The EU wants to take on new debt in order to provide Ukraine with around 60 billion euros for weapons and ammunition in 2026 and 2027. Another 30 billion are to be used to support the Ukrainian state budget in order to avert the threat of insolvency from April. This emerges from a proposal presented by the EU Commission in Brussels on Wednesday.
The Brussels authority is implementing a decision from the last EU summit at the end of December. Originally there was talk of a “reparations loan” that would be financed with the help of Russian assets secured in the EU. But Chancellor Friedrich Merz (CDU) failed due to resistance from Belgium. Now comes Plan B, which Merz had strictly rejected until the end.
To achieve this, the EU has to take on new debt. This is no longer taboo – Brussels had already taken on 750 billion euros in debt during the 2020 corona crisis. This time the EU is going to hell for a third country – Ukraine. In addition, Merz and EU Commission President Ursula von der Leyen (CDU) are breaking their promise that the corona debt should remain an absolute exception.
Von der Leyen justified her change of heart with the war. “We all want peace. To achieve this, Ukraine must be in a position of strength – on the battlefield and at the negotiating table.” Aid to Ukraine also corresponds to the EU’s priorities, said von der Leyen. However, this is no longer entirely true: Hungary, the Czech Republic and Slovakia pulled out of the EU summit.
anger and strife
The three naysayers also do not want to contribute to the costs of the loan. The burden will therefore be shared among the remaining 23 EU countries that have decided on “enhanced cooperation”. What that means in concrete terms is still unclear. Because initially there are no costs. The Ukraine loan, worth a total of 90 billion euros, is secured through the EU budget.
The interest of three to four billion euros per year should also be paid from the community budget. But that could still cause trouble, because the new budget framework for 2028 to 2034 is only just being negotiated. There is also a looming dispute over arms spending. France demands that Ukraine buy its weapons only in Europe. However, the EU Commission wants to allow exceptions.
Another unresolved problem is loan repayment. Ukraine only has to pay if it receives reparations from Russia. If this does not happen, Brussels reserves the right to use the Russian assets frozen in the EU for repayment. Merz had also called for this – but his request is now only included as a footnote in the EU plans.
Moscow is standing in the way
The dispute over the use of Russian funds has still not been resolved. Belgium, where most of the “Russian assets” are located, continues to oppose access. Russia is also taking a stand – Moscow does not want to pay reparations. This means that the costs of aid to Ukraine will ultimately remain with the EU. From today’s perspective, no repayment is expected.
At the moment it is not even certain whether there will be enough money to save Ukraine from impending bankruptcy. According to the EU Commission, at least 135 billion euros are needed for this. When asked who should raise the missing 45 billion, the authority responded evasively. “We expect international partners to do their part,” said EU Economic Commissioner Valdis Dombrovskis.
There are already verbal commitments from Great Britain and Canada. But the USA no longer wants to give money to Ukraine. Therefore, the country’s financial rescue remains uncertain – despite the new EU debt.