Nothing tests relationships quite like money. For all the shared values, respectful overtures, and mutually-beneficial partnerships, individual interests are brought to the fore when it comes down to brass tacks.
This has been proven once again as EU leaders discuss Ukraine’s reparation loan, which seeks to funnel frozen Russian assets towards Kyiv’s war effort. The problem is clear: The beleaguered nation is fighting valiantly but repelling the Russian offensive is costly – President Volodymyr Zelenskyy has said his country needs $120 billion to keep up the fight in 2026.
Conscious of the danger of losing Ukraine to Russia – and the implications this would have for other Western nations – Europe is casting around for ways to keep up the fight. Its dilemma is compounded by a loss of faith in the US and widespread economic frailty, which is already leading to uncomfortable budget decisions at home.
With everyone clutching purse strings, leaders have been casting around for solutions to the money conundrum, an issue so pressing that no stone should be left unturned. It was only a matter of time until the search led to a veritable hoard of cash – one that everyone has had their eyes on for a while.
Some €200 billion of Russian assets are currently sitting in a Belgian clearing house – Euroclear – and already the interest is being tapped. What if we took hold of the capital itself? The Commission has dispelled doubts about the legality of such a move, a confiscation which some say would contravene international law. Others posit that we can no longer afford to cling to such niceties – and it’s not as if our adversary is playing by the book.
Central in the debate is Belgium’s Prime Minister Bart De Wever, who has shot down suggestions that the funds be seized, arguing that this would put his country in the firing line. But beggars can’t be choosers, so the saying goes, and circumstances have forced heads of state to revise their red lines.
So the conversation continued in Copenhagen this week and De Wever softened his opposition, asking allies for security guarantees in case things go south. Belgium’s premier has become an entertaining voice in EU discussions, in which he has participated since assuming office in February this year.
Speaking at a press conference on Thursday morning, he deployed a characteristically colourful analogy to illustrate his concerns. “If we eat the goose, we’ll lose the golden eggs,” he cautioned, insisting that he is “not the bad guy”. Leaning heavily on metaphor, he stressed: “We’re taking a huge gamble and venturing into uncharted waters”.
He settled on the boat analogy, asking: “Who is going to embark on that boat with me? I’m already in the boat. There’s no escape for me.” De Wever has a knack for painting puzzles in visual terms, amusing listeners with his rhetorical flourishes. But his questions demand straight answers, and Europe has so far failed to align on a unified strategy.
Roundup
The Great Simplification – The commission released new policies on Thursday that aim to “streamline” oversight of member states’ compliance with EU fiscal framework. It is a part of a broader simplification push, seeking to reduce excessive regulation.
Arise, defence ministers – Defence ministers are poised to play a greater role in shaping collective security as Europe faces increasing drone intimidations. “We need to engage more and more our defence ministers at European level,” said European Council president António Costa.
Drones aren’t our only weak point – Europe needs the economic equivalent of a drone wall to preserve its security and sovereignty. But that would require member states to hand new powers and funding to Brussels, argues Euractiv columnist Simon Nixon.
Across Europe
Spain demands immediate release of nationals detained by Israel – Dozens of Spaniards who were aboard the Gaza-bound aid flotilla were detained overnight by Israeli forces. Spain’s Foreign Minister said they “posed no threat and had no intention of harassing anyone or carrying out any kind of illegal action.”
EU piles pressure on Greek PM over immunity row – EU chief prosecutor Laura Kövesi ramped up pressure on Greek Prime Minister Kyriakos Mitsotakis on Thursday, urging constitutional reform to scrap immunity rules that shield ministers from corruption probes involving EU funds.
Poland hits back at Hungary – The Polish deputy foreign minister slammed comments by Hungarian PM Viktor Orbán, who accused Donald Tusk of putting millions of Europeans’ lives at risk by supporting Ukraine’s stand against Russia.
