After three and a half years of standing firm with Ukraine, getting members to agree on 19 sanctions packages, and striking unsavoury trade deals to keep the US on side, EU leaders meeting in Brussels today are now drawing lines in the sand on the question of how to maintain Ukraine’s war effort.
To respond to this most pressing of money problems, a plan to channel frozen Russian assets towards Ukraine has become a central debate. But despite the dire need, and the loan being structured specifically to circumvent the thorny issue of legality (the funds will not be “seized”), hesitation within the Union – notably from Belgium, where the assets are held – looks likely to derail the whole scheme.
Even if Belgium drops its opposition, what the money would actually be used for is yet another point of contention. Initially labelled the “Reparation Loan”, the €140 billion had been sold as an answer to the immense cost of rebuilding the war-pummelled country. Though not sufficient by itself to mend the damage of Russia’s punitive offensive, it would go some of the way and could stimulate private investment.
But how to start rebuilding before the war ends? For Friedrich Merz, the answer is instead to push for a loan that would be spent exclusively on military equipment – a proposition that itself has divided heads of state, as some insist that any weapons purchased should be EU-made, whilst others point out the superiority of US arms.
“I ask you to make a decision as soon as possible: the Russian assets must be used to defend ourselves against Russian aggression,” Zelenskyy addressed the EU leaders gathered in Brussels today. But Ukraine’s President must know by now that a quick decision is the last thing that will come out of today’s summit.
Roundup
EU Summit live – As EU leaders meet in Brussels, we’ll follow their packed agenda including Ukraine, European defence, and the situation in the Middle East.
EU welcomes US sanctions on Russia – EU leaders on Thursday hailed Washington’s decision to impose sanctions on two major Russian oil companies, arguing that the move will pile pressure on Moscow to end its war in Ukraine as the bloc ratchets up its own restrictive measures on the Kremlin.
Can Europe come out stronger when the AI bubble bursts? – As money pours into AI investments, a market correction is inevitable. The US may dominate in scale and China in speed, but Europe can lead in stability if it anchors the AI economy in transparency and long-term resilience, argues Euractiv columnist Chris Kremidas-Courtney.
Across Europe
The most expensive renovations in Brussels – The EU is considering spending €1.1 billion to overhaul the Council of the EU’s Justus Lipsius headquarters. After four years of planning, construction should start in 2029. Then construction will keep going until 2035, with the building reopening the following year.
Danes push to protect trade secrets in Critical Medicines Act – A Danish presidency draft aims to ensure that confidential industry data – including trade and business secrets, as well as commercially sensitive information – are protected during the regulation’s implementation.
Burying the EU soil law – The EU’s first soil protection law is on the verge of being scrapped as German lawmakers lead the charge in “averting further burdens for agriculture and industry”.