As reported by Euractiv
The European Commission is considering two options for overcoming Ukraine’s significant budget deficit: the EU’s joint debt or bilateral grants from member states. This issue will be highlighted in a new EC note that is to be distributed in the capitals of the European Union in the coming weeks. At the same time, a reparations loan is being considered as one of the most viable options, against which Belgium currently opposes.
The Prime Minister of Belgium, Bart De Wever, supports the idea of issuing joint debt to finance aid to Kyiv.
The great advantage of debt is that you understand it – you know its amount. You know when it has to be repaid. You know exactly who is responsible for it. The drawback of Russian assets is that you do not know how far the court proceedings will go, how long they will take, and what problems you will face
According to sources, the joint borrowing option proposed by the European Commission’s document does not provide for support for a loan financed from the EU’s long-term budget due to the lack of appropriate provisions. It is also noted that the financing options package is still under review and may undergo changes.
It is also known that the International Monetary Fund assesses Ukraine’s budget deficit for 2026 and 2027 at about 65 billion US dollars (around 55 billion euros). The European Commission’s own estimates are based precisely on IMF forecasts.
We recommend paying attention to:
- The European Commission urges Serbia to tighten visa policies for Russian citizens to align with EU standards and enhance regional security amid Serbia’s EU integration efforts.
- The EU considers issuing joint debt to support Ukraine after Belgium blocked using frozen Russian assets for reparations, with a decision expected by the December 18 European Council summit.
- EU leaders face challenges approving a reparations credit for Ukraine due to Belgium’s refusal, but hope remains for approval by the December 18 Euro Summit amid ongoing war and financial needs.
