Estonia calls on EU to do everything to finance Ukraine: No fiscal constraints
Illustrative photo: Estonia urges the EU to finance Ukraine with every possible effort (flickr.com)
Estonia calls for the governments of European Union countries to make every possible effort to finance Ukraine. Budgetary problems faced by some states should not stand in the way, according to an interview with Estonian Finance Minister Jürgen Ligi given to Bloomberg.
"There should be no fiscal limits if questions are existential for liberal democracy and human lives," he said.
The outlet noted that Europe is increasingly bearing the burden of financing Ukraine after Donald Trump returned to the presidency of the United States. The situation has created strains for a number of countries that are trying to keep budget deficits under control.
Ligi said he hopes that the EU will eventually find the courage to use Russia’s frozen assets, as otherwise the unity of allies will face serious tests.
"The biggest challenge at the moment is the breaking down of unity of allies, and I think we need to face that, including inside Europe," he added.
The outlet also noted that Ligi’s position is significant given his tough reputation as a "fiscal hawk." During the 2008 recession, he pushed through very painful austerity measures in Estonia. Now, as the country’s finance minister, Ligi has forced Estonia to rapidly increase defense spending.
"Europe needs to continue funding Ukraine if the US cuts itself off from allies… There are others who will support other liberal democracies because the funding is not sufficient," he concluded.
Meanwhile, European Union countries, including Germany, the Netherlands, and France, are arguing over the use of €90 billion for Ukraine. The main dispute centers on whether Kyiv should be allowed to spend these funds on weapons from the US. This could potentially affect Ukraine’s ability to quickly obtain the weapons it needs.
At the same time, the European Union is currently working on the final adoption of the legal framework required to provide Ukraine with the promised €90 billion loan over the next two years. Kyiv could receive the first tranche in the second quarter of 2026.
Back in December 2025, during a summit in Brussels, EU member state leaders agreed to allocate €90 billion in support for Ukraine in 2026–2027. In practice, this is a concessional loan that Ukraine would repay only if Russia pays reparations for the invasion. It also replaces a planned €140 billion loan that was to be provided to Ukraine using Russia’s frozen assets in Europe.
