On October 23, European Union leaders pledged to finance Ukraine for the next two years. But that immediately raised a pressing question: where would the money come from? EU leaders will meet in Brussels on December 18, where they are expected to take a final decision.

Most EU governments are already grappling with high public debt. Raising more funds from financial markets would be both economically burdensome and politically unpopular.

Since Russia invaded Ukraine in February 2022, EU governments have spent roughly $230 billion on assistance. Last year, the bloc raised $54 billion for Ukraine using its budget as collateral. But the loan appeared as additional debt on the EU’s books. Any new loan would add to the EU’s collective debt burden, worsening the bloc’s borrowing position. More

See Full Page