Ursula von der Leyen is urging European Union member states to adopt a plan to cover Ukraine’s estimated €135.7 billion financing gap for 2026-2027. According to the Commission president, there is no easy solution, but reaching an agreement at the next European Council meeting is essential.
The Commission president has written to the leaders of the 27 EU member states, outlining options to close a major budget shortfall. At its heart is support for Ukraine.
In von der Leyen’s letter, she detailed three possible options: bilateral, non-repayable grants from member states; a joint EU-issued loan; and a so-called “compensation loan” based on the liquid yield of Russian state assets frozen in the EU.
The second option, because it has implications for the EU budget, requires unanimous approval—something Hungary regularly opposes. The third is being blocked by Belgium, since most frozen Russian assets are managed by the Brussels-based clearing house Euroclear, and ‘weak’ Belgian Prime Minister Bart De Wever fears retaliation from Moscow.
According to the figures cited in the letter, Ukraine would need €83.4 billion for military expenditures next year, and an additional €55.2 billion for economic stabilisation, maintaining state functions, and restoring budget balance. The Commission warns that the economic burden of the war is unsustainable without substantial EU assistance.
Von der Leyen cautioned that Europe has no time for delays or prolonged negotiations, as funding must begin to flow by the second quarter of 2026. “There is no perfect option,” she said, but a lack of political will would endanger both Ukraine’s stability and the EU’s credibility.
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