EU summit in Brussels to tackle energy prices, 2028-2034 budget and Ukraine

Agenda in Brussels

The European Council opens in Brussels at 11:00 Greek time on 15 October and runs until Friday, 16 October. Energy prices top the agenda, with leaders expected to weigh further measures for households and businesses as the crisis in the Middle East feeds into international markets. The new seven-year EU budget for 2028-2034 and support for Ukraine are also on the table. In a letter to leaders, European Council President António Costa calls for "immediate action" and asks for guidance to the European Commission on "targeted and temporary measures", while the push to cut Europe's reliance on fossil fuels continues.

Proposals on the table

Several options have been put forward. A windfall tax on the extra profits of energy companies is backed by Germany, Italy, Spain, Poland, Austria and Portugal. Greece and Italy want more fiscal room to finance temporary support, and tax options include cutting VAT and special excise duties on energy. Italy and Czechia have asked for temporary changes to the EU Emissions Trading System (ETS). The European Commission appears reluctant to back a windfall tax at EU level, stressing fiscal prudence so that public finances are not strained further and market confidence holds.

Mitsotakis's expected position

Greek Prime Minister Kyriakos Mitsotakis is expected to say that lowering energy prices must come first, through targeted and temporary support for households and small and medium-sized businesses ahead of a difficult winter, while staying within fiscal stability. He will press for completing the European energy market and cross-border energy interconnections, and argue that medium-term measures are also needed. He is expected to say the green transition remains a long-term goal and that Europe must rethink its energy security assumptions, including whether it can carry high energy costs for industry, the green transition and fiscal discipline at once during high inflation. On competitiveness, he will call for implementing the Letta and Draghi reports, saying progress on simplifying legislation and on the "28th regime" is not satisfactory. Talks on the Multiannual Financial Framework now run on a revised Negobox prepared by the Irish Presidency, and Athens has set out its position clearly.

Domestic measures and a preview of the message

On 14 October, Mitsotakis spoke at the opening of an autonomous energy storage unit run by Metlen Energy & Metals and the Karatzis Group in Nea Karyes, near Larissa. He warned that escalation in the Strait of Hormuz and Ukraine would push up oil and gas prices and inflation, raising the cost of living.

“This winter will be difficult.”

Mitsotakis said the government had raised the heating allowance by 30%, to as much as 1,200 euros, for 1.2 million households, and that heating oil at the pump is expected to open at around 1.55 euros. He described the measures as fair and costed, to be reviewed as international developments unfold. He also dismissed simple appeals to switch off lights and cut petrol use as insufficient. He will take three directions to Brussels: fiscal flexibility to support households and businesses, support for European industry and support for shipping.

“No national regulation can deal with an international attack, and that will be my message tomorrow at the European Council.”

Gas exploration and what follows

Mitsotakis also said the government is moving ahead with the first exploratory natural gas drilling in the Ionian, scheduled for the second quarter of 2027. He argued that refineries should be backed to strengthen the supply chain, and that fossil fuels will keep a significant role in the meantime. The summit concludes on Friday, 16 October, after two days of negotiations in Brussels.