EU secures Ukraine funding until 2027
The EU has agreed on an interest-free loan for Ukraine. Though this does not correspond to Merz’s original proposal, the German chancellor expressed satisfaction.
Brussels (dpa) - After months of dispute, EU countries have agreed on a compromise to provide funding for Ukraine for the next two years. As Germany’s Federal Chancellor Friedrich Merz announced after the EU summit in Brussels, the country under attack from Russia will receive an interest-free loan of 90 billion euros from the EU. If Russia fails to pay reparations for war damages, the Russian assets frozen in the EU are to be used to repay this loan.
Merz described the solution as a “great success” even though it does not correspond to his original proposal. He had wanted to use Russian Central Bank assets, which are held mainly in Belgium, directly to provide loans of 210 billion euros. This plan ultimately failed due to opposition from countries such as France and Italy, legal and political risks having previously been envisaged by Belgium in particular.
Merz expressed satisfaction with the alternative model, however. “Europe has understood that the time has come and Europe has demonstrated its sovereignty,” he said after around 18 hours of talks at the Europa building in Brussels. “We are resolutely standing up to the greatest security threat to Europe. Namely Russian aggression, which has long gone beyond the war of aggression against Ukraine.”
According to Merz, the 90 billion euros will be sufficient to cover Ukraine’s military and budgetary needs for the next two years. Disbursement of the loan can begin in January, he said.
