EU plans to treat Belgium like Hungary if it doesn't support loan to Ukraine - Politico
Kyiv • UNN
The European Union is developing strategies to persuade Belgian Prime Minister Bart De Wever to support the allocation of 210 billion euros to Ukraine. If Belgium continues to block the plan, it may be ignored at the EU level, similar to Hungary.
Europe's strategy to persuade the Belgians to support its plan to finance Ukraine is to warn them that they could be treated like Hungary, Politico reports, writes UNN.
Details
At the December 18 summit, the key task for EU leaders will be to win the favor of the head of the Belgian government, Bart De Wever. The Belgian Prime Minister is vetoing their efforts to provide Ukraine with a 210 billion euro loan. De Wever has so long stubbornly resisted the plan to finance the loan with frozen Russian assets, which, as it turned out, are mostly stored in Belgium, that diplomats from across the bloc are now working on strategies to get him to cooperate, the publication writes.
De Wever is holding back, fearing that Belgium will be held responsible if the money has to be returned, and has now asked for more safeguards. Almost all Russian assets are held in Euroclear, a financial depository in Brussels.
He wants the EU to provide an additional cash buffer on top of financial guarantees and enhanced safeguards to cover potential legal disputes and settlements - an idea many governments oppose, the publication writes.
Belgium has sent a list of amendments it wants to make to ensure it does not have to return the money to Moscow itself if sanctions are lifted. De Wever said he would not support a "reparations loan" unless his concerns were addressed.
"Leaders thought they would have a deal when they last met all together in October. It was unthinkable then that they wouldn't get it in December. Now it looks unlikely," the publication writes.
According to diplomats, "not all hope is lost yet." "Ambassadors will review Belgium's requests line by line, identify the biggest problems and try to solve them. There is still room for maneuver. The plan is to get as close as possible to Belgium's position," the publication says.
But, as the publication writes, "a week before the meeting, EU leaders are tightening the screws."
If De Wever continues to block the plan - a path he has been on for several months, raising additional conditions and demands - he will find himself in an awkward and extraordinary position for the leader of a country that has been so pro-European for so long.
The Belgian leader will be sidelined and ignored, just like Viktor Orbán of Hungary, who was overlooked due to his retreat from democratic principles and his refusal to cooperate on imposing sanctions against Russia.
The message for Belgium, as stated, is that "if it does not support this idea, its diplomats, ministers and leaders will lose their voice at the EU negotiating table." Officials will put Belgium's wish list and concerns about the EU's long-term budget for 2028-2034 on the back burner, which will cause the government a major headache, especially when negotiations reach the crucial final stretch in 18 months, the publication writes.
His opinions on EU proposals will not be sought. His phone calls will go unanswered, the diplomat said.
This would be a harsh reality for a country that is literally and symbolically at the heart of the EU project, the publication writes.
But diplomats say desperate times call for desperate measures. Ukraine will face a budget deficit next year, estimated at 71.7 billion euros. US President Donald Trump has again distanced himself from providing American support.
"Highlighting the high stakes, EU ambassadors are meeting three times this week - on Wednesday, Friday and Sunday - to discuss the European Commission's loan proposal, published last week," the publication says.
Plan B and Plan C for Ukraine
The European Commission has proposed another option for financing Ukraine: joint debt, backed by the next seven-year EU budget.
Hungary has officially ruled out issuing Eurobonds, and raising debt through the EU budget to support Ukraine requires a unanimous vote.
"Plan C remains: some countries will have to dig into their own treasuries to keep Ukraine afloat," the publication writes.
This prospect, as indicated, is not among the European Commission's proposals, but "diplomats are quietly discussing it." "Germany, the Nordic and Baltic countries are considered the most likely participants," the publication notes.
"But those who put forward this idea have a warning: the most important advantage that EU membership gives to the bloc's countries is solidarity. By forcing some member states to bear the financial burden of supporting Ukraine themselves, the bloc risks a serious split at its core," the publication says.
It is believed that "Germany may not choose to support a failing bank in a country that is not currently allocating money to Kyiv in the future," the publication writes.
"Solidarity is a two-way street," one diplomat said.
"Of course, there is another way, but only in theory. De Wever's EU colleagues could unite and adopt the 'reparations loan' plan by a so-called qualified majority vote, ignoring Belgium's refusals and simply pushing it through. But diplomats said this issue is not being seriously considered," the publication writes.