EU Countries Weigh Defence Industry Capacity Before Backing €90bn Ukraine Loan

European Union countries want a clearer picture of their defence industry’s capacity before committing to a €90bn loan for Ukraine, with roughly two-thirds of the money expected to go toward Kyiv’s military needs. The central concern is whether Europe can supply the required weapons fast enough.

According to Euractiv, EU defence ministers are set to discuss further support for Ukraine on Tuesday, May 12, alongside plans to expand defence production. European capitals will have to determine whether they can meet Kyiv’s needs through 2027, whether manufacturers have enough resources, and whether production can be scaled up to match the pace required for timely deliveries.

Brussels sees the proposed funding as a serious stress test for Europe’s defence-industrial base. Yet EU member states still lack a full assessment of what that base can actually deliver. Defence Commissioner Andrei Kubilius and EU foreign policy chief Kaja Kallas have already asked national capitals to outline what assistance they are prepared to provide. Fewer than half of the bloc’s governments have responded so far.

Euractiv reports that Kyiv is expected to receive the first €6bn by June. That tranche is intended for drone purchases. Three more aid packages are also being prepared, covering ammunition, air defence systems and additional drones.

Another unresolved issue is whether EU money can be used to buy weapons outside the bloc. Brussels is leaving that option open if Europe cannot supply Ukraine quickly enough on its own. But there is no common position among member states: Germany and France oppose the idea.