FinancePolitics The EU is ready to fill in for the US if it withdraws from its $50B G7 loan agreement. Friday, December 6, 2024

The European Union is prepared to financially compensate for the potential loss of the US’ contribution in the G7 agreement to provide Ukraine with a $50B loan. Politico quotes Polish Deputy Finance Minister Pawel Karbownik, who will start his presidency of the Council of the EU, said that there is a risk that US President-Elect Donald Trump will withdraw from the agreement. This risk is evidenced by US Speaker of the House of Representatives Mike Johnson’s refusal of the Biden administration’s request to include $24B in aid to Ukraine in a Congressional spending bill. Johnson wants to wait for Trump’s decision on this issue.

Therefore, given the level of uncertainty, Karbownik called on Trump to announce his intentions as soon as possible to give the EU time to develop an action plan in the event of unforeseen circumstances. Karbownik stressed that in the worst-case scenario, the EU will make every effort to ensure that Ukraine receives $50B regardless of Trump’s decision. The EU will determine the loan’s final amount by the end of the year.