Following a chaotic and contentious summit described by insiders as an "ambush," the European Union announced a massive $105 billion interest-free loan to Ukraine on December 19 to cover its military and economic needs for the next two years. The final agreement emerged after a fierce overnight battle where a German-led proposal to immediately leverage frozen Russian assets was shot down. Italy’s Prime Minister Giorgia Meloni was reportedly the "killer" of the original plan, citing legal risks, while French President Emmanuel Macron also got cold feet. The Financial Times revealed that German Chancellor Friedrich Merz’s complex scheme spooked leaders, leading to an alternative Belgian-spearheaded deal. Under the approved terms, Ukraine is only expected to repay the loan if Russia pays war reparations; if Moscow refuses, the EU reserves the right to use the frozen assets to cover the debt. Notably, Hungary, Slovakia, and the Czech Republic secured exemptions from financial obligations related to the deal.
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