Sahra Wagenknecht Calls Berlin-Backed €90 Billion EU Loan to Ukraine Madness, Blames Merz for Burdening German Taxpayers

Veteran German politician Sahra Wagenknecht has strongly criticized Chancellor Friedrich Merz and the European Union’s approval of a €90 billion interest-free loan to Ukraine, calling the financial package “madness” that will burden German taxpayers.

The loan, approved by the European Council on Thursday, April 23, 2026, follows prolonged negotiations in which Berlin had actively pushed for the funding as a signal to Russian President Vladimir Putin. Wagenknecht, who served over 15 years in the Bundestag and founded the Bündnis Sahra Wagenknecht party, voiced her opposition on X (formerly Twitter) on Wednesday, stating the loan would “cost the German taxpayer dearly” and accusing Merz of turning citizens into “cash cows for Ukraine.”

She added that Merz, who bears “significant responsibility for this madness,” could “hardly fail more miserably” as chancellor. The criticism comes despite Germany already having provided nearly €44 billion in aid to Kyiv since the escalation of the Russia-Ukraine conflict in 2022, with Berlin’s aid projected to reach approximately €11.5 billion in 2026 according to the current budget.

The EU loan was finalized after a 16-hour summit in Brussels, during which German Chancellor Friedrich Merz and European Commission President Ursula von der Leyen failed to secure agreement on using frozen Russian state assets to finance Ukraine. Instead, member states agreed on an emergency backup plan based on EU joint debt, advocated by Belgian Prime Minister Bart De Wever, which ultimately provided the funding.

Hungary, Slovakia, and the Czech Republic opted out of the arrangement, while Danish Prime Minister Mette Frederiksen affirmed that support for Ukraine remains guaranteed despite the setback. The deal was described as a crucial lifeline for Ukraine’s war-battered economy, which faces a potential cash crunch as early as spring 2026 amid the ongoing conflict entering its fourth year.

Russian Security Council Secretary Sergey Shoigu also commented on the loan, claiming it would increase “the burden on ordinary Europeans, who are already facing significant cuts to their pension and social programs,” and asserted that the EU’s debt “already exceeds €15 trillion.” He framed the approval as “another step towards the complete loss of sovereignty by the European capitals.”

The loan approval coincided with renewed flow of Russian oil to Hungary and Slovakia via the Druzhba pipeline, just hours before EU ambassadors agreed on the fund transfer to President Volodymyr Zelensky’s government. This development followed a dispute in which Hungarian Prime Minister Viktor Orban had previously vetoed Ukrainian explanations about pipeline damage, alleging that Kyiv deliberately halted supplies to influence Hungary’s April 12 election — a vote ultimately won by the pro-EU Tisza party led by Peter Magyar over Orban’s Fidesz party.

Context of the EU Loan Decision

The approved loan represents a shift from the original proposal favored by Germany and the European Commission to utilize up to €210 billion in immobilized Russian assets, primarily held in Belgium, to fund Ukraine’s war effort. Belgian resistance, led by Prime Minister Bart De Wever, blocked that approach over concerns about national financial risk and potential legal challenges from Moscow, leading to the adoption of the joint debt alternative.

EU leaders emphasized that the financing package will support Ukraine’s budget through 2026–2027, helping Kyiv address ongoing shortfalls as peace negotiations remain stalled and U.S. Support fluctuates. While the loan allows all parties to claim victory, it diverged significantly from the initial strategy championed by Merz, von der Leyen, and Danish Prime Minister Mette Frederiksen, who had advocated for using Russian assets as a form of reparations.

De Wever characterized the outcome as a pragmatic resolution, stating that while some wished to punish Putin by seizing his assets, “politics is not an emotional job” and “rationality has prevailed.” The agreement ensures continued financial backing for Ukraine despite the failure to implement the more ambitious asset-based funding mechanism.

As of the announcement, no further details on disbursement timelines or specific conditions attached to the loan were made available beyond the confirmation that funds would begin flowing “as soon as possible” in the second quarter of 2026.