Russian assets: EU Commission to examine the options
Negotiations among European leaders on using frozen Russian assets to support Ukraine have produced a minimum compromise. The EU Commission has been instructed to examine the options and draw up a corresponding legal proposal after Belgium, which had expressed doubts about the legality of accessing the funds, indicated it would no longer stand in the way. An important first step or unnecessary caution?
A start
At least a first step has been taken, Corriere della Sera is pleased to report:
“No one expected that yesterday's talks would produce an agreement on the reparations loan for Kyiv, which is to be financed with frozen assets of the Russian Central Bank, but nor did anyone expect the stalemate situation that emerged at the end of the EU summit. ... There had been no adequate response to legal doubts and the safeguards demanded by Belgium, in the view of Belgian Prime Minister Bart De Wever. ... We must therefore see the glass as half full. Belgium didn't veto the proposal but merely demanded clarity - a wish also expressed by other member states, as well as the European Central Bank, which fear for the reputation of the euro.”
Closer than ever
Rzeczpospolita hopes for a breakthrough regarding the use of frozen Russian funds:
“EU leaders have never been so close to transferring Russian Central Bank assets frozen in Brussels to Ukraine. This would enable the Ukrainians to wage war for another three years. ... Until recently, however, Germany and France had resisted the pressure, coming mainly from Poland and the Baltic states, to use these funds. They feared that seizing the funds would trigger panic among other large investors from outside the EU who have financial assets here, and prompt a crisis in the Eurozone that undermines confidence in the single currency.”
No risk no gain goes for values too
Der Spiegel believes that the fears about Europe's reputation as good place to invest are exaggerated:
“With the aid plan for Ukraine Europe would make clear that it is a haven of ethical reliability in the new global economic order in which the law of the jungle increasingly applies. EU governments could show the world that morality is worth more to them than dodgy deals at any price. In uncertain times, this could be turned into a locational advantage. After all, the Europeans would be sending out an important signal: Russia, but also the US, would have to recognise that Europe is prepared to take risks for the sake of its values and interests. The EU would re-establish itself as a player on the world stage.”
New sources of funding needed
Helsingin Sanomat hopes the frozen funds will be released quickly:
“The EU countries have the financial resources and political will to support Ukraine, but the continuation of this support is uncertain in the long term. Military aid to Ukraine has been significantly reduced, and the US is making European countries pay for its arms deliveries. ... The war is proving costly for Europe. New financing solutions are needed to support Ukraine, which is why it is urgent that the frozen Russian funds be released for Ukraine.”