Will Ukraine get controversial EU joint loan?
A decision is to be reached on a "reparations loan" for Ukraine secured by frozen Russian state assets at an EU summit taking place this Thursday and Friday. According to a plan put forward by the EU Commission, the initial loan would be for 90 billion euros. However, Italy, Bulgaria and Malta have now joined Belgium – where most of Russia's capital is held by the financial services – in voicing objections.
Ensuring financial survival
Instead of constantly trying to avoid alienating Trump, Europe should take decisive action, Der Standard argues:
“The dice will be cast at the EU summit on 18 and 19 December. The 'coalition of the willing' could convert part of the frozen Russian assets amounting to 193 billion euros into an interest-free loan for Ukraine, thereby preventing the Ukrainian state, which is fighting for survival, from collapsing next spring. Instead of rhetorical solidarity, the EU should overcome the national egoisms and coordinate the financing of arms production, including the purchase of US weapons. ... We can expect nothing from the Trump administration. The time for flattering the egomaniac Trump is over.”
Merz taking charge
Berlin is a driving force in this matter, Hospodářské noviny comments approvingly:
“Ukraine is fighting for survival, and Europe for its future security. One of the few politicians who understands this is German Chancellor Friedrich Merz, host of the latest round of negotiations in Berlin. He faces the task of not only accelerating the rearmament of his own army and the rest of Europe, but also of pushing through a key step this week: an EU loan to Ukraine secured by frozen Russian assets on EU territory. If he succeeds, this would be a historic step that would secure financial resources for Ukraine for the next two years and give Europe time to prepare.”
No walk in the park
Naftemporiki describes the problems that this loan would entail:
“The legal complications of even indirect and guaranteed use of the frozen Russian funds remain serious, which is why tomorrow's EU summit promises to be contentious. But even if the project goes ahead, the path to implementation will once again be difficult for European governments as it involves not only financial but also political costs, particularly for governments in southern Europe. They will have to convince their citizens that, beyond the laudable goal of supporting Ukraine, they also need to finance their own war preparations to counter the Russian threat.”