European news of the week, 5 – 11 Oct 2026 — 2028–2034 EU budget: proposed cut

European News of the Week

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Budget

2028–2034 EU budget: proposed cut

Facing pressure from the so-called "frugal" states, the Irish Presidency of the Council of the EU is proposing an 8% cut (-€160 billion) to the €2 trillion proposed by the Commission. This reduction aims to unblock negotiations and seal a transitional agreement by the end of 2026. The budget would drop to €1.84 trillion over 7 years, or around €263 billion per year—which remains 30% higher than the 2021–2027 budget.

Source : Financial Times, Reuters

Trade

Interim EU-China trade deal

The EU and China have concluded a transitional trade agreement to de-escalate the tariff war. Beijing agrees to reduce its exports of electric and plug-in hybrid vehicles to the European market by up to 50%, in exchange for targeted tariff cuts. The deal protects the European automotive industry while safeguarding other key sectors from economic retaliation.

Source : AP News

EU programmes

European Parliament: adoption of the AGILE programme

Parliament has approved the interinstitutional agreement on AGILE (Programme for Agile and Rapid Defence Innovation), backed by €115M. This mechanism accelerates funding (granted within 4 months) and cuts red tape for SMEs and startups developing breakthrough defence technologies (AI, quantum, cyber). The scheme will enter into force in early 2027 to strengthen strategic autonomy.

Source : Agence Europe

Elections

Latvian parliamentary election: victory for Andris Kulbergs

The United List (AS), party of centrist Prime Minister Andris Kulbergs, won the parliamentary election with 35.29% of the vote. This success marginalises populist groups and ensures the stability of a pro-EU and pro-NATO government in Riga. The victory guarantees the continuity of military support for Ukraine and the consolidation of security on the European Union's eastern flank.

Source : Le Monde

External relations

UK: growing pressure to rejoin the EU

A national petition to rejoin the EU has exceeded 100,000 signatures, demanding a debate in Parliament. It supports the 10-year plan by the European Movement think tank for accession by 2036. While 57% of Britons support rejoining to reverse the cost of Brexit (-4% to -8% of GDP), Prime Minister Andy Burnham advocates stronger cooperation with Brussels.

Source : The Independent, Express

Elections

Presidential election in Bosnia and Herzegovina: record low turnout and status quo

The elections on 4 October 2026 saw turnout drop to a record low of 42%. The collective presidency—the tripartite executive stemming from the 1995 Dayton Agreement—maintains its balance: Denis Bećirović (Bosniak) and Željka Cvijanović (Serb) were re-elected, while Darijana Filipović (HDZ) won the Croat seat. The dominance of the traditional ethnic trio (SDA, SNSD, HDZ) in Parliament signals difficult negotiations ahead.

Source : Balkan Insight