In the conclusions of the first day of the summit on 15 October 2026, the European Council called on the European Commission to reassess the impacts of the ETS2 emissions trading system, particularly its design and protective mechanisms. The requirement is set out in Article 8 of the conclusions. According to the Czech News Agency, several member states, including Czechia, pushed for its inclusion in the text.[1][2]
Details of the changes
The new Article 7 concerns the Market Stability Reserve, which regulates the supply of allowances on the market. In it, the European Council calls on the co-legislators to speed up the legislative process in order to limit excessive price volatility. The conclusions also explicitly state that, as part of the review of the ETS, allowance price volatility needs to be curbed and the impact on electricity prices mitigated.[1][2]
Position of Czechia and other states
Both changes were sought by the countries of the Visegrád Group — Czechia, Slovakia, Poland and Hungary — and were also supported by Italy and Greece. Prime Minister Andrej Babiš had stated in advance that he would push for further changes to the system and that they would be presented on behalf of the group by Slovakia, which holds its presidency. According to the Czech News Agency, the V4 countries demanded three changes, two of which were apparently met and the third only partially. A call to postpone the introduction of ETS2 until at least 2030, opposed among others by Germany, did not make it into the conclusions.[1][2]
The Commission had already presented adjustments to the allowance system and the Market Stability Reserve earlier in 2026. Czech officials repeatedly described them as insufficient. The proposals are now being discussed by the European Parliament. At the meeting on 15 October 2026, heads of state and government first addressed energy prices, then discussed the proposed EU budget from 2028 onward.[1][2]
Related entries: Government of the Czech Republic
The Prime Minister's position before the start of the summit
Before the start of the EU summit in Brussels on 15 October 2026, Prime Minister Andrej Babiš (ANO) described the European Commission's proposals for new own resources for the Union's next multiannual budget as completely unacceptable for Czechia.[3][4] He objected to the idea that part of the revenue from excise duty on tobacco, the ETS emissions allowances and the CBAM carbon border tax would go to the EU budget, even though it currently flows into the Czech state budget.[3][5]
Babiš said that the differences of opinion among the states are significant and that it is not certain whether an agreement on the budget for the 2028–2034 period will be reached at all. Three European Council meetings devoted to the budget are expected to take place before Christmas.[5] Ahead of the summit, the Irish presidency proposed a budget of €1.622 trillion, eight percent lower than the Commission's original proposal.[3] According to the Czech News Agency, the Czech prime minister wanted to stress at the meeting the need to change the ETS emissions trading system, since the adjustments proposed by the Commission, according to government representatives, are not sufficient.[3]
Babiš also said that Czechia is gradually moving toward the position of a net contributor, and named healthcare, water and motorways as priorities.[5]
Further details from the day of the summit on 15 October 2026
On the evening of 14 October 2026, Babiš met in Brussels with the leaders of the Visegrád Group countries. According to him, they did not discuss the budget and agreed on a possible further meeting during the summit after the Slovak draft text of the conclusions was published. Slovakia held the group's presidency at the time.[3] Regarding revenue from the excise duty on tobacco, Babiš said that the Commission wants three percent from this source.[5] He added that, in his view, Czechia is gradually approaching the position of a net contributor and that he does not understand why member states with completed motorway networks could not contribute to the completion of motorways in Czechia.[5] According to him, Europe is imposing ideological topics on Czechia in connection with European money.[3]
European Council President António Costa expressed hope for an agreement on the budget by the end of 2026. Before the summit, Babiš also spoke with representatives of the Friends of Cohesion group, countries advocating a strong cohesion policy.[3]
According to the agenda, the two-day summit was to address competitiveness, energy prices, the next long-term budget, the situation in Ukraine, Russian hybrid threats and migration. The talks were scheduled to begin around 10:00 Central European Summer Time. During the working lunch, leaders were to discuss global macroeconomic imbalances with regard to China. According to the Czech News Agency, Ukrainian President Volodymyr Zelenskyy was also expected to attend in person on Friday.[3][4]
Chronology
- — Before the start of the EU summit in Brussels, Prime Minister Andrej Babiš called the European Commission's proposals for new own resources of the future multiannual EU budget completely unacceptable for the Czech Republic; he objects mainly to part of the revenue from the tobacco excise duty, ETS emission allowances and the CBAM carbon border levy going to the EU budget. ČTK / České noviny ČT24
- — At the European Union summit in Brussels, the leaders of the member states failed on the first day to agree mainly on the ETS emissions trading system; the Czech Republic is pushing for changes to it. ČTK / České noviny iDNES.cz
- — In the conclusions of the first day of the summit on 15 October 2026, the European Council called on the European Commission to reassess the impact of the ETS2 emissions trading system and called for the legislative process on the market stability reserve to be sped up; the Visegrád Group countries, including Czechia, had pushed for both changes. ČTK / České noviny Hospodářské noviny
- — Prime Minister Andrej Babiš announced after the cabinet meeting that the Czech Republic will push at the European Council for postponing the introduction of the ETS 2 emissions trading system. iDNES.cz
Sources
- ČTK / České noviny — 15 October 2026
- Hospodářské noviny — 15 October 2026
- ČTK / České noviny — 15 October 2026
- ČT24 — 15 October 2026
- Novinky.cz — 15 October 2026