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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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US positions aircraft carriers, strike platforms across Middle East as Iran talks shift to Oman

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US positions aircraft carriers, strike platforms across Middle East as Iran talks shift to Oman

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The U.S. military has bolstered its presence across the Middle East amid escalating tensions with Iran, as nuclear talks were thrown into uncertainty Wednesday before being moved to Oman.

U.S. and Iranian officials had been expected to meet Friday in Istanbul, with several Middle Eastern countries participating as observers.

A senior U.S. official confirmed to Fox News Digital that the talks, focused on restarting negotiations over Iran’s nuclear program, will now take place in Oman.

“The agreement to move forward with this happened only after several Arab country leaders lobbied the Trump administration today – making the case the U.S. should not walk away,” the source said.

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US MILITARY WARNS IRAN IT WILL NOT TOLERATE ANY ‘UNSAFE’ ACTIONS AHEAD OF LIVE-FIRE DRILLS IN STRAIT OF HORMUZ

Satellite imagery shows American military assets at the Muwaffaq Salti Air Base Aoi Two in Jordan as diplomatic efforts continue. (Planet Labs PBC)

Satellite imagery from Plant Labs shows U.S. aircraft, naval vessels and logistical platforms positioned throughout the region at the end of January.

“The military buildup is consistent with a force preparing for a variety of potential strike options,” Philip Sheers, a research associate with the Defense Program at the Center for a New American Security, told Fox News Digital.

Sheers cautioned that visible movements alone do not indicate a strike is imminent, saying “positioning of platforms is not the only precondition to preparedness for a strike.”

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“Additional maintenance equipment, munitions and intelligence, among other elements, may still be needed before a desired strike can be executed,” he said, adding that “operational details will be classified and are difficult to discern based on aircraft and ship movements alone.”

U.S. naval assets in the region include the aircraft carrier strike group centered on the USS Abraham Lincoln, operating in the Arabian Sea, as well as destroyers deployed throughout the eastern Mediterranean and Red Sea region.

USS ABRAHAM LINCOLN AIRCRAFT CARRIER STRIKE GROUP MAKES MOVE AMID THREAT FROM IRAN

Military assets are deployed across the Middle East, including Ospreys Duqm Airport in Oman, as nuclear negotiations are moved amid escalating tensions. (Planet Labs PBC)

The images of Duqm Airport in Oman appear to show a U.S. V-22 Osprey aircraft, which Sheers, who viewed the images, said could support “search-and-rescue missions to recover personnel after a mission.”

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Images from Muwaffaq Salti Airbase in Azraq, Jordan, appear to show C-130 aircraft, which Sheers said could be used for “search and rescue at sea or for other logistics operations.”

“It’s clear that there are multirole combat aircraft stationed here, which would support ground strikes and defensive counterair operations,” Sheers added while stating that helicopters were also visible, though their type, he said, could not be determined from the available imagery.

Sheers also cited the presence of Iran’s Shahid Bagheri drone carrier, saying its potential role could be to “harass, fatigue or distract U.S. surface ships in the area” and force U.S. forces to expend time and munitions defending themselves.

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Satellite images show the Muwaffaq Salti Airbase in Jordan and C-130 aircraft. (Planet Labs PBC)

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Wednesday also saw Secretary of State Marco Rubio say the U.S. would only engage in meaningful talks if they addressed Iran’s ballistic missile program, support for militant groups across the Middle East and its treatment of its own people, in addition to its nuclear activities.

“If the Iranians want to meet, we’re ready. They’ve expressed an interest in meeting and talking. If they changed their mind, we’re fine with that, too. We prefer to meet and talk,” Rubio told reporters at the inaugural Critical Minerals Ministerial meeting at the State Department.

As previously reported by Fox News Digital, U.S. Central Command warned Iran against what it called “escalatory behavior” in international waters, vowing the United States would protect its personnel and assets.

On Tuesday, U.S. forces shot down an Iranian drone that approached the Abraham Lincoln in international waters, according to U.S. Central Command, underscoring rising tensions.

“What is clear is the United States is moving a variety of intelligence, logistics, search and rescue, strike and air defense platforms into the region,” Sheers added.

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“Those are clear signals to Iran of increasing U.S. strike capability, but the potential timing and targets of a possible strike are not clear and may not become clear,” he said.

Fox News’ Gillian Turner contributed to this report.

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Can a social media ban protect children from online violence?

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Can a social media ban protect children from online violence?

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With a dangerous spike in cyberbullying and self-harm content to addictive algorithms, concerns about children’s online lives are mounting across Europe.

Should social media be banned for under-16s across the EU? Could that be the answer?

This week on The Ring, Euronews’ weekly debate show broadcast from the European Parliament in Brussels, MEPs Axel Voss and Christel Schaldemose dive into this very question.

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This week, Spain’s Prime Minister announced plans to introduce a ban on social media for under-16s. Speaking in Dubai, Pedro Sánchez compared online platforms to the “digital wild west” where laws are ignored, and harm goes unchecked.

France, Denmark, Greece, and Ireland are also exploring restrictions raising the potentiality of a fragmented legal landscape unless the EU steps in.

MEPs voted recently on a non-binding report calling for more ambitious EU action. Most want a minimum age of 16 for social media access. Christel Schaldemose of the Socialists and Democrats group, a vice-president of the Parliament and the lead rapporteur behind the EU’s landmark Digital Services Act is in favour.

Speaking on The Ring, Schaldemose argues that today’s platforms are simply not designed for children. Young users, she feels, are exposed to violence, suicide, bullying, and relentless commercial pressure, while addictive design features keep them online for hours every day.

“What is illegal offline must also be illegal online,” she has repeatedly insisted adding that platforms have failed to act voluntarily. In her view, a ban would send a clear signal — both to tech companies and to society — that children deserve stronger protection.

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German MEP Axel Voss of the European People’s Party, a long-time digital policymaker best known for his work on EU copyright rules opposes a blanket ban. Voss agrees that social media can be harmful, not just to minors but to society as a whole. But he warns that banning young people from platforms does not equal protection.

Instead, Voss argues that the focus should be on regulating content, algorithms, and so-called “dark patterns” that drive addiction. Age bans, he says, are easy to bypass and risk ignoring the real problem: business models that profit from attention at any cost. He also raises concerns about freedom of expression and the difficulty of defining “good” and “bad” content in a politically divided Europe.

This episode of The Ring is anchored by Méabh Mc Mahon, produced by Luis Albertos and Amaia Echevarria, and edited by Vassilis Glynos.

Watch The Ring on Euronews TV or in the player above and send us your views by writing to thering@euronews.com

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Iran bleeds $1.56M every hour from internet blackout restrictions amid economic crisis: analyst

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Iran bleeds .56M every hour from internet blackout restrictions amid economic crisis: analyst

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Iran is losing an estimated $1.56 million every hour because of its state-imposed internet blackout, draining its struggling economy and disrupting life for more than 90 million people, according to an internet privacy analyst.

The prolonged disruptions originated amid spiraling protests through January with losses he claimed were continuing even after partial connectivity was restored.

“The current blackout is costing Iran an estimated $37.4 million per day, or $1.56 million every hour,” Simon Migliano, head of research at PrivacyCo, told Fox News Digital. “The full internet blackout itself cost Iran more than $780 million, and the subsequent strict filtering continues to have a significant additional economic impact.”

“Iran has already drained $215 million from its economy in 2025 by disrupting internet access,” the internet privacy and security analyst added.

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IRAN WILL RETALIATE ‘WITH EVERYTHING WE HAVE’ IF US ATTACKS, SENIOR DIPLOMAT WARNS

The Iran internet blackout started Jan. 8 and reportedly costs $1.56 million per hour amid protests. ( Maria/Middle East Image /AFP via Getty Images)

Migliano said his estimates were calculated using the NetBlocks COST tool, an economic model that measures the immediate impact on a nation’s gross domestic product when its digital economy is forced offline.

The model assesses direct losses to productivity, online transactions and remote work, drawing on data from the World Bank, the International Telecommunication Union, Eurostat and the U.S. Census Bureau.

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According to the organization NetBlocks, internet access was completely cut off in Iran since January 9, 2026, following protests that swept the country. (Samuel Boivin/NurPhoto via Getty Images)

Iranian authorities abruptly cut off communications on the night of Jan. 8 amid widespread protests against the clerical regime.

While officials later restored much of the country’s domestic bandwidth, as well as local and international phone calls and SMS messaging, the population is largely unable to freely access the internet because of heavy state filtering.

“The recent 579% surge in VPN demand reflects a scramble for digital survival,” Migliano said before describing how even when access is briefly restored, the internet remains “heavily censored and effectively unusable without circumvention tools such as VPNs.”

“We can see spikes showing that as soon as connectivity returned, users immediately sought VPNs to reach sites and services outside the state-controlled network, including global platforms such as WhatsApp and Telegram that remain otherwise inaccessible,” he added.

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IRAN REGIME OPENED FIRE WITH LIVE AMMUNITION ON PROTESTERS, DOCTOR SAYS: ‘SHOOT-TO-KILL’

“The recent 579% surge in VPN demand reflects a scramble for digital survival,” Migliano said. (UGC via AP)

“Sustained demand — averaging 427% above normal levels — indicates Iranians are stockpiling circumvention tools in anticipation of further blackouts,” Migliano said.

“The usual strategy is to download as many free tools as possible and cycle between them. It becomes a cat-and-mouse game, as the government blocks individual VPN servers and providers rotate IP addresses to stay ahead of the censors,” he added.

Iran’s minister of information and communications technology, Sattar Hashemi, acknowledged the economic toll caused by the blackout tactics.

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He said recent outages were inflicting roughly “5,000 billion rials” a day in losses to the digital economy and nearly 50 trillion rials on the wider economy, according to Iran International.

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“Iran’s three-week internet blackout may have been lifted, but connectivity remains severely disrupted still,” Migliano claimed.

“Access is still heavily filtered. It is restricted to a government-approved ‘whitelist’ of sites and apps and the connection itself remains highly unstable throughout the day,” he added.

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