European Union leaders are convening in Brussels to hold year-end talks with a key decision regarding using frozen Russian funds to strengthen Ukraine’s defense against Russia.
“There is a clear choice: either money now, or blood tomorrow,” warned the Polish Prime Minister Donald Tusk. “I’m not talking about Ukraine alone, I’m talking about the entire continent.”
The 27-nation union is working urgently to fortify Ukraine's position while ex-American leader Donald Trump pushes for a rapid settlement to halt the fighting as the invasion continues towards the fourth anniversary.
A Looming Fiscal Crisis and the Proposed Solution
European officials calculate Ukraine requires an extra €135bn ($159bn) to remain solvent during the next two years, with the cash crunch set to start in April. To plug this hole, the European Commission has put forward a scheme to tap approximately €210bn of Russian central bank reserves seized within the European Union.
Germany's leader Friedrich Merz said the proposal was essential to ramp up pressure on Vladimir Putin and send “a strong message to the Kremlin.”
A Split Union: Resistance and Legal Concerns
However, a notable group of dissenters, spearheaded by Belgium—the home of Euroclear, which holds most the Russian assets—has been voicing concerns about potential juridical challenges. Nations including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also expressed doubts.
From a procedural standpoint, this coalition may not be sufficient to block the plan should a vote be held under qualified majority voting rules. But in practical political terms, it creates the situation extremely difficult for all parties concerned.
But there is no sign of compromise, as the only other pathway—focusing on European Union joint borrowing—would require unanimity, and would likely be obstructed by Hungary, which flatly denies providing any further help for Kyiv.
Leaders’ Statements Ahead of the Talks
EU officials have insisted that the Brussels talks will continue for however long it takes to reach an consensus, warning that the future of Ukraine and the EU's standing are at stake.
- Ursula von der Leyen, the head of the EU executive, said she would not depart from the summit until an deal is reached.
- In a stark contrast, Slovak leader Robert Fico allegedly joked that he could be kept until the new year, and he still wouldn’t support it.
- Ukraine's President Volodymyr Zelenskyy is scheduled to participate in the meeting in a last-ditch effort to persuade the critics.
Strong Opposition from Budapest
The Hungarian leader Viktor Orbán proved to be blunt, calling the idea of using seized assets “foolish” and equivalent to “marching into the conflict.” He expressed agreement for the Belgian cautious stance.
Appeals for Consensus and a Solution
Other leaders stressed the urgency for a resolution.
- António Costa, President of the European Council, pledged: “We will work on this today, and if needed tomorrow, but we will never leave the Council without a final decision.”
- Kaja Kallas, the EU’s foreign policy chief, commented that work to allay Belgium’s worries and share the liability equally were ongoing. She put the chances of a deal at “fifty-fifty.”
- Micheál Martin, Ireland’s leader, said his country was “strongly in favour” of using the frozen assets.
The scene is prepared for a potentially protracted and strained negotiation in Brussels, with the future of significant financial support for a nation at war hanging in the balance.
