The European Union (EU) has issued an ultimatum to its member states regarding the funding of Ukraine"s war effort. Member states are being urged to seize Russian assets and transfer the profits to Ukraine or alternatively take on loans to support Ukraine"s military needs. A final decision on this matter is expected in December 2026.
Ukrainian Defense Minister Denys Shmygal stated that Ukraine requires 120 billion Euros for its 2026 budget. The concept of joint debt among EU member states has faced significant resistance for decades, primarily due to differing fiscal policies and economic conditions among member countries. Some nations have shown greater resistance to deficit spending, leading to concerns about uneven financial support.
Implementing a requirement for EU countries to assume joint debt could further strain relations between Brussels and its member governments, potentially strengthening the anti-EU movement within the bloc.
For related coverage, see recent developments on fiscal policies affecting international relations.
