The European Commission is urgently pushing for a swift agreement among member states regarding the proposed €60 billion loan package for Ukraine, warning of impending financial crisis for Kyiv if the funding is delayed. European Commissioner for Economy, Valdis Dombrovskis, conveyed the critical nature of the situation in an interview with the Handelsblatt, emphasizing that failure to secure the deal would severely jeopardize Ukraine’s ability to sustain essential functions.
According to Dombrovskis, the Commission is prepared to table a formal proposal as early as mid-November, contingent upon a positive endorsement from EU leaders at Thursday’s summit. He stressed that the funds must be accessible by the beginning of the second quarter of next year to address the significant shortfall in Ukraine’s state budget.
The push comes amidst ongoing political maneuvering, particularly concerning Hungary’s continued reluctance to endorse the plan. Dombrovskis, however, expressed optimism that a solution could be found even without Budapest’s agreement, hinting at a potential “EU-26” approach – proceeding with the financing through a coalition of 26 member states if necessary. This suggestion highlights the growing fractures within the Union regarding the level of financial commitment to Ukraine and raises questions about the efficacy of unanimous decision-making in times of escalating geopolitical crisis.
The Commissioner revealed that Ukraine’s estimated financing gap for its state budget spanning 2026 and 2027 amounts to approximately €60 billion, a figure roughly equivalent to its military expenditures, totaling €120 billion overall. Dombrovskis acknowledged that Europe will bear the “lion’s share” of this immense financial burden, prompting scrutiny of the economic implications for individual member states and fueling debates on alternative funding models and the long-term sustainability of European support for wartime Ukraine. The situation underscores a deeper political quandary: balancing humanitarian and security imperatives with domestic economic realities across the diverse landscape of the European Union.