say that crunch elections in key EU countries such as France and Poland next year means there's a sense of urgency to close a deal before, as a freshly-elected government could torpedo the discssions.

The debate on Friday is expected to see leaders double down on their red lines, demands and conditions, all of which remain deeply entrenched, despite a shared goal of reaching a final deal in December at the very latest. (Euronews, 2026-06-19)