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EU backs Ukraine with €90bn loan as unity fractures over Russia

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EU agrees €90 billion loan to Ukraine, but squabbles over frozen Russian assets expose the bloc’s deep divisions

Richard Whitman, University of Kent; Royal United Services Institute and Stefan Wolff, University of Birmingham

By agreeing to provide a loan of €90 billion (£79 billion) for the years 2026-2027, EU leaders have set the direction for the future of support for Ukraine.

At stake at the meeting of the European Council on December 18 was not just Kyiv’s ability to continue to defend itself against Russia’s ongoing aggression, but also the credibility of the EU as a player in the future of European security.

The key decision for the EU’s leaders was whether, and how, they would provide financial support for Ukraine over the next two years. Europeans have provided a vital drip-feed of ongoing financial assistance to Kyiv throughout almost four years of war.

But they have also struggled to fill, in its entirety, the hole created by the withdrawal of US support since the return of Donald Trump to the White House in January 2025.

The estimated €136 billion of budget support needed by Ukraine in 2026 and 2027 is a relatively fixed figure regardless of whether any peace initiative comes to fruition. A large part of it – €52 billion in 2026 and €33 billion in 2027 – is for military support.

The EU-agreed loan of €90 billion, “based on EU borrowing on the capital markets backed by the EU budget headroom”, thus covers at least the essential military needs of Ukraine. The loan will either contribute to the ongoing war effort or help create a sufficiently large and credible defence force to deter any future aggression by Russia.

Brussels is now the most important financial partner for Ukraine by any measure.

To fund the support the EU wants to provide to Ukraine, the commission developed two proposals. The most widely supported – and ultimately rejected – proposal was to use the Russian assets held by the Belgium-based Euroclear exchange as collateral to for a loan to fund Ukraine’s defence and reconstruction over the next few years.

In view of Belgian opposition because of insufficient protections against likely Russian retaliation, the European Commission had also proposed joint EU borrowing to fund support for Kyiv. Despite resistance from a group of EU member states, it was the only agreeable solution at the end.

The agreement on a loan to Ukraine funded from EU borrowing achieves the primary goal of securing at least a modicum of budgetary stability for Kyiv. But it came at the price of EU unity.

An “opt-out clause” had to be provided for Hungary, Slovakia and Czechia. All three countries are governed by deeply Euro-sceptical and Russia-leaning parties.

The deep irony is that by opposing EU support for Ukraine, they expose Ukrainians to a fate similar to that they suffered when the Soviet Union suppressed pro-democracy uprisings in Hungary in 1956 and then Czechoslovakia in 1968.

The EU until now managed to maintain a relatively united front on sanctions against Russia, on political, economic and military support for Ukraine, and on strengthening its own defence posture and defence-industrial base.

Over the past year, these efforts have accelerated in response to Trump’s return to the White House. This has shifted the US position to one which is in equal measure more America first and more pro-Russia than under any previous US administration.

And the pressure on Kyiv and Brussels has increased significantly over the past few weeks.

First there was the 28-point peace plan, which may have been a US-led proposal, but read as if it was Kremlin-approved. Then the new US national security strategy, which gave significantly more space to criticisms of Europe than to condemnation of Russia for the war in Ukraine.

No longer casting Russia as a threat to international security shows how detached the US has become from reality and the transatlantic alliance.

Russia’s president, Vladimir Putin, keeps insisting that he will achieve his war aims of fully annexing another four Ukrainian regions – in addition to Crimea – by force or diplomacy. Giving his usually optimistic outlook on Russia’s military and economic strength, Putin reiterated these points at his annual press conference on December 19.

EU divisions widen

In light of how squeezed Brussels and Kyiv now are between Washington and Moscow, the agreement on EU financing for Ukraine, despite its flaws and the acrimony it has caused within the EU, is a significant milestone in terms of the EU gaining more control over its future security. But it is not a magic wand resolving Europe’s broader problems of finding its place and defining its role in a new international order.

The agreement reached at the summit between the EU’s leaders on how to financially support Ukraine was overshadowed by their failure to overcome disagreement on signing a trade agreement with the South American trade group, Mercosur.

A decision on this trade deal with Argentina, Bolivia, Brazil, Paraguay, Uruguay and (currently suspended) Venezuela had been 25 years in the making. The deal was due to be signed on December 20, but this has now been postponed until January.

This is meant to provide time for additional negotiations to assuage opponents of the deal in its current form, especially France, Italy and Poland, who fear that cheaper imports from Mercosur countries will hurt European farmers. Those farmers staged a fiery protest at the European parliament ahead of the European Council meeting.

The delay does not derail the trade deal, which aims to create one of the world’s largest free trade areas. But it severely dents the EU’s claim to leadership of an international multilateral trading system based on rules that prioritise mutual benefit, as an alternative to the Trump administration’s unpredictable and punitive America-first trade practices.

Both disagreements continue to hamper the EU’s capacity for a decisive international role more generally. Where Trump’s US offers unpredictability, Brussels for now only offers extended procrastination on key decisions.

This places limits on the confidence that the EU’s would-be partners in a new international order can have in its ability to lead the shrinking number of liberal democracies. Without skilled and determined leadership, they will struggle to survive – let alone thrive – in a world carved up between Washington, Moscow and Beijing.The Conversation

Richard Whitman, Member of the Conflict Analysis Research Centre, University of Kent; Royal United Services Institute and Stefan Wolff, Professor of International Security, University of Birmingham

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Pentagon’s AI gamble: Is Grok safe for defense?

Pentagon to integrate Elon Musk’s AI chatbot Grok, exploring military data and innovation amid AI controversies.

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Pentagon to integrate Elon Musk’s AI chatbot Grok, exploring military data and innovation amid AI controversies.


Defense Secretary Pete Hegseth announced that Elon Musk’s AI chatbot Grok will soon be integrated with the Pentagon’s networks.

The move aims to harness military data to develop advanced AI technology, despite recent controversies surrounding Grok’s content generation. This integration signals a bold step toward combining commercial AI tools with national defence systems.

Dr Karen Sutherland from UniSC explores the implications of this partnership. We discuss how Hegseth’s approach to AI differs from the Biden administration’s framework, the measures in place to ensure responsible use, and the limitations on Grok’s image generation capabilities.

We also examine the potential risks and international reactions, as well as Hegseth’s vision for innovation within the military. From civil rights considerations to prioritising key technologies, this story highlights the complex balancing act of AI in modern defence.

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U.S. pushes Latin American dominance

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What lies ahead for Latin America after the Venezuela raid?

Nicolas Forsans, University of Essex

The Trump administration has justified the recent capture of Venezuelan leader Nicolás Maduro as a law enforcement operation to dismantle a “narco‑state”. It also claimed it would break Venezuela’s ties to China, Russia and Iran, and put the world’s largest known oil reserves back under US‑friendly control.

This mix of counter‑narcotics, great power rivalry and energy security had already been elevated to a central priority by the administration in its national security strategy. Published in late 2025, the document announced a pledge to “reassert and enforce American preeminence in the western hemisphere” and deny “strategically vital assets” to rival powers.

Donald Trump has referred to this hemispheric project as the “Donroe doctrine”, casting it as a revival of the Monroe doctrine policy of the 19th century through which the US sought to stop European powers from meddling in the Americas. He seems to be seeking to tighten the US grip on Latin America by rewarding loyal governments and punishing defiant ones.

If Venezuela is the first test case of the Donroe doctrine, several other Latin American countries now sit squarely in Washington’s crosshairs. The most immediate target is Cuba, which the US has opposed since 1959 when communist revolutionary Fidel Castro overthrew a US-backed regime there.

Trump and his secretary of state, Marco Rubio, have openly hinted that Cuba could be Washington’s next target. They have described Cuba as “ready to fall” after the loss of Venezuelan oil and have boasted that there is no need for direct intervention because economic collapse will finish the job.

Cuba is enduring its worst crisis since 1959. Blackouts now regularly last up to 20 hours, real wages are collapsing and roughly 1 million Cubans have fled the country since 2021. This is all happening as Venezuelan crude oil is being redirected under US control.

For over two decades, Venezuela has provided Cuba with fuel and financing in exchange for doctors, teachers and security personnel – 32 of whom were killed in the US capture of Maduro, according to the Cuban government. Strangling Cuba’s remaining lifelines may well be enough to topple the government there without US forces needing to fire a single shot.

It is possible that Mexico will also soon come under fire. Mexico has quietly become Cuba’s main oil supplier, shipping roughly 12,000 barrels per day in 2025 to account for about 44% of the island’s crude imports. This is unlikely to please the Trump administration, which has recently renewed its threats to “do something” about Mexican drug cartels.

The raid in Venezuela’s capital, Caracas, took six months of meticulous planning and required an extraordinary amount of resources. So it is unrealistic to expect similar raids on other Latin American countries. However, targeted military strikes cannot be excluded.

Speaking on Fox News’s “Hannity” show on January 8, Trump said: “We are going to start now hitting land with regard to the cartels. The cartels are running Mexico.” He did not provide further details about the plans.

Mexico’s president, Claudia Sheinbaum, is trying to construct protective buffers. She has combined condemnation of the raid on Caracas with intense cooperation with the US on migration and security. This includes a deal for Mexico’s navy to intercept suspected drug-running boats near its coastline before US forces do.

But as part of a strategy that pushes US dominance of Latin America, Trump has already floated classifying Mexico’s cartels as terrorist organisations and the fentanyl they traffic across the border as a weapon of mass destruction. These are legal framings that could be used to justify strikes on Mexican soil in the name of counter-narcotics in the near future.

Trump’s other targets

Colombia, historically Washington’s closest military ally in South America, has flipped from “pillar” to possible target. The country’s president, Gustavo Petro, has been one of the loudest critics of the Venezuela raid. He called it an “abhorrent violation” of Latin American sovereignty committed by “enslavers”, adding that it constituted a “spectacle of death” comparable to Nazi Germany’s 1937 carpet bombing of Guernica in Spain.

Trump, who imposed sanctions on Petro and his family in October, responded by labelling the Colombian president a “sick man who likes making cocaine and selling it to the United States”. He then mused that a Venezuela‑style operation in Colombia “sounds good to me” before a hastily arranged phone call and White House invitation dialled back the immediate threat.

How long the conciliation between the two men lasts remains to be seen. Colombia has entered a heated presidential campaign season in which Trump’s remarks are already being read as an attempt to tilt the race, much as his interventions shaped recent contests in Argentina and Honduras.

Further down the hierarchy, Nicaragua’s government will also have watched events unfold in Venezuela with terror. Long treated in Washington as part of a trilogy of dictatorships with Cuba and Venezuela, Nicaragua features in US indictments against Maduro as a transit point for cocaine flights. Nicaragua was also recently designated by the US as a key drug‑transit country.

The unusually cautious statement on the Venezuela raid by Nicaraguan presidential couple Daniel Ortega and Rosario Murillo, as well as the rapid reinforcement of the presidential compound in the capital Managua, suggest a regime that knows it could be next in line should Trump choose to extend his “narco‑terrorism” narrative.

Trump appears to be turning longstanding US concerns – drugs, migration and interference by other major powers – into a flexible toolbox for coercion in Latin America. Countries that defy Washington or host its rivals risk being framed as security threats, stripped of economic lifelines and, possibly, targeted militarily.

Those that keep their heads down may avoid immediate punishment. But this comes at the price of treating hemispheric dominance as a fact of life rather than a doctrine to be resisted.The Conversation

Nicolas Forsans, Professor of Management and Co-director of the Centre for Latin American & Caribbean Studies, University of Essex

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Antisemitism debate a political minefield for royal commission

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The antisemitism debate is already a political minefield. The royal commission must rise above it

Matteo Vergani, Deakin University

What we currently know about antisemitism in Australia is pieced together from a fragmented body of information produced by community organisations, researchers and law enforcement. And it is largely interpreted and translated to the public through news reporting.

Through this reporting, Australians have learned that organised criminal groups were involved in targeting Jewish communities and foreign actors also played a role.

At the same time, some data on antisemitic incidents released by security agencies has been incorrect. Other statistics produced by community organisations has been publicly challenged.

Researchers like myself have also produced data on antisemitic incidents, but this is limited in many ways.

In a nutshell, the picture of what constitutes antisemitism and how and why it has spiked in recent years is far from being clear.

This lack of clarity matters. Without a reliable understanding of what happened in the lead-up to the Bondi terror attack, which data can be trusted, and how different forms of antisemitism intersect, Australia cannot fully grasp how it reached a point where Jewish Australians were murdered at a public religious gathering.

Shedding light on this problem will be difficult, but it is essential to understand both the scale of the problem and how to respond.

Potential for more divisiveness

The royal commission established by Prime Minister Anthony Albanese is designed to address many of these unresolved issues.

As set out in its terms of reference, it will examine the nature and prevalence of antisemitism in Australia and assess how it can be more effectively addressed. It will also:

  • Review the responses of security and law enforcement agencies
  • Investigate what happened before, during, and after the Bondi attack
  • develop recommendations aimed at strengthening social cohesion.

Social cohesion and national consensus are the stated end goals of the entire exercise. Yet, the context in which the commission is operating is highly volatile. There is a real risk that rather than repairing social cohesion, the process itself could damage it.

This risk comes from the heavy political pressure now attached to the royal commission and from the way some political actors are using it as a weapon in broader political battles, including attacks on the government.

The antisemitism debate is already a political minefield. And the commission has entered that terrain from its first day.

The decision to acknowledge the International Holocaust Remembrance Alliance’s definition of antisemitism in the terms of reference is likely to be used by some to delegitimise the commission altogether. Critics argue the definition can be used to silence legitimate criticism of Israel, while supporters say it draws a necessary line between political critique and antisemitic tropes.

At the same time, some politicians have questioned the appointment of Former High Court justice Virginia Bell to head the commission, which could also undermine the credibility of the inquiry.

As a result, the commission is already inflaming existing political tensions. This is deeply unfortunate because it makes the task harder for those who are genuinely focused on understanding antisemitism, responding to it effectively, and improving the safety and well-being of Jewish Australians.

Why the Christchurch royal commission was successful

Royal commissions carry strong symbolic weight. They are often implemented when something has gone badly wrong, and the social fabric feels strained. The aim is to restore trust and provide a clear public account of what happened and why.

A useful point of comparison is the royal commission that followed the Christchurch terrorist attack in New Zealand. The inquiry led to wide-ranging reforms, including changes to firearms laws, counter-terrorism frameworks, approaches to social cohesion and inclusion, hate crime and hate speech legislation, and improved support for victims and witnesses.

It also contributed to the creation of the Christchurch Call to eliminate terrorist and violent extremist content online. This global initiative involving governments and technology companies has been successful in limiting the spread of terrorist and violent extremist material.

However, the political and social climate in New Zealand at the time was very different. There was a stronger sense of national unity and far less public contestation about what constituted hate. The attack was also not entangled with an ongoing and deeply polarising international conflict.

In Australia, the context is far more charged. The war in Gaza continues to divide public debate, regularly spilling into domestic politics.

It’s worth noting that antisemitic attacks have not stopped after Bondi. There was a firebombing less than two weeks later. This makes the task of using a royal commission to calm tensions and rebuild trust significantly harder.

Many pieces to the puzzle

Despite these difficulties, the commission matters now more than ever. Jewish Australians need answers, and the broader public deserves to understand what actually happened.

At present, the picture of what has caused rising antisemitism and the Bondi attack is confused. Public sentiment on the war, organised crime, foreign actors and terrorist ideology all appear to intersect, but how they connect remains unclear.

Different security agencies, researchers, and community organisations hold different pieces of evidence. Without bringing these strands together, Australians cannot fully understand the problem, let alone work out how to prevent it from happening again.

The path ahead will be difficult and exposed to disruption. One obvious challenge is the risk of further attacks while the inquiry is underway. Any new incident would complicate the process.

If, for example, an attack occurred that was shown to involve formal training or links to a terrorist organisation, serious questions would arise about whether the commission’s terms of reference remain adequate, or whether additional investigative processes would be required.

The most important test will come at the end. The commission’s recommendations must be acted on, regardless of which party is in government. That follow-through is what determines whether a royal commission produces real change or becomes just a symbolic exercise.

Meeting this test will require political restraint and maturity. It will mean resisting the temptation to turn the commission into a tool for partisan conflict and instead treating it as a shared national effort to protect communities and restore trust.The Conversation

Matteo Vergani, Associate Professor and Director of the Tackling Hate Lab, Deakin University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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