European Union heads of state have gathered in Brussels to hold year-end talks with a key decision regarding using immobilized Russian assets to boost Ukraine’s defence against Moscow.
“There is a simple choice: it's money now, or else blood in the future,” stated Poland’s leader Donald Tusk. “This isn't just about Kyiv only, this concerns Europe.”
The 27-nation bloc is scrambling to strengthen Kyiv’s hand while ex-American leader Donald Trump pushes for a quick deal to end the fighting as the invasion continues towards the fourth anniversary.
A Looming Fiscal Crisis and the Controversial Plan
European officials calculate Ukraine requires an additional €135bn ($159bn) to remain solvent during the next two years, with the funding shortfall set to start in the spring. To fill this gap, the EU's executive arm has proposed a plan to tap some €210bn of Russian central bank assets frozen in the European Union.
German leader Friedrich Merz said the assets plan was critical to ramp up pressure on Vladimir Putin and send “a strong signal to the Kremlin.”
A Divided Union: Opposition and Juridical Concerns
However, a significant group of dissenters, spearheaded by Belgium—where the headquarters of Euroclear, which holds most the Russian assets—is voicing concerns about potential legal issues. Countries including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also expressed doubts.
From a procedural standpoint, this coalition may not be sufficient to veto the proposal should a vote be held under qualified majority voting procedures. Yet politically, it makes the process very awkward for all parties concerned.
There remains no sign of compromise, as the alternative pathway—relying on European Union debt—would need unanimity, and would likely be blocked by Hungary, which flatly denies any additional assistance for Kyiv.
Officials' Statements Before the Negotiations
EU leaders have stated emphatically that the summit discussions will last as long as it is necessary to achieve an consensus, warning that the future of Ukraine and Europe’s credibility are on the line.
- Ursula von der Leyen, the head of the EU executive, said she won’t leave the summit until an deal is concluded.
- In a stark contrast, Slovakia's Prime Minister Robert Fico reportedly remarked that he could be kept until the New Year, and he still wouldn’t back it.
- Ukrainian leader Volodymyr Zelenskyy is set to join the summit in a last-ditch attempt to persuade the critics.
Strong Opposition from Budapest
Hungary’s leader Viktor Orbán proved to be blunt, labeling the proposition of using seized assets “stupid” and amounting to “entering the conflict.” He expressed support for Belgium’s cautious position.
Calls for Consensus and a Resolution
Other leaders emphasized the urgency for a resolution.
- António Costa, President of the European Council, vowed: “We will work 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, commented that efforts to address Belgian worries and distribute the liability equally were ongoing. She estimated the odds of a deal at “fifty-fifty.”
- Micheál Martin, Ireland’s leader, said his nation was “very much in support” of using the frozen funds.
The stage is set for a potentially long and tense negotiation in the EU capital, with the fate of substantial financial support for a nation at war resting in the balance.
