World
The truth behind the €64.6-billion budget deal agreed by EU leaders
The European Union might soon add an additional €64.5 billion to its common budget. But it comes with fine print.
The top-up was for months the object of fierce bargaining among member states, each of whom, mindful of the upcoming elections to the European Parliament, pushed hard to see their wish list come true.
The negotiations kicked off in June, soon after the European Commission unveiled its proposal, and culminated in an extraordinary summit on 1 February, where Viktor Orbán, under tremendous pressure from his fellow leaders, lifted his monthlong veto.
“We had certainly some difficult choices to make, but we had a very good result,” European Commission President Ursula von der Leyen said after the meeting.
Once the gridlock broke, a new figure emerged: the bloc’s budget for 2021-2027, worth €2,018 billion in current prices (including €806.9 billion for the COVID-19 recovery fund), will be given an additional €64.6 billion until the remainder of the period.
The political deal is a considerable downgrade from the €98.8 billion top-up originally envisioned by the Commission. The executive argued the public coffers had been exhausted by the economic shockwaves of the pandemic, Russia’s invasion of Ukraine, the energy crisis, record-breaking inflation and devastating natural disasters, leaving the budget deprived of financial flexibility to react to unforeseen events.
But from the very onset, the €98.8-billion draft was met with strong resistance from member states, who would have been compelled to provide more than €65 billion in brand-new contributions. Rising interest rates, sluggish growth and diminishing revenues made the idea of writing such a cheque to Brussels all the more intolerable.
Diplomats haggled hard over how to cut down the fresh money to the bare minimum, playing a game of mix-and-match to plug the gaps.
So what’s new and what’s old in the budget top-up? Let’s break down the numbers.
Ukraine Facility: €50 billion
Boosting aid for Ukraine is the raison d’être of the revised budget. In fact, it was the only envelope that leaders left intact.
Under the agreement, the EU will establish the Ukraine Facility to provide the war-torn nation with €50 billion between 2024 and 2027 to keep its economy afloat and sustain essential services, such as healthcare, education and social protection.
The pot will combine €17 billion in non-repayable grants and €33 billion in low-interest loans, meaning member states will only subsidise the former. The money for the loans will be borrowed by the Commission on the markets and later repaid by Ukraine.
Brussels will roll out the Facility in gradual payments to guarantee reliable and predictable financing. In return, Kyiv will be asked to carry out structural reforms and investments to improve public administration, good governance, the rule of law and the fight against corruption and fraud – all of which can help the country advance its EU membership bid.
In a small concession to Viktor Orbán, the only leader who opposed the Ukraine aid, leaders will hold a debate every year to assess the Facility’s implementation, but this high-level discussion will not be subject to a vote (or possible veto). “If needed,” the deal says, leaders might invite the Commission to review the package in two years.
If the co-legislators agree swiftly on the regulation that underpins the Facility, Brussels will send Kyiv the first tranche in early March.
Migration management: €9.6 billion
This envelope survived the negotiations almost unscathed and it’s easy to see why: migration management is a key priority shared by all countries, particularly those in Southern Europe who bear the brunt of irregular arrivals.
The Commission originally asked for €12.5 billion to cover expenses on border control, relations with the Western Balkans, and the hosting of millions of Syrian refugees in Turkey, Syria, Jordan and Lebanon. The executive said the extra money was needed to realise the ambitions of the New Pact on Migration and Asylum, the holistic reform of the bloc’s migration policy that is nearing the finish line.
Leaders mostly agreed and granted €9.6 billion. “Migration is a European challenge that requires a European response,” they said in the deal.
New technologies: €1.5 billion
The EU is intent on being a leading player in the cutthroat race for cutting-edge technologies. For that, it needs money – a lot of money.
ADVERTISEMENTThe Commission – fulfilling a grand promise made by President Ursula von der Leyen – designed the Strategic Technologies for Europe Platform (STEP) to finance avant-garde projects and promote EU-made high-tech. STEP was designed to help all member states, from the richest to the poorest, access much-needed liquidity in equal conditions.
Von der Leyen initially asked €10 billion for STEP to reinforce ongoing programmes like InvestEU and the Innovation Fund. But leaders shot down the idea and allocated only a meagre fraction: €1.5 billion to prop up the European Defence Fund (EDF).
Unforeseen crises: €3.5 billion
Since the early days of 2020, the bloc has been engulfed in back-to-back crises. From a lethal airborne disease to floods and fires that wrought untold havoc, Brussels has had a hard time adapting its tight budget to a ballooning list of expenses.
In its original proposal, the Commission requested €2.5 billion to bolster the Solidarity and Emergency Aid Reserve, which is triggered to deal with major natural disasters, and €3 billion for the Flexibility Instrument, which, as its name suggests, can be used to respond to any sort of critical situation.
Despite the worsening effects of climate change and a strong diplomatic push from Greece, a country badly hit by wildfires, leaders did not go all the way: their deal earmarks €1.5 billion for emergency aid and €2 billion for the Flexibility Instrument.
ADVERTISEMENTInterest payments: zero
As a result of the aforementioned crises, the EU had to press the pedal to the metal on its joint borrowing, most notably to build the COVID-19 recovery fund.
The €800-billion plan, which will be rolled out until 2026, comes with a considerable bill of interest payments, which drastically swelled as inflation hit double digits and the European Central Bank retaliated with consecutive rate hikes.
Facing a lofty invoice, the Commission pleaded with member states to add €18.9 billion to the budget review, an amount that immediately raised eyebrows. (The figure to cover overrun costs is variable and is now estimated at €15 billion.)
In the end, leaders opted for a three-step “cascade mechanism.” First, money will come from the existing provisions within the recovery fund. If this is not enough, Brussels will draw funds from programmes that are underperforming and the Flexibility Instrument. If this is still not enough, the third step will kick in and create an instrument financed by “de-commitments,” financial envelopes that were unspent or cancelled.
Only when all of this has failed will the cascade hit leaders as the Commission will be entitled to ask member states to provide direct contributions.
ADVERTISEMENTRedeployments: €10.6 billion
All the numbers listed above make a total of €64.6 billion but there’s a catch: countries will only cough up €21 billion. How is it possible?
Besides the €33 billion in loans from Ukraine, which involves the Commission and Kyiv, member states decided to shift €10.6 billion from ongoing EU initiatives: €4.6 billion from Global Europe, €2.1 billion from Horizon Europe, €1.3 billion from assistance to displaced workers, €1.1 billion from agriculture and cohesion funds, €1 billion from EU4Health and €0.6 from a special reserve to cushion Brexit disruption.
Speaking on condition of anonymity, a senior Commission official said the overnight cuts to Horizon Europe, the bloc’s flagship research programme, and EU4Health were unfortunate and “difficult to swallow.”
“At this point in time, it’s impossible for us to really tell you what this will mean in practice,” the official said about the potential effects of the €10.6-billion redeployment push.
In the case of EU4Health, the chop represents about 27% of the money left in the envelope, established less than four years ago in response to the pandemic. The demanded changes to both Horizon and EU4Health are likely to enrage the European Parliament, which needs to co-approve the budget review.
ADVERTISEMENT“This is something that is not easy,” the senior official added. But “we will religiously follow what the legislators decide.”
World
With US unleashing attacks, Iranian official threatens that the Islamic Republic will deliver a ‘hard slap’
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An Iranian official warned that the Islamic Republic will deliver a “hard slap” while another blatantly threatened the U.S. that “if you strike, you’ll get hit,” according to automatic translations from the two men’s Persian-language posts on X.
Ebrahim Rezaei, whose profile on the social media platform indicates that he is a representative in Iran’s Parliament and the spokesperson for the National Security and Foreign Policy Commission, wrote in a post on X, “The martyred Khamenei taught us not to fear America and showed that ‘falsehood will perish.’ Await the hard slap from the Iranians.”
The speaker of Iran’s Parliament, Mohammad Bagher Ghalibaf, warned, “America still hasn’t learned that bullying and breaking promises are no longer cost-free. Let me put it plainly: if you strike, you’ll get hit. Don’t flail around pointlessly, or you’ll sink even deeper: the Strait of Hormuz will only open with ‘Iranian arrangements,’ not American threats.”
Both of the men issued their posts on Wednesday after U.S. Central Command (CENTCOM) announced more strikes against Iran.
“At the direction of the Commander in Chief, U.S. Central Command forces have started conducting additional strikes against Iran to further degrade their ability to threaten freedom of navigation in the Strait of Hormuz. The United States is holding Iran accountable for recent unjustified aggression against commercial shipping and civilian crews freely navigating a vital international waterway,” CENTCOM had noted in a post on X.
TRUMP SAYS IRAN CEASEFIRE DEAL IS ‘OVER’ AFTER NEW ROUND OF STRIKES
People gather at the Imam Khomeini Grand Mosalla for a farewell ceremony for Iran’s late Ayatollah Ali Khamenei on July 4, 2026, in Tehran, Iran. (Majid Saeedi/Getty Images)
The U.S. military later provided more information about the attacks.
“U.S. Central Command (CENTCOM) forces completed an additional round of strikes against Iran, July 8, to further degrade Iran’s ability to attack commercial shipping and innocent civilian mariners in the Strait of Hormuz,” CENTCOM noted on Wednesday night.
“U.S. forces struck approximately 90 Iranian military targets including air defense systems, coastal surveillance assets, missile and drone storage sites, naval capabilities, and military logistics infrastructure along Iran’s coastline. The latest strikes follow successful execution of offensive strikes in Iran the night before,” the announcement noted. “CENTCOM forces hit approximately 80 Iranian military targets July 7, including more than 60 Islamic Revolutionary Guard Corps small boats, to impose heavy costs for Iran violating the ceasefire by attacking three commercial vessels navigating the Strait of Hormuz.”
TRUMP DEMANDS END TO TRADE WITH KEY US ALLY, CALLS IT A ‘WASTED CAUSE’
President Donald Trump indicated on Wednesday that, as far as he was concerned, the U.S.-Iran Memorandum of Understanding ceasefire was “over.”
Kuwait and Bahrain have both reported coming under attack.
The Kuwait Army noted in a Thursday post on X, which was written in Arabic, “The Official Spokesman for the Ministry of Defense, Major General Saud Abdulaziz Al-Otaibi, stated that the armed forces detected, at dawn today, (3) ballistic missiles, (1) cruise missile, and (10) hostile drones within Kuwaiti airspace, which were successfully intercepted and dealt with.”
TRUMP SAYS ‘IRAN LIES AND CHEATS’ AS IRGC EMERGES AS DOMINANT FORCE IN NEGOTIATIONS WITH US
President Donald Trump speaks as he meets with NATO Secretary General Mark Rutte on the sidelines of the NATO summit in Ankara, on July 8, 2026. (SAUL LOEB / AFP via Getty Images)
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The Bahrain Defense Force noted in a post that was in Arabic, “The General Command clarifies that, with firm resolve and high combat readiness, the Bahrain Defense Force’s air defense systems confronted, intercepted, and destroyed several treacherous Iranian aerial attacks this morning, Thursday, July 9, 2026 CE.”
Three wins to go. How can your team reach the final and win the World Cup 2026? Click here to find out.
Who: Norway vs England list of 3 itemsend of list
What: FIFA World Cup 2026 – Quarterfinals
Where: Miami Stadium, Miami Gardens, Florida, the United States
When: Saturday, July 11, at 5pm (21:00 GMT)
How to follow: We will have all the build-up on Al Jazeera Sport from 18:00 GMT before our live text commentary stream.
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Four weeks ago, if you told Norwegians their team would be in the World Cup quarterfinals, they might have laughed it off. But this weekend, the Scandinavian country is set to break new ground.
Norway’s dream run in North America enters a new chapter when the tournament’s dark horses take on title contenders England for a place in the semifinals.
It took Norway a whopping 28 years to return to the sport’s biggest stage, and they have made their mark in style – from their traditional Viking row celebrations capturing global attention to striker Erling Haaland becoming the internet’s darling.
A lethal presence in the box and a goofy, no-nonsense personality off the pitch, Haaland has become somewhat of an all-round entertainer for viewers. His exemplary goal-scoring figures make you almost forget he’s playing in his debut World Cup – and next up, the towering striker will go toe-to-toe with England’s Harry Kane, another number nine who delivers when it matters most.
How did Norway and England reach the round of 16?
Norway finished second in Group I with six points, beating Senegal and Iraq and losing to France. They started their knockout phase with a late 2-1 win over the Ivory Coast before stunning Brazil by the same scoreline to reach the quarterfinals for the first time.
England topped Group L with seven points, beating Croatia and Panama and drawing with Ghana. They needed a second-half comeback to beat the Democratic Republic of the Congo in the round of 32 and knocked out cohosts Mexico 3-2 in a scintillating last-16 contest at the iconic Azteca Stadium.
Pressure firmly on England
The chants of “It’s Coming Home” were louder than ever when England’s fighting spirit – against the background of high altitude, history and a red card – steered them to victory against the home side Mexico.
Sharing 10 of the team’s 11 goals between them, the dynamic duo of Kane and Jude Bellingham has kept England alive in the title race, especially at a time when there are defensive deficiencies in the squad.
The in-form side, which also boasts more World Cup experience than Norway, are deemed favourites to reach the semifinals for the first time since 2018.
“We’ve been here a few times,” said England winger Bukayo Saka. “But the best team on the day is going to be the team that wins, so we’re aware of that and that’s where our focus is.”
England’s leaky defence – which has kept only two clean sheets in five games – will face its toughest test yet against Haaland, whose seven goals rank him third in the Golden Boot race, only behind Lionel Messi and Kylian Mbappe.
Haaland: The most recognisable face at the World Cup
In their first World Cup since 1998, Norway, a nation of just more than five million people, has exceeded expectations.
After stunning the record five-time world champions Brazil to reach their first-ever quarterfinal, Norway will be eager to take down another giant and extend their fairytale run.
As much as their success has been a team effort, the spotlight has centred on their poster boy, Haaland – the blond, pony-tailed, 1.95-metre- (6ft4-) tall striker and a new social media sensation.
With his nonchalant replies in news conferences, awkward post-match selfies on Snapchat and a glittering collection of luxury handbags, the striker has drawn attention for more than just his goal-scoring prowess. In fact, “Haaland mania” has reached a fever pitch during the course of the World Cup.
Instagram is flooded with AI-generated and animated videos of him, stitched with his now-famous song “Ha-ha-ha-Haaland”.
“It’s important to joke around … I like to joke a little bit, and I like to have fun,” Haaland said. “That’s a key for my daily life – to joke around and, of course, train well and prepare well.”
Haaland’s top-notch preparation has delivered outcomes that even the 25-year-old did not expect.
“To be in the quarterfinals with Norway in the World Cup is quite surprising, even for me,” he said.
“Just to be able to play in the World Cup is, for me, a huge honour, and it was a huge goal for me in my career. To be able to be here and play on the biggest stage with my Norwegian friends against the best teams in the world, it’s really special.”
Norway vs England predictions
The Opta supercomputer gives England a 50.4 percent likelihood of winning in regulation time, while Norway’s chances of winning are 25.1 percent.
The model estimates a 24.6 percent probability of the game going to extra time.
What time is Norway vs England?
- Norway: NRK1, NRK2, TV 2 (11pm, Central European Summer Time)
- United Kingdom: STV, STV Player, ITV1, ITVX (10pm, British Summer Time)
- USA: Peacock, Fox, Fox One, Telemundo App, Telemundo Network (5pm, Eastern Daylight Time)
To check the TV listings for your country, head to FIFA’s TV listing schedule here.
Who will the winner face in the semifinals?
The winner of the Norway vs England match will play Argentina or Switzerland in the semifinals in Atlanta on Wednesday.
Norway vs England: Head-to-head
Norway and England have never met at the World Cup, but have previously faced each other 12 times. England have won seven times, Norway twice, while three matches ended in a draw.
Their most recent encounter came in a 2014 international friendly, which England won 1-0 at Wembley.
Norway vs England: Team news
England will be without defender Jarell Quansah after he was handed a two-match ban for picking up a red card in the game against Mexico. He will miss the quarterfinal and a potential semifinal should England advance.
Centre-back Marc Guehi has a slight hamstring strain and will be assessed later on Friday to see if he is fit to play, while Reece James remains doubtful with a hamstring injury.
Defensive midfielder Jordan Henderson has been ruled out of the rest of the tournament with a broken wrist.
No issues have been reported in the Norway camp.
Norway’s predicted lineup
(4-3-3): Nyland (goalkeeper); Ryerson, Ajer, Heggem, Moller Wolfe; Berg, Berge, Odegaard; Sorloth, Haaland, Nusa
England’s predicted lineup
(4-2-3-1): Pickford (goalkeeper); Konsa, Stones, Guehi, O’Reilly; Rice, Anderson; Saka, Bellingham, Gordon; Kane
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