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EU Setbacks Test Merz’s Early Chancellorship as Macron Rift Widens

The latest EU summit exposed limits to the chancellor's leverage after partners blocked his Ukraine funding approach, with Mercosur also postponed.

Overview

  • EU leaders approved roughly €90 billion for Ukraine through new EU borrowing and guarantees rather than by tapping frozen Russian central‑bank assets, the method Merz had pressed for.
  • Italy secured a further delay to signing the Mercosur trade pact, thwarting Merz’s push for an immediate conclusion.
  • Belgium’s reservations over using Russian assets prevailed, with France and Italy siding against Merz’s plan during the summit discussions.
  • Emmanuel Macron signaled he would speak with Vladimir Putin without prior coordination with Berlin, underscoring strains in the Franco‑German partnership.
  • At home, Merz suffered a party‑linked setback as Annegret Kramp‑Karrenbauer won the Konrad‑Adenauer‑Stiftung chair over his preferred candidate, even as supporters point to fiscal loosening and expanded defense funding as tangible achievements.