The European Union will issue debt worth 90 billion euros (about 105,000 million dollars at the current exchange rate) to deliver it interest-free loan to Ukraine. This money will help Kiev sustain itself for another two years, both by financing its current expenses and by financing its current expenses the attempt to contain Russia militarily.
The decision was taken this Friday after three in the morning after a long summit of European leaders, a decision that many analysts fear They thought it was politically impossible There is also good news for the European Union and especially for Ukraine on Thursday morning.
The conclusions are varied. Europe understands that the United States is no longer an ally but an adversary. And We cannot rely on Washington to keep Russia in check. President Donald Trump has cut the American financial tap to Kiev, but the Europeans are maintaining it and increasing it to fill the hole left by Trump. There is political will to resist Russiaalthough there is none in the United States.
This is the second lesson of this summit There is no fear of standing up to Russia’s threats. When Russia began its military aggression against Ukraine, the Europeans blocked it 210 billion euros in state assets Russians, deposited in European banks. Despite recurring threats from Moscow, they decided this week that this money would not only be used remains blockedbut will be confiscated unless Russia pays war reparations, which no one expects.
This is the third lesson the excuse to finance Ukraine It serves to take a step forward in European integration. For decades, the impossibility of taking on common European debt was considered an irrefutable law. Germany is aware that, due to the size of its economy, it is the primary guarantor of this debt and has always viewed it with caution.
Berlin gave in after the pandemic, but he repeated actively and passively that it was an extraordinary moment and that it would not be repeated. On Thursday he gave in again, even though there were other ways to finance Kiev.
The European Commission will go to the markets again to reach this 90 billion euros, and is supported by a part of the European budget financed by the Member States depending on their size and economic situation, thereby making Germany again the main guarantor.
Ukraine leaves Brussels, where its President Volodymyr Zelensky was on Thursday, with very good news after months of receiving blows, especially from Washington. This loan is interest free and what’s more You will most likely never have to return it.. The agreement provides for the return of this money only if Moscow pays war reparations to Kiev. If Moscow doesn’t pay, which is most likely the case, Kiev will never have to pay back.
Germany had denied the possibility of new debt for days, and the president of the European Commission (German Ursula von der Leyen from the CDU, the same party as the German leader) claimed it was illegal to do so without an agreement between 27 member states, which diplomatic sources denied.
The agreement denies this because it takes place on 24 (Slovakia, Hungary and the Czech Republic with pro-Russian governments opt out), thereby breaking another taboo.
The solution found at the summit also has the advantage of keeping the more than 200 billion euros in Russian assets confiscated, which can be used within two years to continue supporting Ukraine or to help it rebuild after the end of the war.
Europe is providing the money and the deal is not cheap, but diplomats have been happy to repeat since 2022 that it would be much more expensive not to support Ukraine and allow it to fall into Russia’s hands, because there is no guarantee that if Moscow were to take over Ukraine, it would not move towards the Baltics, Poland or Romania.
The summit was ultimately a surprise for those who expected failure and probably a surprise in the eyes of Washington and Moscow. Ukraine takes more than 100 billion dollars that it does not have to return, Russia definitely loses more than 200 billion dollars that Europe confiscates, and the Europeans find a way to leave aside the countries that are vulnerable to Russia.
Moscow has been repeating this for months Europe is tired of supporting Ukraine and hoping that this support would decline without Washington’s support. But on Thursday evening, European leaders gave Ukraine another two years. Zelensky has space. For now, Europe is letting you decide how much you want to resist.
The European Union does not want to lose Ukraine and does not want Russia to believe that can change European maps at will. Europe has the money, but has so far had to prove that it also has the will to use it not only without Washington’s permission, but also against the plans of Donald Trump, who is pushing for Ukraine’s capitulation, which would now be a price for Russia. Almost at three in the morning, 24 of the 27 European heads of state and government showed this will. The economic giant is not always a political dwarf.
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