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Von der Leyen Sets EU Defense Push, Ukraine Loan Plan and Israel Sanctions in State of the Union

Prospects remain uncertain given deep splits across EU institutions.

Overview

  • Von der Leyen proposed an EU drone alliance with Ukraine and a Baltic-backed 'wall of drones' to reinforce the eastern flank alongside real-time space surveillance.
  • She said the EU will urgently pursue a loan for Ukraine backed by cash flows from immobilised Russian assets and announced Europe would advance €6 billion from the G7 loan package.
  • On Gaza, she announced the suspension of EU payments to Israel and said the Commission will propose sanctions on extremist Israeli ministers and violent settlers as well as a partial suspension of the EUIsrael Association Agreement’s trade provisions.
  • She said the Commission will create a Group of Palestinian Donors next month with a dedicated instrument for Gaza reconstruction.
  • Her agenda lands as the European Parliament passed an amendment deploring an EU ‘militaristic’ approach to Ukraine and as member-state divisions on Gaza persist, leaving key measures dependent on Council approval.