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European Parliament Approves Activation of Enhanced Cooperation for €90 Billion Ukraine Loan

The measure awaits formal sign-off by the Council of the EU before taking effect.

Overview

  • Lawmakers endorsed a Council decision enabling a €90 billion loan to Ukraine for 2026–2027 under the EU’s enhanced cooperation mechanism.
  • The package would be financed through EU borrowing on capital markets backed by budget headroom.
  • The decision text sets a target for disbursement of the assistance by the second quarter of 2026 at the latest.
  • It specifies that using EU budget resources as guarantees will not affect the financial obligations of Czechia, Hungary or Slovakia.
  • Two related draft laws now move to conciliation with final European Parliament votes expected at the 9–12 February plenary, following approval of an urgent procedure on 20 January.