05/12/2025
EU Insight 5 December 2025
Brussels, 5 December 2025
COMMISSION PROPOSES NEW FINANCIAL ASSISTANCE PLANS FOR UKRAINE
After weeks of intense debate, the Commission has finally proposed two options to support Ukraine’s financial needs for 2026-2027: EU-level borrowing and a Reparations Loan. The proposed package amounts up to €210 billion, the proposal includes using cash balances from immobilised Russian assets held by EU financial institutions, backed by risk-sharing and solidarity mechanisms. Further discussions are anticipated to be contentious, with Belgium already expressing its refusal to use frozen Russian assets for this purpose. Additionally, the Council and Parliament have agreed to a gradual ban on Russian gas imports and a phase-out of Russian oil by the end of 2027, with Russian LNG prohibited from 2026 and all pipeline gas imports ending by September 2027.
NEW EU STRATEGIES ON ECONOMIC SECURITY & RAW MATERIALS TO FOSTER STRATEGIC AUTONOMY
The Commission unveiled a reinforced EU Economic Security Strategy alongside the RESource EU Action Plan, signalling a more assertive approach to resilience and strategic autonomy. The updated strategy introduces a shift toward proactive risk management in high exposure sectors, such as critical infrastructure, defence and advanced technologies, supported by enhanced investment screening, stricter export controls, and closer coordination with Member States and businesses. In parallel, the RESource EU plan aims to inject €3 billion into securing critical raw materials, including funding new extraction and recycling projects within Europe, joint purchasing, and establishing a European Critical Raw Materials Centre. Together, these initiatives mark a significant turn in EU policy, aiming to reduce vulnerabilities and manage strategic dependencies more systematically.
COMMISSION PRESENTS COMPREHENSIVE MARKET INTEGRATION AND SUPERVISION PACKAGE
The Commission has published its proposal for a Market Integration and supervision Package, described as ‘critical’ for advancing the Savings and Investments Union. Aiming to address the current fragmentation of EU capital markets by removing barriers, the proposal presents amendments to dozens of structural financial regulatory pieces. It intends to facilitate investors’ access to investment opportunities, allow companies to raise capital across borders and increase the EU’s investment capacity. Most importantly, the Commission proposes to centralise supervision of large cross-border market infrastructures and crypto-asset services providers by transferring certain powers from national authorities to ESMA, the authority for securities and markets. While the Commission calls for a swift deal, several elements like central supervision will make upcoming negotiations anything but simple.
NEW PLAN UNVEILED TO STRENGTHEN EU HEALTH CRISIS READINESS
The Commission has proposed a Union Prevention, Preparedness and Response Plan to bolster the EU’s resilience to cross-border health crises. The Plan sets out tools for prevention, early detection, coordinate response and recovery from all types of health threats, guiding and supporting national crisis strategies. It introduces regular testing and updating based on real-world experience, aiming to enhance both EU and Member States capacity to manage emergencies. Overall, the Commission intends to address existing vulnerabilities and help move the EU toward enhanced health security. In parallel, the Council has agreed on its negotiating mandate on the Critical Medicines Act, which seeks to diversify supply chains, boost local manufacturing and strengthen the availability of essential medicines.
COUNCIL AND PARLIAMENT AGREE TO SIMPLIFY EU DEFORESTATION LAW
The Council and the Parliament have reached a political agreement to simplify and postpone the EU regulation on deforestation-free products. The original legislation, already delayed until December 2025, aimed to ensure that commodities such as cattle, cocoa, coffee, palm oil, rubber, soy and wood, placed on or exported from the EU market are not linked to deforestation. Responding to concerns about administrative burdens, the co-legislators decided to delay application for all producers until December 2026, with an extra six months for micro and small operators. Key changes include simplifying due diligence requirements, excluding books and newspapers from the scope and tasking the Commission with a further simplification review. The deal is now awaiting formal adoption by both institutions.
COMING UP NEXT WEEK
- 8-9 December: Competitiveness Council. On the agenda: Simplification, removal of barriers, green techologies investments, EuroHPC, Horizon Europe Package.
- 9 December: Justice and Home Affairs Council. On the agenda: Ukraine, data protection, EU drugs policy.
- 10 December: College of Commissioners. On the agenda: Environmental Omnibus, European Grids Package, Clean Industrial deal implementation package, Automotive Package.
- 11 December: Eurogroup. On the agenda: Election of the new President of Eurogroup, IMF review of Euro Area policies, Assessment of draft budget plans.
- 11-12 December: Agriculture and Fisheries Council. On the agenda: Fishing opportunities, Post-2027 CAP proposals on innovation and simplification.
- 12 December: Economic and Financial Affairs Council. On the agenda: Customs reform, Single Currency Package, Imports of Small Parcels, Savings and Investment Union, European semester 2026, Simplification, Recovery and Resilience Facility, Taxation.
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