EU links new Ukraine funding to reforms as von der Leyen presses Kyiv on shadow economy and taxes
European Commission President Ursula von der Leyen held a tense meeting with President Volodymyr Zelensky in which EU officials said further financial support should follow concrete progress on laws to fight Ukraine’s shadow economy, raise tax revenues and align with EU rules.
Ukraine is facing firmer conditions from Brussels on wartime financial support, with senior EU figures tying fresh money to progress on economic and legal reforms.
According to a detailed account of a recent meeting, European Commission President Ursula von der Leyen and other EU representatives told President Volodymyr Zelensky that they want to see movement on legislation to curb the shadow economy, increase tax revenues and bring Ukrainian laws closer to European Union standards before allocating more funds.
The meeting was described as tense. One EU message was captured in the phrase: no reforms, no money. For Kyiv, which relies heavily on external financing to cover budget gaps while fighting a full‑scale war, that linkage is highly consequential.
EU officials are pressing for steps that would make it easier to demonstrate to European publics and parliaments that aid is accompanied by better governance and stronger tax collection. For Ukraine, implementing such reforms means navigating politically sensitive changes while also managing mobilisation, front‑line defence and reconstruction of damaged infrastructure.
The warning from Brussels doesn’t only affect high‑level politics. Ukrainian public‑sector salaries, pensions and basic services depend in part on EU funds. Any slowdown or interruption in that support because of reform delays could translate into pressure on everyday budgets inside Ukraine.
On the EU side, the approach reflects a desire to keep Ukraine’s integration track and its wartime support track aligned, treating the country as both a security partner and a candidate for eventual membership.
The next key indicators will be concrete legislative moves in Kyiv on shadow‑economy and tax bills, timelines set out for aligning key sectors with EU law, and how the European Commission and member states write reform benchmarks into upcoming packages of macro‑financial assistance.
Sources
- OSINT