The EU is considering a €60 billion loan for Ukraine’s defense, and the European Commission is ready to implement it. The plan proposes financing Ukraine’s defense according to a “cascading procurement” principle: first in Ukraine, then within the EU, then through partners, and only after that outside the European Union.
This was stated by EU Commissioner for Defense and Space Andrius Kubilius on Tuesday while opening debates in the European Parliament in Strasbourg on strengthening European defense amid an unstable international environment.
“Currently on the table is a €60 billion loan for Ukraine’s defense. The European Commission is fully ready to implement it. The loan is built on a cascading principle: procure primarily in Ukraine, then in the European Union, then from partners, and only after that outside. So if our industry cannot supply, Ukraine will be able to access global markets. And Ukraine needs these weapons now,” emphasized the commissioner.
He also reminded that he will soon embark on a “missile tour” to discuss with member states and industry how best to accelerate missile deliveries to Ukraine and replenish European stockpiles.
Kubilius reported that last week he held the first meeting of the Supply Security Council, which will oversee supply chains so that industry can produce on a large scale and quickly.
“Defense spending can provide strategic added value for our competitiveness; over the next 10 years, it could average nearly €700 billion per year. Europe therefore faces a decisive choice in defense—act in a fragmented way or act together and make defense spending an engine of the economy. That is why we are telling member states: coordinate, set priorities—not only national, but European ones—fully aligned with NATO,” he urged.
According to Kubilius, thanks to the new EU defense policy, €150 billion in loans has already been secured, 16 out of 19 national investment plans have been approved, and member states will spend €6.8 trillion on defense by 2035 if NATO commitments are fulfilled.
