EU to Loan 90 Billion Euros to Ukraine While Delaying Mercosur Agreement

Friedrich Merz fails in Brussels: 90 billion loan to Ukraine, Mercosur agreement delayed.

SUMMARY

At the European summit on December 18 in Brussels, Friedrich Merz failed to secure the use of frozen Russian assets for Ukraine or to finalize the Mercosur agreement. Nevertheless, the EU approved a 90 billion euro loan to Ukraine and postponed the trade agreement with Mercosur.

KEY HIGHLIGHTS

Friedrich Merz aims to strengthen his influence in Europe.
The EU loans 90 billion euros to Ukraine to support its reconstruction.
The trade agreement with Mercosur is postponed due to disagreements.
Environmental and social concerns hinder the negotiations.

CORE SUBJECT

European loan to Ukraine and delay of Mercosur agreement

For Friedrich Merz, who aims to become the strongest figure in Europe, the meeting of European leaders held in Brussels on Thursday, December 18 ended in failure. The German Chancellor came to the Belgian capital with two objectives. The first was to convince the European Union member states to use Russia's frozen assets to finance the reconstruction of Ukraine. The second was to reach an agreement on the trade partnership with Mercosur, a South American bloc that notably includes Brazil, Argentina, Uruguay, and Paraguay. However, negotiations stalled on several sensitive points, including environmental concerns and workers' rights. Ultimately, the EU decided to grant a loan of 90 billion euros to Ukraine to support its economy in the face of Russian aggression, while postponing the signing of the agreement with Mercosur to a later date. This decision reflects the Union's current priorities, focused on solidarity with Ukraine and managing internal tensions within the European bloc.

KEYWORDS

Friedrich Merz European Union Ukraine Mercosur loan trade agreement Russia Brussels

MENTIONED ENTITIES 5

Friedrich Merz

👤 Person_Male

German Chancellor and European political figure

European Union

🏛️ Organization

Political and economic organization of European member states

Ukraine

📍 Location_Country

Country receiving the European loan

Mercosur

🏛️ Organization

South American trade bloc including Brazil, Argentina, Uruguay, and Paraguay

Brussels

📍 Location_City

Capital of Belgium and seat of European institutions

KEY DECISIONS 2

Grant a loan of 90 billion euros to Ukraine.

Decision Maker: European Union

Status: approved

Announced: 2025-12-18

Impact Areas:

Ukrainian economy international relations

Postpone the signing of the trade agreement with Mercosur.