World
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.
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.
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.
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.
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.
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.”
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.”
World
With US unleashing attacks, Iranian official threatens that the Islamic Republic will deliver a ‘hard slap’
NEWYou can now listen to Fox News articles!
An Iranian official warned that the Islamic Republic will deliver a “hard slap” while another blatantly threatened the U.S. that “if you strike, you’ll get hit,” according to automatic translations from the two men’s Persian-language posts on X.
Ebrahim Rezaei, whose profile on the social media platform indicates that he is a representative in Iran’s Parliament and the spokesperson for the National Security and Foreign Policy Commission, wrote in a post on X, “The martyred Khamenei taught us not to fear America and showed that ‘falsehood will perish.’ Await the hard slap from the Iranians.”
The speaker of Iran’s Parliament, Mohammad Bagher Ghalibaf, warned, “America still hasn’t learned that bullying and breaking promises are no longer cost-free. Let me put it plainly: if you strike, you’ll get hit. Don’t flail around pointlessly, or you’ll sink even deeper: the Strait of Hormuz will only open with ‘Iranian arrangements,’ not American threats.”
Both of the men issued their posts on Wednesday after U.S. Central Command (CENTCOM) announced more strikes against Iran.
“At the direction of the Commander in Chief, U.S. Central Command forces have started conducting additional strikes against Iran to further degrade their ability to threaten freedom of navigation in the Strait of Hormuz. The United States is holding Iran accountable for recent unjustified aggression against commercial shipping and civilian crews freely navigating a vital international waterway,” CENTCOM had noted in a post on X.
TRUMP SAYS IRAN CEASEFIRE DEAL IS ‘OVER’ AFTER NEW ROUND OF STRIKES
People gather at the Imam Khomeini Grand Mosalla for a farewell ceremony for Iran’s late Ayatollah Ali Khamenei on July 4, 2026, in Tehran, Iran. (Majid Saeedi/Getty Images)
The U.S. military later provided more information about the attacks.
“U.S. Central Command (CENTCOM) forces completed an additional round of strikes against Iran, July 8, to further degrade Iran’s ability to attack commercial shipping and innocent civilian mariners in the Strait of Hormuz,” CENTCOM noted on Wednesday night.
“U.S. forces struck approximately 90 Iranian military targets including air defense systems, coastal surveillance assets, missile and drone storage sites, naval capabilities, and military logistics infrastructure along Iran’s coastline. The latest strikes follow successful execution of offensive strikes in Iran the night before,” the announcement noted. “CENTCOM forces hit approximately 80 Iranian military targets July 7, including more than 60 Islamic Revolutionary Guard Corps small boats, to impose heavy costs for Iran violating the ceasefire by attacking three commercial vessels navigating the Strait of Hormuz.”
TRUMP DEMANDS END TO TRADE WITH KEY US ALLY, CALLS IT A ‘WASTED CAUSE’
President Donald Trump indicated on Wednesday that, as far as he was concerned, the U.S.-Iran Memorandum of Understanding ceasefire was “over.”
Kuwait and Bahrain have both reported coming under attack.
The Kuwait Army noted in a Thursday post on X, which was written in Arabic, “The Official Spokesman for the Ministry of Defense, Major General Saud Abdulaziz Al-Otaibi, stated that the armed forces detected, at dawn today, (3) ballistic missiles, (1) cruise missile, and (10) hostile drones within Kuwaiti airspace, which were successfully intercepted and dealt with.”
TRUMP SAYS ‘IRAN LIES AND CHEATS’ AS IRGC EMERGES AS DOMINANT FORCE IN NEGOTIATIONS WITH US
President Donald Trump speaks as he meets with NATO Secretary General Mark Rutte on the sidelines of the NATO summit in Ankara, on July 8, 2026. (SAUL LOEB / AFP via Getty Images)
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
The Bahrain Defense Force noted in a post that was in Arabic, “The General Command clarifies that, with firm resolve and high combat readiness, the Bahrain Defense Force’s air defense systems confronted, intercepted, and destroyed several treacherous Iranian aerial attacks this morning, Thursday, July 9, 2026 CE.”
Three wins to go. How can your team reach the final and win the World Cup 2026? Click here to find out.
Who: Norway vs England list of 3 itemsend of list
What: FIFA World Cup 2026 – Quarterfinals
Where: Miami Stadium, Miami Gardens, Florida, the United States
When: Saturday, July 11, at 5pm (21:00 GMT)
How to follow: We will have all the build-up on Al Jazeera Sport from 18:00 GMT before our live text commentary stream.
Recommended Stories
Four weeks ago, if you told Norwegians their team would be in the World Cup quarterfinals, they might have laughed it off. But this weekend, the Scandinavian country is set to break new ground.
Norway’s dream run in North America enters a new chapter when the tournament’s dark horses take on title contenders England for a place in the semifinals.
It took Norway a whopping 28 years to return to the sport’s biggest stage, and they have made their mark in style – from their traditional Viking row celebrations capturing global attention to striker Erling Haaland becoming the internet’s darling.
A lethal presence in the box and a goofy, no-nonsense personality off the pitch, Haaland has become somewhat of an all-round entertainer for viewers. His exemplary goal-scoring figures make you almost forget he’s playing in his debut World Cup – and next up, the towering striker will go toe-to-toe with England’s Harry Kane, another number nine who delivers when it matters most.
How did Norway and England reach the round of 16?
Norway finished second in Group I with six points, beating Senegal and Iraq and losing to France. They started their knockout phase with a late 2-1 win over the Ivory Coast before stunning Brazil by the same scoreline to reach the quarterfinals for the first time.
England topped Group L with seven points, beating Croatia and Panama and drawing with Ghana. They needed a second-half comeback to beat the Democratic Republic of the Congo in the round of 32 and knocked out cohosts Mexico 3-2 in a scintillating last-16 contest at the iconic Azteca Stadium.
Pressure firmly on England
The chants of “It’s Coming Home” were louder than ever when England’s fighting spirit – against the background of high altitude, history and a red card – steered them to victory against the home side Mexico.
Sharing 10 of the team’s 11 goals between them, the dynamic duo of Kane and Jude Bellingham has kept England alive in the title race, especially at a time when there are defensive deficiencies in the squad.
The in-form side, which also boasts more World Cup experience than Norway, are deemed favourites to reach the semifinals for the first time since 2018.
“We’ve been here a few times,” said England winger Bukayo Saka. “But the best team on the day is going to be the team that wins, so we’re aware of that and that’s where our focus is.”
England’s leaky defence – which has kept only two clean sheets in five games – will face its toughest test yet against Haaland, whose seven goals rank him third in the Golden Boot race, only behind Lionel Messi and Kylian Mbappe.
Haaland: The most recognisable face at the World Cup
In their first World Cup since 1998, Norway, a nation of just more than five million people, has exceeded expectations.
After stunning the record five-time world champions Brazil to reach their first-ever quarterfinal, Norway will be eager to take down another giant and extend their fairytale run.
As much as their success has been a team effort, the spotlight has centred on their poster boy, Haaland – the blond, pony-tailed, 1.95-metre- (6ft4-) tall striker and a new social media sensation.
With his nonchalant replies in news conferences, awkward post-match selfies on Snapchat and a glittering collection of luxury handbags, the striker has drawn attention for more than just his goal-scoring prowess. In fact, “Haaland mania” has reached a fever pitch during the course of the World Cup.
Instagram is flooded with AI-generated and animated videos of him, stitched with his now-famous song “Ha-ha-ha-Haaland”.
“It’s important to joke around … I like to joke a little bit, and I like to have fun,” Haaland said. “That’s a key for my daily life – to joke around and, of course, train well and prepare well.”
Haaland’s top-notch preparation has delivered outcomes that even the 25-year-old did not expect.
“To be in the quarterfinals with Norway in the World Cup is quite surprising, even for me,” he said.
“Just to be able to play in the World Cup is, for me, a huge honour, and it was a huge goal for me in my career. To be able to be here and play on the biggest stage with my Norwegian friends against the best teams in the world, it’s really special.”
Norway vs England predictions
The Opta supercomputer gives England a 50.4 percent likelihood of winning in regulation time, while Norway’s chances of winning are 25.1 percent.
The model estimates a 24.6 percent probability of the game going to extra time.
What time is Norway vs England?
- Norway: NRK1, NRK2, TV 2 (11pm, Central European Summer Time)
- United Kingdom: STV, STV Player, ITV1, ITVX (10pm, British Summer Time)
- USA: Peacock, Fox, Fox One, Telemundo App, Telemundo Network (5pm, Eastern Daylight Time)
To check the TV listings for your country, head to FIFA’s TV listing schedule here.
Who will the winner face in the semifinals?
The winner of the Norway vs England match will play Argentina or Switzerland in the semifinals in Atlanta on Wednesday.
Norway vs England: Head-to-head
Norway and England have never met at the World Cup, but have previously faced each other 12 times. England have won seven times, Norway twice, while three matches ended in a draw.
Their most recent encounter came in a 2014 international friendly, which England won 1-0 at Wembley.
Norway vs England: Team news
England will be without defender Jarell Quansah after he was handed a two-match ban for picking up a red card in the game against Mexico. He will miss the quarterfinal and a potential semifinal should England advance.
Centre-back Marc Guehi has a slight hamstring strain and will be assessed later on Friday to see if he is fit to play, while Reece James remains doubtful with a hamstring injury.
Defensive midfielder Jordan Henderson has been ruled out of the rest of the tournament with a broken wrist.
No issues have been reported in the Norway camp.
Norway’s predicted lineup
(4-3-3): Nyland (goalkeeper); Ryerson, Ajer, Heggem, Moller Wolfe; Berg, Berge, Odegaard; Sorloth, Haaland, Nusa
England’s predicted lineup
(4-2-3-1): Pickford (goalkeeper); Konsa, Stones, Guehi, O’Reilly; Rice, Anderson; Saka, Bellingham, Gordon; Kane
-
Detroit, MI4 minutes agoDetroit Evening Report: Waymo cars blocking first responders – WDET 101.9 FM
-
San Francisco, CA12 minutes agoSan Francisco Mayor Daniel Lurie Blocks Vacant Grocery Store Tax Proposal | KQED
-
Miami, FL17 minutes agoOregon Battling Miami, Mario Cristobal for Four-Star EDGE Recruit
-
Dallas, TX19 minutes agoFC Dallas Forward Logan Farrington Inks Contract Extension
-
Boston, MA27 minutes agoRed Sox face lengthy travel issues ahead of series vs. Mets
-
Denver, CO34 minutes agoWhat’s going on with the Nuggets? Unpacking an NBA offseason on hold
-
Seattle, WA37 minutes agoSeattle Kraken Sign Goaltender Victor Östman and Defenseman Ville Ottavainen to One-Year Deals | Seattle Kraken
-
San Diego, CA42 minutes agoAn executive shuffle at San Diego’s Sempra
