Overview
- The European Commission tabled draft legislation for a €90 billion, interest-free loan to Ukraine in 2026–27, allocating €60 billion for defence and €30 billion for budget support and financing it through EU-level borrowing by 24 participating states.
- The proposal establishes a procurement cascade that prefers supplies from Ukraine, the EU and EEA, with case-by-case exceptions for third-country purchases when European options are unavailable or too slow.
- France is pressing for strict Buy-European rules to bolster EU industry, while Germany and the Netherlands seek flexibility to access U.S.-made systems such as Patriot air defence, F-16 munitions and HIMARS.
- The Netherlands has suggested reserving at least €15 billion for capabilities not immediately available in Europe, a stance most EU countries reportedly support over France’s stricter approach.
- Interest costs estimated at €3–4 billion annually would be covered by the EU budget, repayment is conditional on Russian reparations, and the use of frozen Russian assets remains only a contingency as legal and cost details are still being negotiated.