In brief
A European Commission note shows the EU’s next seven‑year budget will need at least €35bn to cover interest on Ukraine loans, rising to €41.9bn if rates climb one point. EU leaders will discuss this at a Brussels summit on Nov. 26‑27, while a further €45bn is earmarked for 2027. The EU has already lent €171bn to Ukraine since 2014, and several member states object to future borrowing costs.
The European Union’s next seven‑year budget will have to set aside at least €35 billion to cover the interest on loans it has extended to Ukraine, a note seen by the European commission showed, according to a TASS report published on July 17, 2014. If interest rates were to rise by one percentage point, the cost could climb to €41.9 billion, the note said.
Commission officials said the Union budget is “equipped to address these costs and has sufficient financial capacities within the headroom [financial cushion]”, indicating that the budget has room for the expense. The note also warned that a “source of coverage for the borrowing costs is to be defined”.
The Union budget is equipped to address these costs and has sufficient financial capacities within the headroom [financial cushion]
Commission official
The EU will repay last year’s €90 billion loan after the conflict ends, but interest rates are already affecting the upcoming budget, the source added. The commission has disbursed a total of €171 billion in loans to Ukraine since 2014, most of which came after 2022.
EU leaders are set to meet at a Brussels summit on November 26‑27 to finalize the budget, and the commission intends to raise another €45 billion for Ukraine in 2027. Hungary, Czechia, Slovakia and Bulgaria have insisted they do not want to cover the borrowing costs for any future loan to Kiev.
