Von der Leyen approved this Wednesday the legislative package that covers the so-called “reparations loan”, the key piece with which Brussels wants keep Ukraine afloat for the next two years and help him resist Russia’s war of aggression.
The Government of Volodímir Zelenski It needs 135 billion euros in 2026 and 2027 to simultaneously sustain public services and the war effort, according to estimates by the International Monetary Fund (IMF).
At first, Brussels had proposed a credit of 140 billion euros to cover the entire Ukrainian budget hole. However, its latest proposal reduces the endowment to 90,000 million euros.
The president alleges that in this way the EU will cover two-thirds of kyiv’s needs, while the rest of the allies (the United Kingdom, Canada and Japan) will have to provide the rest. The Government of Donald Trump has cut off all budgetary and military aid to Zelensky since he came to power in January.
This loan will be financed with Russian funds frozen in EU territory since the outbreak of war (amounting in total to 210 billion euros). Ukraine will only have to return the money if Moscow pays war reparations.
“The message for Russia is that the reparations loan increases the cost of its war of aggression. So it is an invitation to come to the negotiating table to finally find peace,” said Von der Leyen.
Most of the assets of the Central Bank of Russia are held in the Brussels-based financial services company Euroclear. The Belgian Prime Minister, Bart de Weverwrote a letter to Von der Leyen last week alleging that this plan is “totally wrong” and will also undermine peace negotiations.
The Belgian Bart de Wever talks with the French Emmanuel Macron with Pedro Sánchez at the side and the Danish Mette Frederiksen in the background during a European Council
In his opinion, this is a confiscation of frozen Russian funds (something that Brussels denies) that is unprecedented and will put at risk the stability of the euro as a reserve currency.
“We have listened very carefully to the concerns of Belgium and We have taken almost all of them into account in our proposal“said the president at a press conference.
“We have very strong safeguards in place to protect Member States and minimize risks as much as possible,” says Von der Leyen.
For example, Brussels will not allow illegitimate sentences outside the Union (for example from courts in Russia or allied countries) to be executed on community territory. Besides, the proposal includes a “robust solidarity mechanism” backed by bilateral national guarantees and, ultimately, by the EU budget.
Finally, not only the assets immobilized in Euroclear are included, but also the rest of the Russian funds that are in other EU financial institutions (25 billion euros distributed between France, Belgium, Germany, Sweden and Cyprus).
The approval of this “reparations loan” does not require unanimity, but only a qualified majority, in order to avoid Hungary’s foreseeable veto. Is the Commission willing to move forward without Belgium as well?
“It is very important that we address all the concerns and risks perceived by Belgium,” Von der Leyen responded.
“We share absolutely the same objective as Belgium: the risks must be shared by all, distributed in a fair and equitable manner, and we must establish – as we have already done – mechanisms that protect all our Member States. And this, of course, specifically includes Belgium as well,” he insisted.
The president has indicated that she will continue negotiating with De Wever in the coming weeks, since The goal is to make a decision at the summit on December 18 and 19. However, the arguments of the Community Executive still do not convince the Belgian Government.
“We have the frustrating feeling of not having been heard“complained the Foreign Minister, Maxime Prevotin the hours before Brussels published the legislative proposals.
“Our concerns are being minimized. The texts that the Commission will present today do not address our concerns satisfactorily. It is not acceptable to use money and leave us alone to face the risks“Prevot insisted.
Once the Community Executive’s proposal was known, the Belgian Prime Minister reiterated that the reparations loan “is not viable.”
“I cannot imagine that the European Commission would dare to confiscate the assets of a private company against the will of a Member State,” insists De Wever. “It’s something never seen before,” he protested.
Taking into account Belgium’s persistent veto, Von der Leyen has also presented an alternative solution that would consist of a new issuance of joint European debt to pay for aid to Ukraine.
However, she herself has highlighted that this option would require unanimity that is impossible to achieve. Not only because of Hungary’s certain veto, but also because the Nordic countries – those that are providing the most aid to Ukraine – have already made it clear repeatedly that they do not accept Eurobonds.
NATO and the US
While Von der Leyen presented her “reparations loan”, NATO foreign ministers met in Brussels to discuss how to intensify military aid to Ukraine.
“We must ensure that Ukraine is in the strongest possible position to stay in the fight, to resist the Russians; and also in the strongest possible position when the peace talks actually get to the point where all parties come to the table,” he said. Mark Rutte.
NATO foreign ministers, during the meeting this Wednesday in Brussels
At the moment, the European allies have already allocated 4 billion euros to the PURL program, which finances the purchase of US weapons to donate to kyiv.
The NATO secretary general has praised Trump’s efforts to seek peace in Ukraine and downplayed the absence of Marco Rubio at the meeting in Brussels, although it is the first time that a US Secretary of State has missed a meeting of the Atlantic Alliance since the time of the Iraq war.
Do you have the impression that the US is consulting enough with European allies? “They are consulting absolutely enough. The teams here at NATO and Marco Rubio’s team are in constant contact. I myself am in permanent contact with the Secretary of State,” Rutte responded.
Marco Rubio, he continued, “is working very intensely on the peace process in Ukraine, but also in relation to Sudan, Gaza and all the other issues in which the Americans are involved. So it seems totally acceptable to me that he is not here.”
Neither the Secretary General of NATO nor the Spanish Foreign Minister, Jose Manuel Albareswanted to comment on the latest threats from Vladimir Putin to launch a war against Europe.
“I do not make comments after comments. But what is clear is that our position here today has to be one of unity, solidarity and reinforcing what NATO is: a defensive alliance, never aggressive, based on deterrence but prepared for any scenario“Albares said.
“NATO is a defensive alliance. We will remain a defensive alliance. But make no mistake: we are prepared and willing to do whatever is necessary to protect our billion inhabitants and secure our territory,” Rutte warned.