European Union leaders are convening in Brussels for end-of-year discussions with a pivotal decision regarding using frozen Russian assets to strengthen Ukraine’s defense in the war against Moscow.
“There is a simple choice: it's money today, or bloodshed in the future,” stated the Polish Prime Minister Donald Tusk. “I’m not talking about Kyiv alone, I’m talking about the entire continent.”
The 27-nation union is scrambling to strengthen Kyiv’s hand while former U.S. President Donald Trump advocates for a quick settlement to end the conflict as the war continues towards the fourth mark.
A Looming Fiscal Crisis and the Proposed Plan
The EU estimates the nation requires an additional €135bn ($159bn) to stay afloat over the next two years, with the cash crunch expected to begin in April. To plug this gap, the European Commission has proposed a scheme to access approximately €210bn of Moscow's state assets frozen within the bloc.
German leader Friedrich Merz argued the assets plan was critical to increase the pressure on Vladimir Putin and send “a clear signal to Russia.”
A Split Bloc: Opposition and Legal Concerns
However, a significant opposition bloc, spearheaded by Belgium—the home of Euroclear, which holds most the Russian assets—has been raising concerns about possible legal issues. Countries including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also expressed doubts.
Technically, this group may not be enough to block the plan if a vote gets called under qualified majority voting procedures. But in practical political terms, it makes the situation extremely difficult for all parties involved.
There remains little indication of a middle ground, as the alternative pathway—focusing on European Union joint borrowing—would require unanimous approval, and would likely be obstructed by Hungary, which flatly denies any additional help for Ukraine.
Leaders’ Comments Ahead of the Negotiations
EU leaders have insisted that the summit talks will last for however long it is necessary to reach an agreement, warning that the future of Ukraine and the EU's standing are at stake.
- Ursula von der Leyen, the head of the EU executive, said she would not depart from the summit before an deal is concluded.
- In a stark contrast, Slovak Prime Minister Robert Fico reportedly joked that he could be kept until the New Year, and he still wouldn’t support it.
- Ukrainian President Volodymyr Zelenskyy is set to join the summit in a last-ditch effort to persuade the critics.
Firm Resistance from Hungary
Hungary’s Prime Minister Viktor Orbán proved to be uncompromising, calling the idea of utilizing seized Russian funds “foolish” and equivalent to “marching into the war.” He expressed agreement for the Belgian cautious position.
Calls for Unity and a Resolution
Several other EU heads of state stressed the urgency for a decision.
- António Costa, President of the European Council, pledged: “Negotiations will continue on the issue today, if it’s necessary tomorrow, but we will not depart from the Council before reaching a final decision.”
- Kaja Kallas, the EU’s top diplomat, commented that efforts to allay Belgium’s concerns and distribute the liability fairly were ongoing. She estimated the odds of a successful outcome at “fifty-fifty.”
- Micheál Martin, Ireland’s leader, stated his country was “strongly in support” of using the immobilised funds.
The scene is prepared for a potentially long and tense negotiation in the EU capital, with the future of substantial financial aid for Ukraine resting in the balance.
