Ane Barcos
European Union leaders will meet on December 18 in Brussels with the aim of reaching an agreement on funding commitments for Ukraine in 2026 and 2027, based on the two proposals presented by the European Commission: one on the issuance of EU debt and the other on a “reparations loan” backed by frozen assets of the Central Bank of Russia. The 27 will also address the next multiannual financial framework, the bloc’s enlargement, geoeconomic security, and defense, with the goal of strengthening the Union’s position in the face of global challenges.
In his invitation to the heads of state and government of the European Union to participate in the upcoming European Council summit, to be held on December 18 in Brussels, European Council President António Costa explained that the discussions will focus on the situation in Ukraine, security on the European continent, and the EU’s future multiannual financial framework for the period 2028-2034.
Costa stressed that recent developments in Russia’s war of aggression against Ukraine highlight the “urgent need for decisive action by the EU.” European leaders will need to address how to implement the commitment agreed at the October summit, which includes financial and military support measures for Ukraine for the years 2026-2027. In this context, discussions will focus on how to strengthen Ukraine’s negotiating position and how to intensify pressure on Russia, within a framework where diplomatic negotiations for a just and lasting peace are ongoing.
The European Commission presented two proposals on December 3 to address Kyiv’s financial needs. These include the issuance of debt by the EU, taking advantage of available budgetary leeway, and the so-called “reparations loan,” which would be based on the frozen assets of the Central Bank of Russia held in European financial institutions.
Belgium has emerged as the main opponent of Brussels’ proposal to create such a reparations loan. The President of the European Commission assured that Belgium’s concerns had been taken into account and that the proposal had been adapted “virtually in its entirety” to address them.
Both proposals include a set of safeguards designed to protect both EU member states and financial institutions from potential Russian retaliation. These measures aim to mitigate the risks arising from the freezing of assets and the issuance of debt, particularly in relation to potential legal or economic actions in jurisdictions that may be aligned with Russia. Furthermore, a solidarity mechanism has been established, including bilateral guarantees from member states or from the EU budget itself, to cover any remaining risks.
The President of the European Council pledged that the December summit would culminate in an agreement on how to implement this commitment.
Multiannual Financial Framework 2028-2034
In addition to support for Ukraine, the heads of state and government will discuss the EU’s next multiannual financial framework (MFF), which will cover the period 2028-2034. Costa noted that the preparatory work carried out by the Danish presidency has progressed considerably, and that the December summit will serve to assess the progress made so far and guide the next phase of negotiations.
European leaders are expected to reach an agreement on the MFF and its sources of funding by the end of 2026, with the aim of the new funding programs coming into effect in early 2028.
In his letter, Costa also stressed the importance of EU enlargement as a “crucial geostrategic investment for peace, security, stability, and prosperity” in Europe. He noted that some candidate countries could be in a position to join the bloc in the near future, given the progress of their reform processes. Therefore, the December summit will represent a key opportunity to discuss the next steps in this process.
Other agenda items
Another item on the agenda will be the global geoeconomic situation and its repercussions for EU competitiveness. Costa stressed that the 27 member states must reflect on how to better defend themselves against external pressures and accelerate the diversification of their trade agenda. They will also discuss how to achieve the strategic autonomy necessary to maintain the bloc’s economic competitiveness.
The situation in the Middle East will also be a central theme. The President of the European Council mentioned the adoption of UN Security Council Resolution 2803 as an opportunity to move towards peace. In this context, the EU’s role in implementing a ceasefire in Gaza and in promoting a just and lasting peace based on the two-state solution will be analyzed.
European leaders will also address issues related to EU defense and security. Costa stressed that the intensification of Russia and Belarus’s hybrid campaign in Europe underscores the need to accelerate defense efforts to improve the EU’s defensive readiness by 2030. Progress on implementing previous decisions on migration will also be reviewed, following the report from the President of the European Commission.
The President of the European Council stated that his top priority will be making decisions on Ukraine’s financing, although the summit is expected to be limited to a single day of meetings.
