In a written answer on 4 August 2026, the European Commission, represented by Mr Serafin, defended its approach to financing the debt service costs of the EUR 90 billion support loan to Ukraine, arguing that the 2027 draft budget can cover these costs without mobilising new instruments or cutting existing programmes. The answer, responding to a parliamentary question from Tom Vandendriessche (PfE), outlines that the debt service for 2027 is expected to amount to EUR 1.15 billion, to be financed through budgetary availabilities under the MFF ceilings, including savings from excess provisioning of the European Fund for Sustainable Development, and existing special instruments such as the Single Margin Instrument and Flexibility Instrument. Serafin emphasised that this leaves almost half a billion euro in margins under the MFF ceilings for 2027, and that for the period 2028-2034, ongoing negotiations take into account the need to finance these costs.
The question from Vandendriessche had challenged the Commission's use of the same budgetary margins and emergency instruments for additional joint EU debt issuance, given that NextGenerationEU interest costs are already pressuring the margins under the current MFF. The Commission's answer reiterates the legal basis for the loan, which was enabled by an amendment to the 2021-2027 MFF Regulation, and stresses that the EU budget will cover the debt service costs to provide concessional support to Ukraine. The answer does not introduce new numerical targets or deadlines beyond the already announced figures, but it does commit to publishing an updated assessment of the headroom in the annual report under Article 256 of the Financial Regulation, with the 2026 edition due in autumn 2026.
The policy orientation of the answer is to reassure that the Ukraine loan financing is manageable within the existing MFF framework, without resorting to additional borrowing or programme cuts. This is a response to concerns about the sustainability of the EU budget, which is already strained by NGEU debt service. The Commission's approach balances the need to support Ukraine with fiscal prudence, but it may face scrutiny from member states and MEPs who worry about the long-term implications of increasing EU debt. The answer signals that the Commission is closely monitoring contingent liabilities and will provide further details in the autumn report, which will be a key indicator for future policy direction. Stakeholders impacted include EU taxpayers, who ultimately bear the cost of debt service, and EU member states, who may see their budgetary margins reduced in future negotiations. The Commission's position is that no existing programmes will be cut, but this depends on the availability of savings and special instruments, which could be contested in the upcoming MFF negotiations.