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EU Backs €90 Billion Loan for Ukraine After All-Night Summit

Leaders opted for an EU financing plan after legal and market warnings over seizing frozen Russian assets stalled that route.

Overview

  • The agreement secures roughly €90 billion for 2026–27 via EU-issued bonds backed by the EU budget’s headroom and national guarantees.
  • The proposal to deploy frozen Russian sovereign assets was set aside, with leaders leaving the issue in the conclusions for further work and potential parliamentary scrutiny.
  • Belgium’s position was decisive because Euroclear in Brussels holds the largest share of the estimated €210 billion in frozen Russian reserves, prompting concerns about litigation and financial stability.
  • The compromise followed visible tensions as Germany’s Friedrich Merz pressed to use the assets while Italy’s Giorgia Meloni, joined by other cautious capitals, insisted on a solid legal basis.
  • Separately, the EUMercosur trade deal signature was postponed to January after large farmer protests and demands from Italy and France for stronger safeguards for agriculture.