19/12/2025
EU Insight 19 December 2025
Brussels, 19 December 2025
EU LEADERS AGREE ON NEW UKRAINE FINANCING PACKAGE
During the European Council, EU leaders agreed to provide Ukraine with a €90 billion loan for 2026-2027, financed through EU borrowing on capital markets and supported by an amendment of the Multiannual Financial Framework (MFF). The deal, endorsed by 25 Heads of State and Government, followed lengthy discussions on alternatives such as a reparations loan backed directly by Russian frozen assets, which were fiercely opposed by Belgium. Using enhanced cooperation, the scheme would ensure that guaranteeing the loan does not create budgetary obligations for Czechia, Hungary and Slovakia, and Ukraine will only start repaying once it receives war reparations from Russia. Additionally, President von der Leyen mentioned that support for Ukraine beyond 2027 will be addressed in the next MFF.
MERCOSUR TRADE AGREEMENT SIGNATURE POSTPONED TO JANUARY
The EU has agreed to postpone the signing of its long-negotiated trade agreement with Mercosur until early January, after Italy joined France in seeking more time to address concerns from the agricultural sector. The move follows large farmer protests in Brussels during the European Council, amid fears that increased imports of beef, poultry and cereals could undercut EU producers. No new signature date has been set yet, fuelling concern that further hesitation from the EU could test the patience of Mercosur partners. The delay had come one day after Parliament and Council negotiators reached a provisional deal on additional safeguards for sensitive agricultural products, allowing the Commission to investigate and potentially reintroduce tariffs if import volumes or prices shift sharply.
EU INSTITUTIONS SET JOINT 2026 LEGISLATIVE PRIORITIES
On the margins of the European Council, the Presidents of the European Commission, the Council, and the Parliament signed a joint declaration setting out their shared legislative priorities for 2026. The three institutions commit to focus on European defence and security, boosting competitiveness and resilience, protecting citizens and businesses, and advancing the simplification agenda. The Declaration highlights ten flagship files the co-legislators aim to conclude next year, including the new 28th regime for innovative companies, the Critical Medicines Act and the European Grids Package. Preparations for the 2028-2034 next EU budget will also intensify, with the Commission seeking a political deal before 2027 to enable a timely endorsement of the EU budget.
COMMISSION ADJUSTS 2035 EV RULES IN NEW AUTOMOTIVE PACKAGE
The Commission has presented an Automotive Package, which includes a corporate fleet decarbonisation initiative, a €1.8 billion battery support scheme, a so-called Automotive Omnibus to simplify EU rules, a new ‘small affordable car’ category, and updated car labelling rules. Importantly, the package also proposes to adjust the current 2035 ‘EV mandate’, which bans sales of non-zero emission cars, by lowering the 100% CO2 reduction target to 90%. The remaining 10% would be covered through climate-neutral fuels and low-carbon materials such as European green steel. According to the Commission, the measures aim to maintain a strong signal for zero-emission vehicles, while giving manufacturers more flexibility and cutting red tape in the transition to clean mobility.
COMMISSION PROPOSES HEALTH PACKAGE TO BOOST COMPETITIVENESS AND RESILIENCE
This week, the Commission has unveiled a health package to improve citizens’ well-being while strengthening the EU’s long-term competitiveness. To modernise the health ecosystem, the proposal plans to support the biotechnology sector, speed up the development of innovative treatments and devices, and address cardiovascular diseases. The proposed Biotech Act would simplify regulation, expand access to finance and help bring advanced therapies from lab to market more quickly. The Safe Hearts Plan targets cardiovascular diseases, the EU’s main cause of premature death, through better prevention, earlier detection and improved treatment, with a focus on reducing inequalities between Member States. The package also includes changes to EU rules on medical devices to streamline procedures, support innovation and safeguard patient safety.
WE WISH YOU A MERRY CHRISTMAS AND A HAPPY NEW YEAR!
THE EU INSIGHT WILL BE BACK IN JANUARY 2026.
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