BRUSSELS — Belgium continues to reject the European Commission's proposal for additional guarantees that would unblock a €210 billion loan to Ukraine financed from frozen Russian assets. This has dashed the EU's hopes of reaching an agreement before Thursday's summit of leaders, according to Politico.
In recent days, the European Commission has been trying to persuade member states to support a loan that would use billions of euros of Russian reserves held at the Brussels-based clearing bank Euroclear to support Ukraine's war-torn economy.
The talks will continue on Tuesday, while diplomatic efforts to end Russia's nearly four-year invasion of Ukraine saw some progress during Monday's meeting of Western leaders and American envoys in Berlin.
After days of negotiations, the Commission proposed legal amendments on Monday that were intended to gain Belgium's approval. According to a document seen by Politico, it provided legal guarantees that Belgium could draw up to €210 billion in the event of legal disputes or Russian retaliatory measures. At the same time, it stipulated that no funds would be paid to Ukraine until Member States provided financial guarantees for at least 50 per cent of the amount.
Another concession was the recommendation that all EU countries terminate their bilateral investment agreements with Russia so that Belgium would not be left alone in the event of retaliation by Moscow.
However, even that was not enough. During Monday's meeting of EU ambassadors, Belgium announced that it considered the proposed guarantees to be insufficient. „The agreement will not be concluded before the European Council meeting.“ said one of the diplomats.
Belgium is concerned that it would have to bear full financial responsibility in the event of Russian legal action. Its position has been supported by Italy, Malta, Bulgaria and Czechia, which are calling for alternatives to be considered, such as joint European debt.
While France publicly supports the plan to use Russian assets, sources close to President Emmanuel Macron say that Paris remains neutral on the issue of Russian money or Eurobonds. Germany, on the other hand, insists that there is no other realistic option and warns that failure would seriously damage the EU's ability to act. Critics argue, however, that resistance to joint debt comes not only from Hungary but also from fiscally cautious states.
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