European Union leaders have finalized a massive financial lifeline for Ukraine, approving a €90 billion interest free loan package for the 2026–2027 period. The agreement, reached during a high stakes summit in Brussels on Friday, signals Europe's intent to remain a central pillar of Ukraine’s political and economic stability as the conflict enters its fourth year.
This latest commitment brings total EU support for Ukraine to over €187 billion since the start of the full scale invasion, illustrating how deeply the nation's security has become intertwined with the bloc's geopolitical positioning.
The path to the deal involved intense debate over the use of €210 billion in frozen Russian central bank assets. While some member states initially favored using those funds as collateral, leaders ultimately chose a more legally secure route to ensure the money reaches Kyiv by the spring cash crunch.
The funding structure includes:
The package is designed to cover approximately two thirds of Ukraine’s estimated €137 billion financing gap for the next two years. By securing this long term commitment, the EU seeks to stabilize the Ukrainian economy, which currently spends roughly 27% of its GDP on defense.
Politically, the move strengthens Europe’s hand in future peace negotiations. European Council President António Costa emphasized that strengthening Ukraine is the only viable way to bring Russia to the table. While Hungary and Slovakia abstained from the joint statement, they did not block the consensus, allowing the EU to present a unified front.
This strategic declaration ensures that Ukraine remains institutionally functional and capable of sustaining both its defense and reconstruction efforts, regardless of shifts in international support elsewhere.
The dollar index slipped below 97 as markets awaited delayed January jobs data, with weak retail sales and reports of China urging banks to cut US Treasury exposure adding pressure on the currency.
The dollar index stayed under pressure on Tuesday as fears of softer foreign demand for US assets, reports of Chinese banks cutting Treasury holdings, expectations of delayed US jobs and inflation data, and a firmer yen on intervention talk weighed on the greenback.
Precious Metals Rebound (09-13 February)Global markets began the week with the US dollar under pressure, falling under 97.5 for a second consecutive session. The greenback’s decline was fueled by a combination of improved risk sentiment and expectations of stable Federal Reserve policy with potential rate cuts on the horizon. Investors remained cautious as they awaited a backlog of delayed US economic data, including employment and inflation figures.
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