EU heads of state have gathered in Brussels for end-of-year talks with a key choice regarding using frozen Russian funds to strengthen the Ukrainian defense in the war against Russia.
“There is a clear choice: either money now, or else bloodshed in the future,” stated the Polish leader Donald Tusk. “I’m not talking about Ukraine alone, this concerns Europe.”
The 27-nation bloc is working urgently to strengthen Kyiv’s hand while former U.S. President Donald Trump advocates for a rapid settlement to halt the fighting as the invasion drags towards the fourth anniversary.
The Financial Crisis and the Proposed Plan
The EU estimates Ukraine requires an extra €135bn ($159bn) to remain solvent during the 2026 and 2027, with the cash crunch expected to begin in the spring. To plug this gap, the EU's executive arm has proposed a plan to tap some €210bn of Moscow's state assets frozen within the European Union.
Germany's Chancellor Friedrich Merz said the proposal was critical to ramp up pressure on Vladimir Putin and send “a clear message to the Kremlin.”
A Divided Bloc: Resistance and Juridical Concerns
However, a significant group of dissenters, spearheaded by Belgium—where the headquarters of the clearing house Euroclear, which custodies most the frozen funds—has been voicing questions about potential legal issues. Nations including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also registered reservations.
Technically, this coalition may not be enough to veto the plan should a vote be held under qualified majority rules. But politically, it creates the situation very awkward for all parties concerned.
But there is no sign of a middle ground, as the only other option—focusing on European Union debt—would need unanimity, and would almost certainly be blocked by Hungary, which categorically rejects any additional assistance for Ukraine.
Officials' Comments Ahead of the Talks
EU leaders have insisted that the summit talks will last for however long it takes to reach an consensus, cautioning that Ukraine’s survival and Europe’s credibility are at stake.
- Ursula von der Leyen, the European Commission president, declared she won’t leave the meeting until an deal is concluded.
- In a stark contrast, Slovak leader Robert Fico allegedly joked that they can keep him there until the New Year, and he would not back it.
- Ukrainian leader Volodymyr Zelenskyy is scheduled to join the meeting in a final effort to persuade the skeptical nations.
Strong Opposition from Budapest
Hungary’s Prime Minister Viktor Orbán was blunt, labeling the proposition of using seized assets “stupid” and equivalent to “entering the war.” He voiced support for Belgium’s cautious position.
Appeals for Unity and a Resolution
Other EU heads of state stressed 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 top diplomat, noted that work to address Belgium’s concerns and distribute the risk equally were continuing. She put the odds of a successful outcome at “50/50.”
- Micheál Martin, Ireland’s Taoiseach, said his country was “very much in support” of the use of the immobilised funds.
The stage is set for a potentially long and strained bargaining session in Brussels, with the fate of significant monetary aid for a nation at war hanging in the balance.
