The European Union is preparing for a significant fiscal and political transition as member states begin negotiations for the 2028–2034 multiannual budget. During the July 2026 General Affairs Council meeting in Brussels, representatives reviewed the framework for future spending, with a specific focus on maintaining cohesion policy, agricultural support, and regional economic convergence. The discussions also saw progress in the EU enlargement process, with new negotiation clusters opened for Ukraine, Moldova, Montenegro, and Albania.
Shaping the 2028–2034 EU Budget
At the center of the fiscal debate is a declaration signed by 16 member states, including Latvia, which advocates for the continued prioritization of cohesion, agriculture, and fisheries policies. According to the Latvian Ministry of Foreign Affairs, parliamentary secretary Artjoms Uršuļskis emphasized that these sectors are essential for fostering economic growth and narrowing the prosperity gap between member states.
This coalition of 16 nations—the “Friends of Cohesion”—is positioning itself to ensure that the next long-term budget does not disproportionately shift funds away from structural development. The goal is to secure a budget that balances the EU’s new security requirements with the foundational need for regional economic stability.
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Progress on EU Enlargement and Negotiation Clusters
Parallel to budget talks, the EU held four Intergovernmental Conferences to advance the accession paths of candidate countries. The process reached a milestone as the 6th cluster, covering “External Relations,” was officially opened for both Ukraine and Moldova.
Other candidate countries also saw specific chapters close, signaling technical progress in their alignment with EU standards:
- Montenegro: Successfully closed Chapter 8 (Competition Policy) and Chapter 29 (Customs Union).
- Albania: Concluded negotiations on Chapter 25 (Science and Research), Chapter 26 (Education and Culture), and Chapter 30 (External Relations).
Reducing Administrative Burdens and Regulatory Reform
Beyond fiscal and expansionary goals, the Council addressed the ongoing need for regulatory simplification. Artjoms Uršuļskis expressed support for initiatives led by the European Commission and Commissioner Valdis Dombrovskis aimed at cutting red tape.
The objective is to improve the competitiveness of European businesses by streamlining complex legal acts. By reducing the administrative burden, member states hope to allow small and medium-sized enterprises (SMEs) to operate more efficiently within the single market, a move supported by the Latvian government as a key driver for long-term economic resilience.
Pro Tip:
For businesses operating across EU borders, monitoring the progress of the “Regulatory Simplification” initiative is vital. Updates from the Commission on these files often signal upcoming changes to reporting requirements and compliance standards.
Strengthening the Rule of Law Dialogue
The Council also formally approved conclusions regarding the annual rule of law dialogue. This mechanism is designed to facilitate a structured exchange of best practices among member states. According to the official report from the meeting, the dialogue serves as a political forum to address democratic standards and judicial independence, ensuring that all member states remain aligned with the EU’s core values.
Frequently Asked Questions
What is the “Friends of Cohesion” group?
It is a coalition of 16 EU member states, including Latvia, that advocates for the importance of cohesion, agricultural, and fisheries policies in the EU’s long-term budget to ensure balanced economic growth across all regions.
Which countries are currently advancing in EU accession?
Ukraine and Moldova have recently opened the 6th cluster (External Relations) of negotiations, while Montenegro and Albania have successfully closed multiple chapters related to competition, customs, and research.
What is the main goal of the EU’s regulatory simplification?
Led by the European Commission, the goal is to reduce the administrative burden on businesses to increase the overall competitiveness of the European Union in a global market.
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