EU leaders face make-or-break summit on Ukraine funding, Commission chief says

European leaders must reach agreement on a long-term funding package for Ukraine at a critical summit in Brussels this week, European Commission President Ursula von der Leyen said, warning that the decision will shape both Europe’s security posture and its strategic credibility.

Speaking before the European Parliament in Strasbourg, von der Leyen said she had presented member states with two alternative financing models for consideration at the upcoming European Council meeting, POLITICO reports.

“I proposed two different options for this upcoming European Council. One based on assets and one based on EU borrowing. And we will have to decide which way we want to take, which route we want to take,” she said.

"We have to find a solution," she said as EU leaders gathered for make-or-break negotiations on using frozen Russian assets for Ukraine. We will not leave the European summit without a solution for the funding of Ukraine."

She stressed that delay was no longer an option. “But one thing is very, very clear. We have to take the decision to fund Ukraine for the next two years in this European Council,” von der Leyen added.

Linking the funding debate to broader questions of European security, the Commission president underscored the need for the bloc to assume greater responsibility for its own defence. “Europe must be responsible for its own security. This is no longer an option. This is a must. We need to be ready,” she said. “There is no more important act of European defence than supporting Ukraine’s defence. The next days will be a crucial step for securing this.”

She also framed the summit as a test of Europe’s strategic autonomy. “So our task at this week’s summit is to show that we are focused on our own strategy and our own interests and our own priorities,” von der Leyen told lawmakers.

December 18 summit is seen as pivotal for both Europe and Ukraine, with the most contentious unresolved issue being whether to allow Kyiv access to frozen Russian assets to finance its war effort. Belgium, which holds the majority of those assets, has expressed reservations, warning it could be exposed to liability if Russia were to seek to reclaim the funds.

Addressing members of the European Parliament, von der Leyen said Europe would need to shoulder the bulk of Ukraine’s future financing. “The IMF and our estimates show that Ukraine’s needs for the years 2026 and 2027 are around €137 billion. Europe should cover two-thirds, that is €90 billion,” she said.

Beyond security and defence, the Commission president also highlighted the need to boost competitiveness, diversify supply chains, and strengthen Europe’s economic resilience, arguing that “Europe’s era of independence must be unstoppable.”

Von der Leyen pushed back against criticism of Europe from abroad, without directly naming US President Donald Trump. “We cannot afford to let the world views of others define us … But let me say this, it would not be the first time that assumptions about Europe were shown to be outdated,” she said. Her remarks came a week after Trump told POLITICO in an interview that European leaders were “weak,” adding, “Europe doesn’t know what to do.”

Concluding her address with a warning against complacency, von der Leyen said: “Yesterday’s peace is gone. We have no time to indulge in nostalgia.”

By Vafa Guliyeva