That's just a technicality. There is no "EU" tax so the institutions does not have the billions to give away. They can however secure loans so that is the method being used. But make no mistake what is happening here.

Look at the backing countries and how they are spending on Ukraine. There you will see the direct donations.

No EU member country has yet to make a billion dollar repayment claim post facto. Certainly not five hundred billion.

I don’t see how you’re describing anything other than what I’ve described.

The money may come from the private sector, but the government guarantees for it. This is government spending.

On paper, the government may theoretically not have to pay, but in practice everyone knows that the loans aren’t paid back and then the government must pay for them.

These loans really are just creative accounting for giving money within the budgetary constraints European governments find themselves in.