EU Faces €135 Billion Ukraine Funding Gap Amidst Escalating Tensions
Ursula von der Leyen has urged EU countries to agree by December on a plan to provide Ukraine with €135.7 billion in military and financial aid over the next two years. The European Commission President outlined three potential options, including voluntary member state contributions, joint debt at the EU level, and a reparations loan based on Russia’s frozen assets. While the first two options would increase the fiscal burden, the reparations loan faces legal complexities and concerns about perceptions of confiscation, especially regarding a large sum held in Belgium. Von der Leyen stresses the urgency of a decision, as the EU leaders will meet in December, and suggests that the options can be combined or used sequentially to avoid aid disruption.
John Q. Hosedrinker