The European Commission is considering three ways to cover Ukraine's budget deficit for 2026, which could reach $19 billion.
The Financial Times writes about this.
Methods of covering the budget deficit of Ukraine-2026 from the European Commission
An unnamed European official stressed that many stakeholders had been counting on a ceasefire agreement being reached this year, so they were having to urgently review their spending.
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The first method is the one announced by Ukraine to the Big Seven. It provides for financial assistance in the form of extra-budgetary grants that will be included in the defense spending targets of NATO countries.
In this way, it will be possible to achieve a dual goal – to fulfill the commitment to increase defense spending to 5% of GDP and to support Ukraine.
The second way is to accelerate payments under the current G7 ERA (Extraordinary Revenue Acceleration for Ukraine) program, which provides assistance using frozen Russian assets.
The third way is to reinvest frozen Russian assets into riskier classes and at higher interest rates.
The publication clarified that funding for national security and defense will remain the main priority of the state budget for at least the next three years.
Source: Financial Times
