Ukraine Becomes an Economic Headache for the EU Again

Ukraine is asking for more money from an economically pressured European Union, only months after 24 of the bloc's 27 countries approved a €90 billion loan intended to support its economy this year and next.

The issue will return to the center of EU discussions at ministerial meetings in Ireland this week. Irish Foreign and Defence Minister Helen McEntee said support for Ukraine remains vital politically, economically and militarily after what she described as severe civilian losses over the summer.

Ukraine's Defense Ministry already faces a €23 billion shortfall, including money needed to buy Patriot missiles and other air-defense equipment. The article links the gap to Russia's continuing drone and missile attacks, which have repeatedly targeted Ukrainian civilians over the summer. Zelenskyy has also warned that Ukraine will lack €45 billion in financing next year.

The €90 billion EU loan was expected to cover two-thirds of Ukraine's needs this year and next. Other international donors outside the EU were supposed to provide the remaining third. EU governments had therefore expected their financial commitments to carry Ukraine through 2028, but support from some G7 partners has lagged. Britain and Norway have contributed, while Japan, Canada and the International Monetary Fund have provided less support than expected. U.S. President Donald Trump has previously said he would not pay for the continuing war and has pressed for it to end quickly.

The timing is especially difficult for Brussels. EU governments are due to negotiate the next long-term budget in the autumn, after the bloc took on substantial debt during the coronavirus crisis. The European Commission's spring forecast expects 22 of the 27 EU countries to run public-sector deficits this year. France's debt could reach 120% of gross domestic product next year, twice the level permitted by EU rules, adding to the pressure on governments asked to find more money for Ukraine.

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We have seen serious losses of civilian lives over the summer. Therefore, the need to support Ukraine politically, economically and militarily is essential.