Brussels, Belgium. The Economic and Financial Affairs Council (Ecofin), convening under the Cyprus Presidency, agreed on a €90 billion loan package for Ukraine to cover its financing needs for 2026 and 2027. The agreement was reached in cooperation with the European Parliament and the European Commission, with funds to be disbursed from the second quarter of 2026.
Ukraine financing package
Speaking at a press conference after the meeting, Finance Minister Makis Keravnos said the Cyprus Presidency worked to secure immediate financing for Ukraine, which has been affected by Russian aggression. Ministers discussed the economic and financial consequences of the Russian invasion and welcomed the agreement to support Ukraine.
Lithuania plan amendments and Recovery and Resilience Facility
Keravnos said the council approved amendments to Lithuania’s recovery and resilience plan aimed at accelerating its implementation. He added that all national recovery and resilience plans of member states have now been approved, with around €394 billion disbursed under the Recovery and Resilience Facility, corresponding to 68 per cent of the total committed amount under the regulation.
Defence expenditure and fiscal flexibility
Keravnos said that, in the context of strengthening defence expenditure, the national escape clause was activated for Austria for a period of four years. He said the measure is expected to facilitate the gradual increase of Austria’s defence spending while safeguarding fiscal sustainability.
Security Action for Europe decisions
Keravnos said the council adopted eight implementing decisions under the Security Action for Europe instrument, paving the way for the granting of affordable long-term loans by the European Commission. He said these decisions will allow participating member states to acquire modern defence equipment and enhance their defence readiness.
What impact do you expect the agreed financing measures to have on Ukraine’s planning for 2026 and 2027?