Yesterday (Dec 19, 2025), after a marathon of late-night talks, leaders of the European Union greenlit a €90 billion loan to keep Ukraine's military and economy running through 2027. Think of it as a massive group gift wrapped in bonds and backed by EU budget headroom. 🤝💶
But here's the twist: not all 27 members are on board. The Czech Republic, Hungary and Slovakia opted out of the guarantee—so it's really a coalition of 24. Hungarian Prime Minister Viktor Orban even tweeted that they've dodged grants disguised as loans. #DramaAlert
How will it work? The EU will borrow the money on capital markets and cover the interest cost from its budget, so Ukraine pays zero interest. The deal replaces a more controversial reparations loan plan that would have used frozen Russian assets. That idea is dead, done and dusted, says Orban, but some leaders still want frozen assets on the table as backup.
Is €90 billion enough? Ukrainian President Volodymyr Zelenskyy warns that without solid funding, Kyiv could run out of cash in months. The IMF says Ukraine needs about €135 billion just for 2026–27. Analysts at Germany's Kiel Institute worry new aid in 2025 might sink to its lowest since 2022. Yikes.
And it gets spicier: contributions aren't equal. Nordic states lead relative to their GDP, while Italy and Spain lag behind. Zhao Yongsheng, director at China's University of International Business and Economics, says Europe may need 2.5–3 times this amount next year to stabilize the front lines—especially if U.S. support dips.
In short, this €90 billion package is a critical lifeline—but it might just be the opening chapter. With big needs and big opinions all around, the story is far from over. 🌍✨
Reference(s):
EU approves 90-bln-euro loan for Ukraine amid internal divisions
cgtn.com
