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EU plans to raise €90 billion in joint debt for Ukraine — here’s how

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EU plans to raise €90 billion in joint debt for Ukraine — here’s how

Reparations loan is out, joint debt is in. That is the agreement that the 27 leaders of the European Union reached at their make-or-break summit this week.

With the reparations loan ruled out for good, the bloc turns to common borrowing to raise €90 billion to meet Ukraine’s budgetary and military needs for the next two years.

It is a simpler, faster and more predictable solution compared to the high-risk scheme of using the immbolised Russian assets. But joint debt is expensive, and immediately so.

Here’s what you need to know about the plan.

Back to the markets

Since neither the EU nor its member states have €90 billion at their disposal at the moment, the European Commission will go to the markets and raise the money from scratch by issuing a mix of short-term and long-term bonds.

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The €90 billion will be gradually dolled out to ensure a steady flow of assistance to Ukraine, which needs a fresh tranche as early as April. The country will be able to use the funds for both military and budgetary purposes for greater flexibility.

In the meantime, the EU budget will absorb the interest rates to spare Ukraine, already heavily indebted, from any additional burden. The Commission estimates that, under current rates, the interest payments will amount to €3 billion per year. This means the next EU budget (2028-2034) will have to make space for about €20 billion.

Member states will share the interest according to their economic weight. Germany, France, Italy, Spain and Poland will carry the highest costs.

According to Commission officials, the €90 billion will not count towards domestic levels of debt because the issuance will be done exclusively at the EU level.

Forever roll-over

Under a non-recourse loan agreement, Ukraine will be asked to pay back the €90 billion only after Russia ceases its war of aggression and agrees to pay war reparations.

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Given that Moscow has emphatically ruled out the possibility of any compensation, the Commission is already prepared to roll out the liability over time so that Ukraine does not have to pay out of pocket, which will be painful after suffering so much devastation.

“The assumption is, today it’s a non-recourse loan to Ukraine that is only paid back when reparations are there, and therefore this debt is going to be rolled over up until then,” a senior Commission official explained.

But will the roll-over continue for eternity?

That seems unlikely. At some point in the future, the EU will have to settle the fate of the €90 billion to stop paying interest rates. The go-to method will be the EU budget, which will act as the ultimate guarantor to ensure investors are always paid back.

The three opt-outs

The reason why joint debt for Ukraine is now possible is that, as first reported by Euronews during the summit, Hungary, Slovakia and the Czech Republic agreed to refrain from vetoing in exchange for being exempted.

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This is key because under current rules, the EU budget cannot be used to raise money for a non-EU country. Any changes to that effect will require unanimous approval.

Hungary, Slovakia and the Czech Republic will commit to that unanimity. In return, the bloc will activate the so-called “enhanced cooperation” mechanism to spare them from any costs and responsibilities associated with the €90 billion.

The other 24 countries will take over their share of the interest. But the change will be minimal because the three opt-outs only amount to 3.64% of the bloc’s GNI.

The exemption will also be institutional. Once the budget rules are amended and the “enhanced cooperation” is triggered, the three countries will lose their voting rights to approve the regulation that will establish the new assistance programme.

In practice, they will be strictly removed from the initiative.

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Strings attached

The Commission intends to recycle the now-discarded proposal of the reparations loan to set up the €90 billion common borrowing.

As a result, Ukraine will be subject to the same conditions to receive the funds.

One of them is a “no rollback” clause that will link the aid to the anti-corruption measures that Kyiv must implement to advance in its EU accession bid. The country was recently shaken by a corruption scandal in the energy sector that precipitated numerous resignations, including that of Andriy Yermak, President Zelenskyy’s chief of staff.

If Kyiv takes a step back on the fight against corruption, as it briefly did in the summer when it undermined the independence of two anti-corruption agencies and prompted widespread protests, payments will be suspended.

There will also be safeguards to strengthen oversight on how Ukraine allocates defence contracts, which have been a source of controversy in the past.

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Additionally, there will be “Made In Europe” criteria to ensure the €90 billion fosters Ukraine’s and Europe’s domestic defence industries. Only when the equipment is not readily available on the continent will purchases outside Europe be allowed.

Assets still on the table

Resorting to joint debt means the cash balances from the Russian assets will not be touched, as was originally planned in the reparations loan.

However, in their conclusions, EU leaders say they reserve “the right” to tap the assets, or at least try, sometime in the future, as a way to repay the €90 billion borrowing.

“For me, it’s very difficult and very premature today to say how this will be translated in actual terms,” a senior Commission official said when asked about the meaning.

“I think the message is pretty political, which is to say that the option to use the cash balance assets of the Russian Central Bank is not off the table.”

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The addition of the assets into the final wording is considered a way to placate those countries that were most vocally supportive of the reparations loan, particularly Germany, and had publicly ruled out the idea of common borrowing.

President Zelenskyy hailed the decision as an “important victory” for his country.

“Without these funds, it would be very difficult for us. In any case, this is tied to Russian reparations,” he said. “For us, this is a reinforcement. It is a signal to the Russians that there is no point for them to continue the war because we have financial support, and therefore, we will not collapse on the front line. We will support our army and our people.”

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U.S. President Donald Trump on Friday said he was directing every federal agency to immediately cease all use of Anthropic’s technology, adding there would be a six-month phase out for agencies such as the Defense Department who use the company’s products.
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UN Human Rights Council chief cuts off speaker criticizing US-sanctioned official

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UN Human Rights Council chief cuts off speaker criticizing US-sanctioned official

NEWYou can now listen to Fox News articles!

The United Nations Human Rights Council (UNHRC) abruptly cut off a video statement after the speaker began criticizing several United Nations officials, including one who has been sanctioned by the Trump administration. The video message was being played during a U.N. session in Geneva, Switzerland, Friday morning.

Anne Bayefsky, director of the Touro Institute on Human Rights and the and president of Human Rights, called out several U.N. officials in her message, including U.N. High Commissioner for Human Rights Volker Türk and special rapporteur Francesca Albanese, who is the subject of U.S. sanctions.

Secretary of State Marco Rubio announced sanctions against Albanese July 9, 2025, saying that she “has spewed unabashed antisemitism, expressed support for terrorism and open contempt for the United States, Israel and the West.”

“That bias has been apparent across the span of her career, including recommending that the ICC, without a legitimate basis, issue arrest warrants targeting Israeli Prime Minister Benjamin Netanyahu and former Defense Minister Yoav Gallant,” Rubio added.

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Secretary of State Marco Rubio and Francesca Albanese  (Getty Images)

“I was the only American U.N.-accredited NGO with a speaking slot, and I wasn’t allowed even to conclude my 90 seconds of allotted time. Free speech is non-existent at the U.N. so-called ‘Human Rights Council,’” Bayefsky told Fox News Digital.

Bayefsky noted the irony of the council cutting off her video in a proceeding that was said to be an “interactive dialogue,” an event during which experts are allowed to speak to the council about human rights issues.

“I was cut off after naming Francesca Albanese, Navi Pillay and Chris Sidoti for covering up Palestinian use of rape as a weapon of war and trafficking in blatant antisemitism. I named the prosecutor of the International Criminal Court, Karim Khan, who is facing disturbing sexual assault allegations but still unaccountable almost two years later. Those are the people and the facts that the United Nations wants to protect and hide,” Bayefsky told Fox News Digital.

“It is an outrage that I am silenced and singled out for criticism on the basis of naming names.”

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Bayefsky’s statement was cut off as she accused Albanese and Navi Pillay, the former chair of the U.N. Independent International Commission of Inquiry on the Occupied Palestinian Territory; and Chris Sidoti, a commissioner of the U.N. Independent International Commission of Inquiry on the Occupied Palestinian Territory. She also slammed Khan, who has faced rape allegations. Khan has denied the sexual misconduct allegations against him.

Had her video message been played in full, Bayefsky would have gone on to criticize Türk’s recent report for not demanding accountability for the “Palestinian policy to pay to kill Jews, including Hamas terror boss Yahya Sinwar who got half a million dollars in blood money.”

When the video was cut short, Human Rights Council President Ambassador Sidharto Reza Suryodipuro characterized Bayefsky’s remarks as “derogatory, insulting and inflammatory” and said that they were “not acceptable.”

“The language used by the speaker cannot be allowed as it has exceeded the limits of tolerance and respect within the framework of the council which we all in this room hold to,” Suryodipuro said.

The Human Rights Council at the United Nations in Geneva, Switzerland, Feb. 26, 2025. (Denis Balibouse/Reuters)

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In response to Fox News Digital’s request for comment, Human Rights Council Media Officer Pascal Sim said the council has had long-established rules on what it considers to be acceptable language.

“Rulings regarding the form and language of interventions in the Human Rights Council are established practices that have been in place throughout the existence of the council and used by all council presidents when it comes to ensuring respect, tolerance and dignity inherent to the discussion of human rights issues,” Sim told Fox News Digital.

When asked if the video had been reviewed ahead of time, Sim said it was assessed for length and audio quality to allow for interpretation, but that the speakers are ultimately “responsible for the content of their statement.”

“The video statement by the NGO ‘Touro Law Center, The Institute on Human Rights and The Holocaust’ was interrupted when it was deemed that the language exceeded the limits of tolerance and respect within the framework of the council and could not be tolerated,” Sim said.

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“As the presiding officer explained at the time, all speakers are to remain within the appropriate framework and terminology used in the council’s work, which is well known by speakers who routinely participate in council proceedings. Following that ruling, none of the member states of the council have objected to it.”

Flag alley at the United Nations’ European headquarters during the Human Rights Council in Geneva, Switzerland, Sept. 11, 2023. (Denis Balibouse/File Photo/Reuters)

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While Bayefsky’s statement was cut off, other statements accusing Israel of genocide and ethnic cleansing were allowed to be played and read in full.

This is not the first time that Bayefsky was interrupted. Exactly one year ago, on Feb. 27, 2025, her video was cut off when she mentioned the fate of Ariel and Kfir Bibas. Jürg Lauber, president of the U.N. Human Rights Council at the time, stopped the video and declared that Bayefsky had used inappropriate language.

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Bayefsky began the speech by saying, “The world now knows Palestinian savages murdered 9-month-old baby Kfir,” and she ws almost immediately cut off by Lauber.

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“Sorry, I have to interrupt,” Lauber abruptly said as the video of Bayefsky was paused. Lauber briefly objected to the “language” used in the video, but then allowed it to continue. After a few more seconds, the video was shut off entirely. 

Lauber reiterated that “the language that’s used by the speaker cannot be tolerated,” adding that it “exceeds clearly the limits of tolerance and respect.”

Last year, when the previous incident occurred, Bayefsky said she believed the whole thing was “stage-managed,” as the council had advanced access to her video and a transcript and knew what she would say.

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Did the EU bypass Hungary’s veto on Ukraine’s €90 billion loan?

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Did the EU bypass Hungary’s veto on Ukraine’s €90 billion loan?

A post on X by European Parliament President Roberta Metsola has triggered a wave of misinformation linked to the EU’s €90 billion support loan to Ukraine, which is designed to help Kyiv meet its general budget and defence needs amid Russia’s ongoing invasion.

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Hungary said earlier this week that it would block both the loan — agreed by EU leaders in December — and a new EU sanctions package against Moscow amid a dispute over oil supplies.

Shortly afterwards, Metsola posted on X that she had signed the Ukraine support loan on behalf of the parliament.

She said the funds would be used to maintain essential public services, support Ukraine’s defence, protect shared European security, and anchor Ukraine’s future within Europe.

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The announcement triggered a wave of reactions online, with some claiming Hungary’s veto had been ignored, but this is incorrect.

Metsola did sign the loan on behalf of the European Parliament, but that’s only one step in the EU’s legislative process. Her signature does not mean the loan has been definitively implemented.

How the process works

In December, after failing to reach an agreement on using frozen Russian assets to fund Ukraine’s war effort, the European Council agreed in principle to provide €90 billion to help Kyiv meet its budgetary and military needs over the next two years.

On 14 January, the European Commission put forward a package of legislative proposals to ensure continued financial support for Ukraine in 2026 and 2027.

These included a proposal to establish a €90 billion Ukraine support loan, amendments to the Ukraine Facility — the EU instrument used to deliver budgetary assistance — and changes to the EU’s multiannual financial framework so the loan could be backed by any unused budgetary “headroom”.

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Under EU law, these proposals must be adopted by both the European Parliament and the European Council. Because the loan requires amendments to EU budgetary rules, it ultimately needs unanimous approval from all member states.

Metsola’s signature therefore does not amount to a final decision, nor does it override Hungary’s veto.

The oil dispute behind Hungary’s opposition

Budapest says its objections are linked to a dispute over the Druzhba pipeline, a Soviet-era route that carries Russian oil via Ukraine to Hungary and Slovakia.

According to the Centre for Research on Energy and Clean Air (CREA), Hungary and Slovakia imported an estimated €137 million worth of Russian crude through the pipeline in January alone, under a temporary EU exemption.

Oil flows reportedly stopped in late January after a Russian air strike that Kyiv says damaged the pipeline’s southern branch in western Ukraine. Hungary disputes this, with Prime Minister Viktor Orbán accusing Ukraine of blocking it from being used.

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Speaking in Kyiv alongside European Commission President Ursula von der Leyen and European Council President António Costa, Ukraine’s President Volodymyr Zelenskyy said the pipeline had been damaged by Russia, not Kyiv.

He added that repairs were dangerous and could not be carried out quickly without putting Ukrainian servicemen in danger.

Tensions escalated further after reports that Ukraine struck a Russian pumping station serving the pipeline. Orbán responded by ordering increased security at critical infrastructure sites, claiming Kyiv was attempting to disrupt Hungary’s energy system.

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