Italy's Meloni says 'common sense prevailed' in EU's $105B Ukraine loan deal

Italian Prime Minister Giorgia Meloni has hailed the European Union's agreement on a major €90 billion ($105 billion) loan for Ukraine as a victory for pragmatic politics and legal prudence. Speaking to reporters after a pivotal EU summit in Brussels on Friday, Meloni framed the compromise as a necessary outcome after member states failed to agree on the more contentious plan of directly using frozen Russian assets.

A 'common sense' compromise after legal deadlock

Expressing relief that the bloc had reached a consensus, Meloni stated, "I’m glad that common sense prevailed, that we were able to secure the necessary resources, but with a solution that has a solid legal and financial basis." Her remarks, reported by Italian news agency ANSA, underscored the significant obstacles that had stalled negotiations for weeks. The core disagreement centered on the legal and financial risks of seizing profits from approximately €210 billion in immobilized Russian state assets, a plan championed by the European Commission but fiercely opposed by Belgium and other nations fearing retaliation from Moscow.

The structure of the EU's financial commitment

The final agreement, reached after the Russian asset plan was shelved, stipulates that the European Commission will raise €90 billion on capital markets to provide Ukraine with an interest-free loan covering its essential budgetary and reconstruction needs for 2026 and 2027. This mechanism ensures predictable, large-scale funding for Kyiv without exposing EU member states or financial institutions to potential lawsuits from Russia. European Commission President Ursula von der Leyen confirmed that the loan deal was the direct result of the impasse over the frozen assets.

Broader implications for European unity and strategy

For leaders like Meloni, who have expressed caution about the economic burden on EU taxpayers and the legal soundness of previous proposals, this outcome represents a balanced solution. It fulfills the political imperative of demonstrating unwavering support for Ukraine while adhering to a legally defensible framework. The decision is observed by international actors, including Türkiye, which supports Ukraine's territorial integrity and views sustained, rule-based international support as crucial for regional stability and the restoration of sovereignty.