European Union leaders will commit to addressing Ukraine’s urgent financing needs for the years 2026-2027, according to a draft text expected to be approved at a European Council summit in Brussels on Thursday.

A source cited by Reuters said Belgium, which manages frozen Russian assets, backed the draft as the funds could be used as part of a plan to provide a 140 billion euro loan to Ukraine.

However, the draft does not make any reference to this particular proposal

In the document, the European Council invites the European Commission to present as soon as possible concrete proposals for additional financial support to Kyiv, based on an assessment of Ukraine’s financing needs.

Under draft European Council conclusions, backed by Belgium, Russian assets frozen in the EU will remain frozen until Russia ends the war in Ukraine and compensates Kiev for damage caused by the invasion.

European Council President Antonio Costa said the European Union remains fully committed to meeting Ukraine’s urgent economic needs over the next two years.

As he pointed out, this commitment also includes support for the country’s military and defense efforts.

Conclusions on competitiveness

The European Council reached a text of conclusions on the topic of competitiveness and the double transition.

The European Council calls on the Commission and the co-legislators “to push forward with ambition the implementation of the Single Market Strategy by 2028 also taking into account the forthcoming Commission Roadmap”.

Simplification

The transition discussed by the leaders concerns digitization and the green agenda. On the first issue, the Council confirms the urgent need to promote an ambitious and horizontal program of simplification and improvement of legislation at all levels – Union, national and regional – and in all sectors, in order to ensure Europe’s competitiveness, “without undermining the predictability, political objectives, high standards and integrity of the single market”. At the same time, it urges co-legislators “to quickly complete work on the proposed comprehensive simplification packages for sustainability reporting and due diligence, agriculture, small and medium-sized enterprises and digitalisation, preparedness”. The package of measures on sustainability reporting should be adopted by the end of the year and the others as soon as possible in early 2026.

In addition, the European Council calls on the Commission to quickly present further ambitious simplification packages, including “for the automotive industry, military mobility, the digital sector, financial services, transport, the environment, energy and food safety, as well as a revision of the REACH Regulation aimed at strengthening the competitiveness of the chemical sector”.

Green transition

On the difficult issue of the green transition, for which specific red lines were expressed by the leaders, the text of the Council conclusions emphasizes that “for such a fundamental transformation to succeed, it must be fair and impartial, realistic, cost-effective and socially balanced, taking into account different national conditions, providing affordable solutions for the whole economy and for citizens in across the Union to ensure Europe’s competitiveness and prosperity for present and future generations.”

The European Council held a strategic debate on how to support the achievement of the EU’s 2040 interim climate target.

In addition, the Greek positions and the need for a safety valve in the green transition with a horizon of 2040 are adopted in the conclusions. As the text states, the “need for a review clause, in light of the latest scientific evidence, technological developments and the changing challenges and opportunities for the EU’s global competitiveness” is emphasized.