On Tuesday Parliament backed, by a show of hands, a request to fast-track its legislative processes on draft legislation for a loan to Ukraine. The proposal would introduce an EU reparations loan for Ukraine, underpinned by the European Commission borrowing against the profits and cash balances generated by immobilised Russian state assets. This new instrument, if adopted, would support Ukraine’s financial needs and state budget, including military capabilities, as well as the country’s defence industry and its integration into the European Defence Industrial Base. The proposed loan is linked to the existing Ukraine Facility and Ukraine Loan Cooperation Mechanism.

Following the decision to speed up the process, MEPs will adopt a position on the proposal, ahead of negotiations with member state governments, during the next plenary session, from 19 to 22 January 2026.

Next steps

With the European Parliament having kicked off its work, the proposal (part of a package) will also…