The European Commission is intensifying pressure on member states to swiftly finalize a proposed €60 billion loan package for Ukraine, warning that failure to do so risks triggering a severe financial crisis for Kyiv. EU Commissioner for Economy Valdis Dombrovskis, in remarks to Handelsblatt, emphasized the urgency, stating that reaching an agreement is “absolutely crucial” at this juncture.
The Commission anticipates presenting a formal proposal by mid-November, contingent upon approval from EU heads of state during this week’s pivotal summit. The funds, Dombrovskis stressed, must be available by the start of the second quarter of next year to bridge a critical funding gap.
The stalemate with Hungary, a persistent obstacle to unanimous agreement, hasn’t deterred the Commission. Dombrovskis indicated a willingness to proceed with the financing plan without Hungarian participation, citing past precedents of moving forward with an EU-26 format. This prospect highlights the growing frustration within the Commission regarding Hungary’s continued obstructionism and raises questions about the bloc’s ability to act decisively on a matter of such strategic importance.
Adding further context to the scale of Ukraine’s economic challenge, Dombrovskis estimated the nation’s funding gap for its state budget through 2026 and 2027 at approximately €60 billion, a figure that he conceded is roughly equivalent to Ukraine’s military expenditure, totalling a staggering €120 billion. The Commissioner acknowledged that Europe will be responsible for bearing the “lion’s share” of this burden, raising concerns about the potential strain on national budgets and fueling debate about equitable burden-sharing within the EU. The continued reliance on European support also prompts critical examination of Ukraine’s long-term economic sustainability and its capacity to reduce dependence on external funding.
