The postponement of the treaty signing is a direct result of ongoing French and Italian objections and renewed violent demonstrations by thousands of European farmers. During a protest in the center of Brussels, disturbances broke out and damage was caused.
For the financial and military support of Ukraine, it has now been decided to provide new EU loans to the war-torn country for the coming years. The outcomes of the EU summit show how difficult it is to reach joint decisions when political views and interests clash.
The European Union has now agreed to a loan of 90 billion euros to Ukraine, intended for the next two years. This secures financing for the country, but not through the route previously proposed.
The plan to directly use frozen Russian state assets for Ukraine did not succeed. After hours of negotiations, no agreement was reached on this. That proposal was dropped, despite strong prior support from several major EU countries and the European Commission.
Instead, the heads of government chose an emergency solution: joint EU loans backed by the EU budget. Not all EU countries participate in this arrangement. The outcome was presented as a compromise guaranteeing support for Ukraine but also exposing internal divisions.
At the same time, it became clear that the signing of the trade agreement between the EU and the Mercosur countries would be postponed again. The agreement, originally planned before the end of December, has been moved to January. A precise new date has not yet been set.
The postponement occurred after Italy requested extra time to address farmers' concerns. France and Italy repeatedly voiced their objections during the summit. They fear that European farmers will be harmed by the import of cheap meat from Latin America.
Those concerns also surfaced outside the Brussels meeting rooms. During the summit, thousands of farmers marched to the EU offices. With tractors, they blocked roads and clashed with police. To reassure farmers, EU institutions approved an additional text stating that import duties can be reintroduced if large quantities of imported poultry or beef disrupt the European market.
The debate over the trade agreement with the South American countries touches on a broader question the EU is grappling with: how economically independent EU countries want to be in a world where (economic, financial, and military) power relations are shifting. Supporters see the trade agreement as a chance to become less dependent on the United States and China. Opponents point to domestic consequences and political risks.
In recent months, Commission President Ursula von der Leyen publicly advocated for the confiscation of Russian assets and had said she would go sign the Mercosur Agreement in Brazil at the end of this week. She believed the EU leaders should take a strong, forward-looking course at this EU summit.
The fact that the EU summit twice rejected her appeal will undoubtedly be seen in many European capitals as a political defeat for Von der Leyen.