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The speech made by Ursula von der Leyen, the President of the European Commission, on 19 December 2025.

Good evening.

We all share one clear goal.

A just and lasting peace for Ukraine.

So we gathered with a clear objective:

To address Ukraine’s pressing financing needs for the next two years.

And I am very pleased to say: we made it.

We have secured an agreement to deliver on the financing needs for Ukraine for the next two years.

As you know the Commission had proposed two solutions.

Both legally sound.

Both technically feasible.

On the one hand, we proposed EU borrowing on the market.

And on the other hand, we have developed the Reparations Loan.

Last week already, we sent a clear and strong political message by immobilising Russian assets in the EU over the long term.

And building on that, we agreed to find a solution for the financing of Ukraine for the next two years.

Member States have agreed to finance Ukraine through EU borrowing on the capital markets.

For an amount of EUR 90 billion for the next two years. 

We will do this by way of enhanced cooperation that is backed by the EU budget headroom.

And based on a unanimous agreement to amend the MFF.

Similarly to the Reparations Loan, very important, Ukraine would only need to pay back the loan once it receives reparations.

Until then, the assets will remain immobilised.

And the Union reserves its right to make use of the cash balances to finance the loan.

This is the solution we found together.

And as discussed in the last weeks, financing Ukraine beyond 2027 will be part of the next MFF discussion.

The EU’s next budget was also on the agenda.

The Danish Presidency has done a remarkable work.

Today, it was mostly about architecture and calendar.

We need a budget that is faster, simpler and more flexible.

A budget that will ensure Europe’s capacity to meet the demands of a world of crises as demonstrated again today for the financing of Ukraine.

Finally, we agreed on the sense of urgency, and the intense work ahead with the Cypriot Presidency.

We then moved on to the discussion on geoeconomics, including on the Mercosur agreement.

This evening, we have achieved a breakthrough to pave the way for a successful completion of the agreement in January.

We need a few extra weeks to address some issues with Member States.

We have reached out to our Mercosur partners and agreed to postpone slightly the signature.

This deal is of crucial importance for Europe – economically, diplomatically and geopolitically.

It opens new trade and economic opportunities for all our Member States.

With additional checks and safeguards, we have built in all necessary protections for our farmers and our consumers.

In a year dominated by news of rising tariffs and new trade restrictions, the positive impact of this pact matters – not just for our two regions, but for the global economy.

Finally, Mette, I want to praise the Danish Presidency.

In just six months, you delivered impressive results.

41 files were concluded and negotiating mandates secured on 17 more.

You ensured the EU’s unwavering support for Ukraine, with the adoption of the 18th and 19th sanctions packages.

As well as the swift agreement on the immobilisation of the Russian assets last week.

Together we made history with the agreement on REPowerEU – our roadmap to full energy independence from Russia. And with the 2040 Climate target.

Thanks to your work on migration, we were able to effectively kick-start the implementation of the Pact on Migration and Asylum.

Notably with the progress on the Return and Safe countries of origin legislation – just agreed.

You also strengthened Europe’s defence by securing a much awaited agreement on the European Defence Industry Programme, EDIP, and the Defence Omnibus.

And you made significant progress on simplification, with agreement on several omnibuses, making life easier for companies across Europe.

Last but not least, you successfully steered the initial work on the next EU budget.

So you laid a very solid foundation for the presidencies to come.

These achievements speak volumes about your leadership and commitment to the European project.

Many thanks for that.