EU leaders have just given the green light to a massive €90 billion loan package for Ukraine, but not everyone’s on board 🤔. Here’s the lowdown on what went down and what’s next.
1. Big support with a catch
The EU will borrow jointly on capital markets, backed by unused budget “headroom.” This means lower interest for Ukraine, as the EU budget will cover the costs 💸. But to get unanimous approval, the Czech Republic, Hungary and Slovakia opted out, forming a “coalition of 24” within the 27-member bloc.
2. Unity amid friction
Hungarian PM Viktor Orban even tweeted that it’s “grants disguised as loans” and that his country stayed out. Yet leaders like Germany’s Chancellor Friedrich Merz and Commission President Ursula von der Leyen pushed hard for the deal, stressing urgency and solidarity 🤝.
3. Is €90 billion enough?
Not really. Ukrainian President Volodymyr Zelenskyy warns funds could run dry in months. The IMF pegs Ukraine’s needs at about €135 billion for 2026–27, leaving a €45 billion gap. Data from Germany’s Kiel Institute also flags uneven burden-sharing across Europe.
4. Looking ahead
Some EU voices want to revisit using frozen Russian assets as collateral. Zhao Yongsheng from the University of International Business and Economics in Beijing says Europe may need 2.5–3× this sum in 2026 to stabilize the front lines. Could the reparations idea make a comeback? Stay tuned ⚡️.
👉 What do you think of the EU’s plan? Let us know in the comments!
Reference(s):
EU approves 90-bln-euro loan for Ukraine amid internal divisions
cgtn.com
