How EU Leaders Struck a €90 Billion Deal for Ukraine
EU leaders gathered for their final meeting of the year, with a packed agenda that officially centered around EU expansion. However, the real focus was on Ukraine's financial future.
Frozen Russian Assets: A Contentious Issue
The initial proposal involved using frozen Russian assets held in Belgium to fund Ukraine. This idea, however, faced significant opposition.
Key Players in the Debate:
- Belgium's Prime Minister, Bart de Wever: Argued that using Belgian-held assets could negatively impact the country's financial sector and the broader eurozone.
- Italy's Giorgia Meloni and Hungary's Viktor Orbán: Raised concerns about the plan.
- Viktor Orbán: Added a touch of humor to the tense discussions with a joke about the situation.
The Shift in Strategy
The plan to use frozen Russian assets was ultimately abandoned. Instead, the EU agreed to issue joint debt backed by the EU budget to fund Ukraine. This alternative, known as "enhanced cooperation," allowed some countries to opt out while others contributed.
Countries Agreeing to the Approach:
- Hungary (Viktor Orbán)
- Czech Republic (Babiš)
- Slovakia (Fico)
A Victory for Ukraine, a Setback for Others
The deal was a significant win for Ukraine, ensuring it would receive the necessary funds. However, it was a setback for German Chancellor Friedrich Merz and Commission President Ursula von der Leyen, who had strongly supported the original plan.
The final agreement included a vague mention of possibly using frozen Russian assets in the future, but no clear plan was outlined.
A Testament to EU's Resilience
This summit demonstrated that the EU can make big decisions even when not all members agree. It proved that the EU can find solutions and move forward, despite its complexities.
