COUNCIL GREENLIGHTS SIGNATURE OF EU-MERCOSUR PARTNERSHIP AGREEMENT
EU governments have authorised the signature of the partnership and trade agreement between the EU and Mercosur, after more than 25 years of negotiations. A qualified majority backed the deal, with France, Poland, Hungary, Austria and Ireland voting against and Belgium abstaining, mainly over concerns about agriculture and environmental protections. Commission President von der Leyen is expected in Paraguay on Saturday for the signing ceremony, following last month’s decision to delay it to January. The trade part of the agreement can apply provisionally once signed, but full implementation will require the Parliament’s consent and ratification by all EU and Mercosur countries. MEPs remain split on the deal and will vote next week on whether to ask the EU Court of Justice to examine its compatibility with EU law.
EU PROPOSES €90 BILLION FINANCIAL SUPPORT PACKAGE FOR UKRAINE FOR 2026-2027
The Commission has tabled legislation to implement EU leaders’ December agreement on a €90 billion support loan for Ukraine in 2026-2027, financed through common EU borrowing and agreed under enhanced cooperation. The ‘Ukraine Support Loan’ would be split between military assistance (€60 billion) and general budget support (€30 billion). Funds would help Ukraine maintain basic state functions, reinforce defence capabilities and continue reforms tied to rule-of-law and anti-corruption benchmarks under the Ukraine Facility. The loan would be guaranteed by the EU budget, with the Union reserving the right to use proceeds from immobilised Russian assets for repayment. The package now moves to Council and Parliament, with swift adoption needed for first disbursements in mid-2026.
COPENHAGEN AND WASHINGTON IN ‘FUNDAMENTAL DISAGREEMENT’ OVER GREENLAND
Danish and Greenlandic foreign ministers met US officials in Washington but left what Copenhagen called a ‘fundamental disagreement’ over Greenland’s status unresolved. The US continues to signal it wants stronger control over the island for security reasons, while Greenland and Denmark insist that any change to sovereignty is unacceptable. Nevertheless, the three sides agreed to establish a high-level working group to address US concerns while respecting Danish and Greenlandic red lines. In parallel, Denmark is stepping up its military presence in Greenland, backed by small contingents from several European NATO allies. In Brussels, MEPs consider freezing progress on the EU-US trade deal by postponing a vote on lifting tariffs on US industrial goods, explicitly tying the timetable to the outcome of the Washington talks on Greenland.
EU SIGNALS TOUGHER LINE ON IRAN IN RESPONSE TO DEADLY PROTESTS
The EU has sharpened its response to the crackdown in Iran, issuing a statement expressing solidarity for Iranians’ demands for rights and condemning killings, mass arrests and intimidation of demonstrators. EU and UK diplomats were summoned to a closed-door meeting with Iranian Foreign Minister in Tehran, where they expressed strong objections to the repression, in which at least 2,500 people have been killed. Germany and the Netherlands are advocating to add the Islamic Revolutionary Guard Corps to the EU’s terror organisation list, while European Parliament President Roberta Metsola has called for broader sanctions and barred Iranian diplomats from entering Parliament premises. EU Foreign Policy Chief Kaja Kallas is preparing a new Iran sanctions package, expected to be presented to foreign ministers at their 29 January meeting.
