European Union heads of state have gathered in Brussels for end-of-year talks with a pivotal choice on the use of frozen Russian funds to boost Ukraine’s defence against Russia.
“There is a simple choice: either money today, or else bloodshed in the future,” warned Poland’s Prime Minister Donald Tusk. “This isn't just about Ukraine only, this concerns the entire continent.”
The 27-member bloc is working urgently to strengthen Kyiv’s hand while ex-American leader Donald Trump pushes for a quick settlement to halt the fighting as the war drags towards the fourth anniversary.
The Financial Crunch and the Controversial Plan
European officials calculate Ukraine requires an additional €135bn ($159bn) to remain solvent over the 2026 and 2027, with the funding shortfall expected to begin in the spring. To plug this hole, the EU's executive arm has proposed a scheme to access some €210bn of Moscow's state reserves frozen in the European Union.
German Chancellor Friedrich Merz argued the assets plan was critical to increase pressure on Vladimir Putin and send “a clear message to Russia.”
A Split Bloc: Resistance and Legal Doubts
However, a notable group of dissenters, spearheaded by Belgium—the home of the clearing house Euroclear, which custodies most the frozen funds—has been voicing questions about potential legal issues. Nations including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also registered doubts.
Technically, this coalition may not be enough to veto the proposal should a vote be held under qualified majority voting procedures. Yet in practical political terms, it creates the process very awkward for everyone concerned.
But there is little indication of a middle ground, as the only other option—relying on European Union joint borrowing—would require unanimous approval, and would likely be obstructed by Hungary, which flatly denies any further assistance for Ukraine.
Leaders’ Comments Before the Talks
EU leaders have stated emphatically that the summit discussions will last as long as it takes to achieve an agreement, warning that the future of Ukraine and the EU's standing are at stake.
- Ursula von der Leyen, the head of the EU executive, declared she would not depart from the summit until an agreement is concluded.
- In contrast, Slovak Prime Minister Robert Fico allegedly joked that they can keep him there until the new year, and he still wouldn’t back it.
- Ukrainian President Volodymyr Zelenskyy is set to participate in the meeting in a last-ditch attempt to persuade the critics.
Strong Opposition from Budapest
Hungary’s Prime Minister Viktor Orbán was uncompromising, calling the proposition of utilizing frozen assets “stupid” and equivalent to “marching into the conflict.” He expressed support for the Belgian cautious position.
Appeals for Consensus and a Resolution
Several other leaders emphasized the critical need for a decision.
- António Costa, European Council president, pledged: “We will work on this today, and if needed tomorrow, but we will never leave the Council before reaching a conclusive agreement.”
- Kaja Kallas, the EU’s top diplomat, noted that efforts to address Belgium’s worries and distribute the risk fairly were ongoing. She put the odds of a deal at “fifty-fifty.”
- Micheál Martin, the Irish leader, stated his nation was “very much in favour” of the use of the frozen funds.
The scene is prepared for a potentially protracted and tense bargaining session in the EU capital, with the fate of significant financial aid for a nation at war resting in the balance.
