EU Links Ukraine Loan to European Weapons

French President Emmanuel Macron said European Union leaders have agreed that a €90 billion loan to Ukraine will be strictly conditioned on the purchase of European-made weapons, reinforcing the bloc’s push to strengthen its own defense industry.

Speaking at a press conference following a European Council summit, Macron said EU leaders had ensured that strict European criteria were put in place to prioritize domestic defense production.

He said the conditions were designed to favor European defense industries, whether based within the EU or operating in Ukraine, as part of a broader strategy to bolster Europe’s military capabilities while supporting Kyiv.

The announcement follows comments by European Council President António Costa, who confirmed that the EU will extend a €90 billion loan to Ukraine backed by the EU budget. The funding is intended to support Ukraine’s defense needs amid the ongoing war with Russia.

The Council of the European Union said Hungary, Slovakia, and the Czech Republic will not participate in guaranteeing the loan. It added that the financing arrangement will not require the mobilization of EU budget resources as a formal guarantee for the loan.

The decision reflects the EU’s growing emphasis on linking financial support for Ukraine with long-term strategic goals, including reducing reliance on non-European arms suppliers and strengthening the continent’s defense industrial base.

EU leaders have increasingly framed military assistance to Ukraine as both a security necessity and an opportunity to expand Europe’s defense production capacity at a time of heightened geopolitical tensions.