European Commission proposes €45 billion for Ukraine in 2027
The European Commission proposed allocating the remaining €45 billion of its Ukraine Support Loan in 2027, with most earmarked for defence industrial capacity. Member states must approve the proposal in the Council before payments can start. The allocation forms the second year of an existing €90 billion programme covering defence and essential public services.
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Defence capacity receives the larger allocation
The European Commission proposed on October 30 that member states approve €45 billion for Ukraine in 2027 under the Ukraine Support Loan, the European Union’s two-year lending programme. Of the proposed allocation, €31.7 billion would support defence industrial capacity and the remainder would provide budget assistance. The latter would be divided equally between the Ukraine Facility, an EU support instrument, and Macro-Financial Assistance, its budget-financing channel.[1], [2]
Council approval precedes payments
Ukraine submitted its financing strategy on October 26. The Commission’s positive assessment preceded this proposal, which now goes to the Council, where EU member states decide the allocation. The Commission aims to make payments possible in early 2027 after approval, with the remaining assistance provided by December 31, 2027. Budget support carries conditions on the rule of law, anti-corruption, economic resilience and sustainability, together with safeguards for the EU’s financial interests.[1], [2]
The loan programme covers two years
The European Parliament and Council established the €90 billion programme in February. It covers 2026 and 2027, financing defence capabilities, defence industrial capacity, essential public services and the state’s functioning. The Council approved the 2026 allocation on April 23. According to the Commission, €19.8 billion of that year’s assistance has already been disbursed, including support for defence procurement and budget financing.[1]
