{
  "id": 14524310,
  "title": "Macron and Merz hold keys to an EU budget deal — but may be too weak to use them",
  "url": "https://urgent.news/2026/10/14/macron-and-merz-hold-keys-to-an-eu-budget-deal-but-may-be-too-weak-to",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-14T19:52:25.000Z",
  "source": {
    "name": "Politico EU",
    "slug": "politico-eu",
    "url": "https://www.politico.eu/article/france-emmanuel-macron-germany-friedrich-merz-hold-keys-eu-budget-deal/"
  },
  "original_language": "en",
  "account": "As EU leaders convene for a two-day summit in Brussels, Emmanuel Macron and Friedrich Merz find themselves in a precarious position when it comes to reaching a deal on the EU’s upcoming seven-year budget. Both heads of the bloc’s two largest economies hold the keys to breaking the impasse between capitals, which has lingered for months amidst a Germany-led group advocating for a smaller budget and other nations resisting reductions. Siegfried Mureșan, who co-leads the European Parliament’s work on the MFF, emphasized the need for compromise in order to build the budget.\n\nThe overarching challenge is sealing an agreement on the €2 trillion long-term central budget. While both Macron and Merz are not the sole decision-makers, their collaboration would be a significant stride towards consensus. However, with Macron soon to step down and Merz facing domestic pressure, Brussels, Paris, and Berlin officials and diplomats are playing down the likelihood of a Franco-German breakthrough during this week’s summit.\n\nBoth leaders may engage in bilateral conversations, but there are no definite plans for a formal meeting. EU diplomats expect them to utilize the summit to fine-tune their positions. Domestic political fragility makes it unlikely for either leader to yield significant ground, as concessions could be exploited by presidential candidates vying to replace Macron or by far-right and far-left rivals in various EU countries. For instance, France’s Marine Le Pen warned against locking in an agreement before France’s April presidential election and upcoming elections in Spain and Italy.\n\nMeanwhile, Merz must also navigate domestic political challenges, including a humiliating defeat in state elections to the far-right Alternative for Germany party, which makes him wary of any deal that could be perceived as sending more taxpayer money to Brussels. However, Paris and Berlin's positions may not be as divergent as they appear. Both France and Germany require stepping outside their comfort zones to reach a deal. France is pushing for new \"own resources\" like online gambling levies, whereas Germany remains skeptical about whether this will generate sufficient funds.\n\nDespite recent unity demonstrated by Macron and Merz in urging the European Commission to toughen its stance on China, they still failed to reach a major agreement on the EU budget, particularly regarding \"Made in Europe\" rules and the 2035 combustion engine ban. The deal remains elusive as negotiations continue at this week’s summit.",
  "summary": "The French and German leaders face political pressures that limit their room for maneuver on Europe's biggest negotiation.",
  "key_points": [
    "Macron and Merz hold keys to EU budget deal but may be too weak to use them.",
    "Leaders face domestic pressure to avoid concessions during summit.",
    "Both France and Germany need to compromise for a deal on budget and rules."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Der Standard Wirtschaft",
        "title": "Lockerung für \"Verbrenner-Aus\"? So könnte der Deal zwischen Merz und Macron aussehen",
        "url": "https://urgent.news/2026/10/14/lockerung-fur-verbrenner-aus-so-konnte-der-deal-zwischen-merz-und",
        "published": "2026-10-14T15:18:01.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}