As European Council enters second day of talks...>

EU: As European Council enters second day of talks surrounding the next LT

budget (multiannual financial framework, MFF), the prospect of an agreement

seems slim.

- Danish PM Mette Frederiksen said in comments this morning that she does not

expect a deal this weekend, and another summit would be required in March. 

- Next MFF will cover the period 2021-27, placing significant impetus on coming

up with agreement soon. 

- It will be the first MFF without UK contributions (EUR75bn over 7 years). Many

countries seeking to maintain their levels of funding, but from a smaller pot,

resulting in an impasse. 

- Main groups are the 'frugals' (Netherlands, Austria, Sweden, Denmark), seeking

to limit budget to 1.0% of EU GNI, and the 'Friends of Cohesion' (net recipients

from southern and eastern Europe), who argue Council Pres. Charles Michel's

budget proposal equal to 1.074% of is insufficient. They support Commission's

proposed figure of 1.1% of GNI.