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EU reaches compromise on Mercosur agricultural imports • Trump announces 'Warrior Dividend' • US and Russia to negotiate this weekend in Miami

Good morning on December 18, 2025. Here are the top news stories to start your day.

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EU reaches compromise on Mercosur agricultural imports • Trump announces 'Warrior Dividend' • US and Russia to negotiate this weekend in Miami

Global political tensions have flared on multiple fronts this week. In Europe, divisions deepened over the Mercosur trade deal, while the US and Russia prepared for high-stakes talks on Ukraine. Meanwhile, Australia’s prime minister admitted shortcomings in tackling antisemitism after a violent attack in Sydney.

The EU’s long-stalled Mercosur trade agreement faced fresh resistance as five member states—France, Italy, Poland, Austria, and Hungary—formed a blocking minority. France and Italy demanded changes, while Poland and Austria openly opposed the deal, citing threats to their agricultural sectors. To ease concerns, EU leaders agreed to launch an investigation if agricultural imports from Mercosur countries surged by more than 8% annually. Critics in Austria labelled the government’s stance as bordering on scandal, yet the country remained firm in its opposition.

Across the Atlantic, US President Donald Trump delivered a State of the Nation address, highlighting his administration’s achievements. He also announced a ‘warrior dividend’—a $1,776 payment for service members—promised before Christmas. The speech came ahead of weekend talks in Miami, where US and Russian officials will discuss a Trump-proposed plan to end the war in Ukraine. No details of the proposal have been released, and expectations of a breakthrough remain low.

In Australia, Prime Minister Anthony Albanese publicly acknowledged failures in combating antisemitism. His remarks followed a deadly attack on a Jewish festival in Sydney, where he admitted the government had not done enough to prevent such violence.

EU leaders also gathered to explore repurposing frozen Russian assets to fund Ukraine’s defence. While the idea gained traction, no concrete agreement emerged from the discussions.

The coming days will see critical negotiations on Ukraine’s future, with US-Russia talks set for Miami. In Europe, the Mercosur deal remains stalled, and Australia grapples with the fallout from a violent antisemitic attack. Each issue highlights deep divisions—both within nations and between global powers.

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