German Chancellor calls on EU to grant Ukraine loans

German Chancellor Friedrich Merz has urged the European Union to provide Ukraine with a €140 billion loan to help sustain its economy and strengthen its defenses amid the ongoing war with Russia.

Merz emphasized that the financial support is crucial not only for Ukraine’s survival but also for the security and stability of Europe as a whole.

Speaking at a press conference in Berlin, Merz reiterated his belief that the Russian invasion of Ukraine is unlikely to be the Kremlin’s final move, warning that Moscow’s ambitions could extend beyond Ukraine.

“We must understand that what we are witnessing is not an isolated war, but part of a broader strategy aimed at destabilizing Europe,” he said.

The German Chancellor stressed that Europe cannot afford fatigue or division in its support for Kyiv, calling for a coordinated EU approach that combines financial assistance, military aid, and diplomatic pressure.

According to Merz, the proposed loan would be distributed over several years and tied to reforms in Ukraine aimed at strengthening governance, transparency, and reconstruction efforts.

European powers have largely backed continued support for Ukraine, with many leaders sharing Merz’s assessment that Russian President Vladimir Putin remains committed to an expansionist agenda.

Western officials argue that any sign of weakening resolve could embolden Moscow and undermine international law.

As the EU prepares a new package of sanctions targeting Russia’s energy and financial sectors, discussions are also intensifying over the inclusion of secondary sanctions on third countries accused of helping Russia circumvent existing restrictions.

The European Commission said it is working closely with allies, including the United States and the United Kingdom, to tighten enforcement and close loopholes.

Meanwhile, Ukraine continues to appeal for more financial and military support as its counteroffensive faces mounting challenges.

Kyiv has welcomed Merz’s remarks, with Ukrainian officials saying that European unity remains the key to resisting Russian aggression and ensuring long-term peace and security on the continent.