The European Commission’s proposal to increase the common budget by €100B for 2021-2027 was resisted by EU members.

According to the FT, half of the total amount, €17B in grants and €33B in loans, is intended for Ukraine. There is almost unanimous agreement within the bloc on this matter, although some countries have proposed restructuring this package so that there are fewer grants and more loans.

But the second half of the budget request met with opposition. The European Commission needs additional money to pay interest on joint borrowing for the recovery plan after the coronavirus pandemic. In addition, the commission warned that funding for critical EU programs could be cut by 30% if member states do not replenish the common budget. Many countries believe the EC should look for internal resources or unspent money (which could reach €16B) before requesting additional infusions.

Note that Ukraine needs $32B in external financing through the end of 2024. As of the end of October, Ukraine’s two largest donors, the EU and the US, still have not approved any financial aid.