EU heads of state are convening in Brussels for end-of-year talks facing a key decision on the use of frozen Russian Federation assets to boost Ukraine’s defense in the war against Russia.
“We have a simple option: either funds now, or bloodshed in the future,” stated the Polish leader Donald Tusk. “This isn't just about Kyiv only, this concerns Europe.”
The 27-nation union is working urgently to fortify Ukraine's position while ex-American leader Donald Trump advocates for a rapid settlement to end the conflict as the invasion drags towards the fourth anniversary.
A Looming Fiscal Crisis and the Proposed Solution
The EU estimates the nation needs an additional €135bn ($159bn) to stay afloat during the next two years, with the cash crunch set to start in the spring. To plug this hole, the European Commission has proposed a scheme to access approximately €210bn of Moscow's state assets seized within the bloc.
German Chancellor Friedrich Merz said the assets plan was essential to ramp up pressure on Vladimir Putin and send “a strong message to Russia.”
A Divided Bloc: Opposition and Legal Concerns
However, a significant opposition bloc, spearheaded by Belgium—where the headquarters of the clearing house Euroclear, which holds the majority of the frozen funds—is raising questions about potential legal issues. Nations including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also expressed doubts.
Technically, this group is not sufficient to veto the plan should a vote be held under qualified majority voting rules. Yet in practical political terms, it creates the process very awkward for all parties involved.
But there is no sign of compromise, as the alternative option—focusing on European Union joint borrowing—would require unanimity, and would likely be blocked by Hungary, which categorically rejects providing any further help for Ukraine.
Officials' Statements Ahead of the Negotiations
European leaders have insisted that the Brussels talks will continue for however long it is necessary to reach an consensus, warning that Ukraine’s survival and Europe’s credibility are on the line.
- Ursula von der Leyen, the European Commission president, declared she would not depart from the summit before an deal is concluded.
- In a stark contrast, Slovakia's leader Robert Fico allegedly remarked that he could be kept until the new year, and he would not support it.
- Ukrainian leader Volodymyr Zelenskyy is set to join the meeting in a last-ditch effort to persuade the skeptical nations.
Strong Opposition from Hungary
Hungary’s Prime Minister Viktor Orbán proved to be blunt, calling the idea of using seized assets “foolish” and equivalent to “marching into the war.” He voiced support for Belgium’s cautious stance.
Appeals for Unity and a Solution
Other leaders emphasized the critical need for a resolution.
- António Costa, President of the European Council, vowed: “Negotiations will continue on this today, if it’s necessary tomorrow, but we will not depart from the summit without a conclusive agreement.”
- Kaja Kallas, the EU’s foreign policy chief, noted that efforts to address Belgium’s worries and share the liability equally were continuing. She put the odds of a deal at “fifty-fifty.”
- Micheál Martin, Ireland’s Taoiseach, stated his country was “strongly in favour” of the use of the frozen funds.
The stage is set for a possibly protracted and tense bargaining session in Brussels, with the future of substantial monetary support for a nation at war resting in the balance.
