Overview
- The European Commission presented a legal proposal for a €90 billion EU budget‑backed loan for 2026–2027, structured under enhanced cooperation with 24 of 27 member states.
- Two thirds (€60 billion) would fund defense needs and one third (€30 billion) would provide budget support tied to reform benchmarks that advance Ukraine’s EU path.
- Defense purchases would follow a cascade that prioritizes suppliers in Ukraine, the EU and EEA/EFTA, with buying outside the region allowed only if necessary or time‑critical.
- The Commission said Ukraine would not begin repayment until Russian reparations are made and it reserves the right to use frozen Russian assets to cover losses.
- Czechia, Hungary and Slovakia will not take part in implementation, as an Estonian minister urged continued European financing despite domestic budget strains and pressure on allied unity.