BRUSSELS — EU leaders will go back to the drawing board in November as they race to finalize a deal on the bloc’s next seven-year budget by the end of the year.

During the first day of a two-day summit in Brussels on Thursday, European Council President António Costa announced he was convening an additional gathering on Nov. 26 in a bid to overcome disagreements and lay the ground for a final deal in December. To bring the sides closer to an agreement, he will present new budget figures before the meeting, according to an EU official, who was granted anonymity to discuss the confidential planning.

Costa is pressing leaders to finalize negotiations by the end of the year — before elections in France, Italy and Poland in 2027 threaten to derail the talks.

In a speech to the leaders, Costa warned that going past the end-of-year deadline will delay EU payments to farmers and researchers past Jan. 1, 2028, when the new budget is scheduled to come into force.

If leaders fail to reach a deal in December, the electoral calendar might push an agreement to May or even October 2027, Costa warned leaders in his concluding remarks, according to two EU diplomats briefed on the discussions.

Pressure on governments

Costa’s plan received a major boost on Thursday from French President Emmanuel Macron, who told fellow leaders that he won’t have a political mandate to sign a deal close to the French presidential elections in April 2027.

This is a major reversal for France, which has previously been unwilling to commit to the end-of-year deadline.

Macron’s words put more pressure on governments to advance the talks over the coming weeks — although some cast doubt on his good intentions.

“There are so many elections next year. [French far-right leader Marine] Le Pen herself [said] it’s undemocratic if we were now to agree,” said one EU diplomat.

Just hours before the leaders’ gathering, Le Pen renewed calls to halve France’s contributions to the EU budget if she wins the presidential elections next year.

She said that rushing the budget agreement before the French elections would be “a democratic scandal.”

The new frugal

Costa is stuck between messy domestic politics across Europe and hardening stances among the EU’s 27 leaders.

The so-called frugal EU countries pushing for major budget cuts — Germany, Netherlands, Austria, Sweden, Denmark and Finland — have publicly said that an Irish proposal envisioning €159 billion cuts doesn’t go far enough.

On Thursday, the six hardliners were joined by Belgian Prime Minister Bart De Wever, who joked in a press conference after the summit that “I’m married to a Dutch person so I’m very frugal also in my personal life.”

However, behind closed doors the budget hardliners employed a more conciliatory tone.

German Chancellor Friedrich Merz — the unofficial leader of the frugal camp — said that the Irish proposal has achieved progress despite reductions still being needed, said two EU diplomats briefed on the discussions.

He pointed to EU payouts to poorer regions, as opposed to farmer’s subsidies, as an avenue for cuts.

On the other side of the spectrum, Spanish Socialist Prime Minister Pedro Sánchez — who will try to cling on to power in an election on Nov. 29 — insisted that the budget is way too small.

“It is a distribution of misery,” he told fellow leaders during the discussions, according to the diplomats. He was joined by Italy’s right-wing Prime Minister Giorgia Meloni — an ideological foe on most issues, but an ally of sorts in the budget battle. She insisted that no further cuts to the budget will be accepted.

To bring sides together closer to a deal, Costa promised to advance progress on EU-wide taxes, or own resources, to finance the next seven-year budget and reduce national contributions.  

He will explore the European Parliament’s proposed taxes on crypto firms, online gambling and tech giants as well as a Greek idea to funnel future national sales of 6G mobile spectrum to the EU budget.

But given the level of opposition, getting EU countries to agree to any of these options will no be no mean feat.

“It is time to be realistic and work on what is plausible and reasonable, instead of wishful thinking,” said another EU diplomat.

Ukraine’s strikes on data centers inside Russia aimed to disrupt military planning and communication services. There were also reports of another kind of disruption: to customers waiting for their dinner from food-delivery apps.

Kyiv’s drone strikes on three Yandex data centers in Sasovo, Kaluga and Vladimir saw delays and interruptions for thousands of businesses and households that rely on Yandex’s cloud infrastructure, including e-commerce, digital payment platforms and apps of food delivery and car services. Ukrainian drones on Wednesday targeted a major Sberbank data center in Russia’s Saratov region, though a senior company executive said it hadn’t affected operations.

After the strikes on Russian data centers, Kyiv noted that Moscow has already repeatedly targeted its digital infrastructure. “Ukrainians wanted to show Russians that two can play this game,” a senior official familiar with the operation told POLITICO, granted anonymity to discuss sensitive matters.

The attacks and counter-attacks point to a new frontline in war: the infrastructure powering the digital economy.

The attacks on the buildings that supply compute power are akin to striking a power plant supplying the electricity, heating and fuel that both militaries and civilians depend on. It may weaken an enemy’s war effort but can also bring everyday life to a standstill.

Experts say the cost of rebuilding in Russia will be particularly high as the centers require scarce materials that must be imported. “Obtaining a large amount of equipment to replace what was destroyed is not going to be easy,” said Oleg Shakirov, a cyber policy and international security researcher, noting that most hardware needs to be imported and that is complicated by high global demand and sanctions on Russia.

“To be honest, no one really knows what’s the actual damage. Since two data centers are still offline, we can assume that it’s significant,” said Shakirov.

Joseph Jarnecki, a senior research fellow at the Royal United Services Institute, warned that normalizing strikes to data centers could have a new set of dangerous consequences.

“These strikes likely breach International Humanitarian Law and it’s a big risk when global populations increasingly rely on digital services,” he told POLITICO.

When servers become targets

Data centers have entered the crosshairs of other recent armed conflicts. During the U.S.-Israeli conflict with Iran earlier this year, drone strikes hit three Amazon Web Services (AWS) facilities in the United Arab Emirates and Bahrain.

Since data centers can serve civilian and military purposes simultaneously, the legal status of targeting them is far from straightforward.

Kubo Mačák, an expert on international humanitarian law, said a data center must meet two conditions to qualify as a military objective under the Geneva Conventions: it must make an effective contribution to military operations and destroying it must offer a “definite military advantage.”

“If you know that they are storing military intelligence or that they’re using the data center to power military artificial intelligence tools,” Mačák said, there could be grounds to consider it a military objective.

Following the most recent strikes of the Yandex data centers, users on social media platform X reported a sudden drop in automated bot activity, including from accounts associated with pro-Russian, pro-Trump and Germany’s far-right Alternative for Germany (AfD) narratives.

Ukrainian President Volodymyr Zelenskyy seized on the reports to boast that the strikes had made social media less toxic, even as independent researchers and national research institutes found no evidence they specifically disrupted any Russian disinformation campaigns.

Mačák said that even if a data center is being used to “let’s say, run some trolls or these bot farms to interfere with elections abroad … that would not be sufficient.” In other words, hosting propaganda bots does not, by itself, make a data center a lawful military target.

The dual-use quandary has often focused on the targeting of energy infrastructure, which has been frequent in the Russia-Ukraine war. On Saturday, U.S. President Donald Trump urged Ukraine to stop striking Russian oil refineries, blaming the attacks for rising fuel prices. He has since called for both sides to halt attacks on energy infrastructure, although the existence of any ceasefire agreement remains disputed.

As data centers become increasingly central to national economies, they will become more consequential targets. A senior NATO official granted anonymity to discuss the matter told POLITICO that data centers are already considered potential targets and that the alliance is factoring their vulnerability into its planning.

NATO allies recognize that their data centers could come under attack in a conflict, the official said: “We would get it in a fight.”

Veronika Melkozerova in Kyiv contributed to this report.

BRUSSELS ― Political pressure is leaving Emmanuel Macron and Friedrich Merz poorly placed to break the deadlock over the EU’s next seven-year budget.

As EU leaders gather for a two-day summit in Brussels from Thursday, the heads of the bloc’s two largest countries hold the keys to breaking the impasse between capitals that has persisted for months, as a Germany-led group advocating a smaller budget clashes with those like France which are resisting reductions.

“Delays and persisting divisions in the Council [representing EU governments] are worrying,” said Siegfried Mureșan, co-leading the European Parliament’s work on the MFF, the multiannual financial framework. “The EU budget can only be built through compromise … The faster we adopt the budget, the faster we can implement it and become more competitive, safer, help farmers and researchers and protect our borders and cyberspace.”

Sealing agreement on the EU’s long-term central budget, worth approximately €2 trillion, is the biggest challenge over the next few months facing leaders, all of whom must sign up to the final numbers. While it isn’t just up to Macron and Merz, getting the chiefs of the bloc’s two most powerful countries to overcome their differences would be a massive step in making all the pieces of the jigsaw slot into place.

But with Macron soon to leave office and Merz under severe pressure domestically, officials and diplomats in Brussels, Paris, and Berlin are playing down hopes of a Franco-German breakthrough this week.

“If the French and German leaders come hand in hand, I think that could change the game,” an EU diplomat, granted anonymity to speak frankly, said. “You need [Italian Prime Minister Giorgia] Meloni and [Polish Prime Minister Donald] Tusk, but it starts with Merz and Macron.”

While Merz and Macron may talk bilaterally during the summit, according to an Elysée official, there were no firm plans for a more formal sit-down, two EU diplomats said, adding they were expecting them to use the two-day meeting to hash out positions.

Domestic political weakness makes both leaders less likely to yield ground, three EU diplomats said.

Backfiring

For the French president, who leaves office next year, the fear is that making big concessions — like accepting cuts demanded by Berlin — could be weaponized by presidential candidates vying to replace him.

“Macron should not appear too conciliatory” in budget talks, said an ally of the French president. “It would backfire in the presidential campaign.”

Indeed, Macron may be wary of striking a deal that could lead to attacks from far-right leader Marine Le Pen or far-left rival Jean-Luc Mélenchon, both of whom argue that France receives too little value for its contributions to the EU pot.

During a press conference in Brussels on Wednesday evening, Le Pen accused negotiators of speeding up talks as “an attempt to stifle future democratic choices before they even take place” — effectively warning Macron against locking in an agreement before France’s April presidential election and votes in other major EU countries, such as Spain, which goes to the polls next month, and Italy, which is due to hold a poll next year.

“All this is not serious,” Le Pen told reporters on the 26th floor of The Hotel in Brussels.

It’s complicated

Merz faces similar political pressures.

Following humiliating state election defeats to the far-right Alternative for Germany party, the Chancellor is wary of concessions that could be framed as sending more taxpayer money to Brussels. Berlin prefers no deal at all to one that increases the overall budget, Merz said.

But Paris and Berlin’s positions may not be as far apart as public statements suggest.

“It’s complicated because France and Germany both need to step outside of their comfort zone,” said the Macron ally. “But it will end with a deal between France and Germany,”

France’s Europe minister Benjamin Haddad told reporters on Tuesday that discussions should focus on raising money via taxes, or “own resources” as they’re known in the EU —such as online gambling levies—rather than “massive cuts.”

However, Paris also wants to “stabilize national contributions” ― in other words, keep its own payments level.

Berlin was “open to examine new own resources, but we are more skeptical than the French that it will generate enough money,” a German official said.

France is betting that when push comes to shove, Merz will give in to pressure from other countries — and German captains of industry — to abandon his demands for far-reaching cuts.

“I see that there is also a real debate in Germany as well on the fact of having a position that would only be focused on cuts to the detriment of future policies,” an Elysée official said Wednesday. This week, Germany’s industrial lobby BDI and top industry groups urged their government to defend a more ambitious EU budget.

Macron and Merz showed unity earlier this month by jointly urging the European Commission to toughen its stance on China. But they still struggle to agree on another major deal—first reported by POLITICO in July—where Berlin accepts stronger “Made in Europe” rules in exchange for France backing relaxed car emission targets and the 2035 combustion engine ban.

EU Industry chief Stéphane Séjourné told POLITICO on Tuesday he supported the deal to finalize both files. Macron recently called the agreement “imminent,” suggesting progress depended on German coalition talks. But their failure to present an agreement at this week’s Paris car show confirms Paris and Berlin still disagree on terms, with the Elysée confirming negotiations remain ongoing.

The NPCI, which operates the UPI network, said it was postponing the planned October 15 rollout of the 0.4% fee due to the festive shopping season.

MADRID — Spanish Prime Minister Pedro Sánchez has finally done something the far right approves of — calling a snap election on Nov. 29 that the anti-immigrant Vox party is hailing as “Spain’s last chance to be Spain again.”

Polling third in the race, Vox is Spain’s leading nationalist, euroskeptic force and it sees next month’s contest as its prime opportunity to remold the country after eight years of Sánchez’s socialist premiership by getting its people into top ministerial jobs.

Party leader Santiago Abascal greeted Monday’s election announcement as “excellent news.” His delight is hardly surprising given that polls suggest Vox is on track to make the biggest gains of any major party.

While the center-right People’s Party is expected to come first — with about 33% of the vote, according to POLITICO’s Poll of Polls — it will almost certainly have to team up with Vox, which commands support of about 18%, to build a stable coalition.

Abascal will then be able to demand the inclusion of key elements of Vox’s agenda as its price for that partnership. Its goals include deportations of undocumented migrants, a benefits preference for Spaniards over foreign nationals, slashing EU health and safety rules in the farming sector and rolling back support for gender equality and the LGBTQ+ community.

Vox secured 33 of the 350 seats in Congress in 2023, but is now set to double that. Under the PP’s coalition leadership, it should be able to form part of a comfortable majority.

“This time round, Vox is much stronger,” José Antonio Fúster, spokesperson for the party and a member of the Madrid regional parliament, said. “We are going into a very important election, not so much for us, as for Spaniards … This is the last hope for Spain to be Spain again.”

Fúster would not be drawn on which ministries his party has set its sights on, warning against “selling the bearskin before it has been hunted.”

Pointing to talks with the PP in recent months in four regions where the two parties now govern in coalition, he said the shaping of policy was being prioritized ahead of institutional power. “That is the last thing we negotiate because it is the least important,” he said.

Pet portfolios

In August, Vox MEP Jorge Buxadé told POLITICO that forming part of the government was not the only option open to his party, but that in a hypothetical coalition with the PP, his party would seek a number of ministries “in proportion to our vote share.”

That would amount to a significant percentage. If current polls translate into results in November, Vox would be in a position to claim about a third of ministerial posts.

Analysts expect Vox to press for portfolios that focus on its pet policies, such as agriculture, domestic policy, immigration and industry. The culture and education portfolios could also be of interest to the party, given their relevance in the hard right’s campaign against so-called wokeism.

The regions where the PP and Vox currently govern together — Andalusia, Aragón, Castile and León, and Extremadura — offer clues: The government departments that Vox controls are mainly linked to agriculture, welfare benefits and the family.

The party is heading into the election campaign espousing three main ideas: the concept of “national priority” — ensuring that Spaniards have access to public services and benefits ahead of foreign nationals — a clampdown on immigration and broad deregulation.

Although Vox’s rise to prominence was driven by its fierce stance against Catalan nationalism nearly a decade ago, that debate has faded from the political arena. Now, its focus is, like its European far-right counterparts, more firmly on immigration-related matters.

“Before, Vox talked about immigration, but it wasn’t the nuclear issue it has become,” said Guillermo Fernández Vázquez, a political scientist at Carlos III University and author of a book about the European far right. “Now, when Vox talks about social security payments, it talks about immigration; when it talks about the economy, it talks about immigration. Immigration is the issue that dictates everything.”

Vox also subscribes to the “remigration” policy being touted by many far-right parties, under which undocumented migrants and those who commit crimes would be deported. The PP has appeared to respond to Vox’s hard line by toughening its own stance, calling for the expulsion of foreign criminals and opposing a government migrant legalization program.

In each of the regions where the two parties are in coalition, Vox has ensured that its senior partner agreed to formally include the national priority principle in their governing agreement.

“But when it comes to national priority, the PP has added the caveat that it has to be implemented in line with the law,” said Miguel González, a journalist at the El País daily newspaper and author of a book about Vox. Legislation prevents discrimination against foreign nationals when it comes to accessing public benefits and services, meaning the policy is currently little more than symbolic in those regions. 

“In reality, in order to implement this properly, you’d have to change the immigration law,” González added.

Vox is eyeing an overhaul of that legislation to make it a workable policy.

“It’s very possible to change laws that are bad for Spaniards, so we have to roll them back and introduce new laws, making sure that Spaniards are not last in line,” Fúster said.

Deregulation nation

Deregulation also offers a platform from which to attack EU health-and-safety norms that are reviled by the farming sector, one of Vox’s main voter bases.

Fúster accepted that this could lead to clashes with the European Commission, but insisted that pressure from what he described as a rising tide of European parties sharing Vox’s values would “make sure that Brussels returns to the path of common sense.”

PP leader Alberto Núñez Feijóo has criticized phytosanitary restrictions on farmers but has shown little appetite for conflict with European institutions.

In social policy, González said Vox might use the broader notion of deregulation to dismantle funding for gender equality and LGBTQ+ departments and projects, as it has done on a local level. Fúster was reluctant to be drawn on this: “We believe in the equality of Spaniards,” he said. “We don’t believe that anyone should have privileges above others.”

Fernández Vázquez of Carlos III University said that the origins of Vox suggest a bumpy ride for the PP. Vox would be the first far-right party to enter government in half a century since the death of Francisco Franco in 1975 — and there would likely be clashes.

The far-right party formed in 2013 as a breakaway from the conservatives in frustration at what its founders saw as the pusillanimity of the PP in the face of Catalan separatism. 

“I think the relationship between Vox and PP [in government] will be a bad one,” the researcher said. “Abascal and his colleagues are going to enjoy showing up Feijóo whenever they can, portraying him as lukewarm and weak.”

Fúster accepted “it could be a difficult relationship,” adding that the PP “don’t see things the way we do and we don’t share their vision.”

“We’re not willing to make concessions, we’re willing to have a frank, open and reasonable negotiation.”

But for now, the priority is simply to remove the Socialists. In his traditionally combative style, Abascal insisted the election was a chance to hold on to “the peace, prosperity and freedom that a mafioso government wants to snatch from us forever.”

Max Griera contributed to this article.

Fifty European Union lawmakers, including 46 women, have been the targets of deepfake pornography, according to new research released Monday.

The number of women targeted by deepfake pornography — when generative AI is used to create sexually explicit depictions of people, often without their consent — means roughly one in six female members of the European Parliament have been affected, the report by Agora Digitale Transformation, a Germany-based civil society group, said.

The European Union is banning AI-powered nudifier apps on Dec. 2, and is also investigating similar use of Grok on the social media platform X.

A cross-party group of 119 MEPs called for effective enforcement of the ban and prompt resolution of the investigation into Grok, in a Sept. 30 letter sent to Commission President Ursula von der Leyen, the head of the Council of the EU Antonio Costa, Parliament President Roberta Metsola, EU tech chief Henna Virkkunen and Commissioner Hadja Lalhbib. The signatories included leaders of the liberal Renew, the socialists, and The Left: Iratxe Garcia Pérez, Valérie Hayer, and Manon Aubry, respectively.

“There can’t be any loopholes or delays” in enforcing the ban, Austrian Greens MEP Lena Schilling, who also signed the letter, told reporters on Monday.

Politicians can’t opt out of having their likeness online, so it’s hard for them to avoid being targeted by AI nudifiers, said Benjamin Shultz, who co-authored the report.

Shultz said that to enforce the ban, the Commission needs to hold accountable all entities that, at times, inadvertently enable the nudifier industry. That also includes payment processors and domain registrars. The report said the Commission should also look into how to get search engines to de-index AI nudifier websites, meaning removing them from their databases.