Von der Leyen presses EU leaders for decision on Ukraine loan, but divisions persist
A decision on how to secure funding for Ukraine over the next two years must be taken at this week’s European summit, European Commission president Ursula von der Leyen said in the European Parliament on Wednesday. Doing so will not be straightforward, as European countries remain divided on the issue.
EU heads of state and government meet in Brussels on Thursday and Friday, with Ukraine financing high on the agenda. The Commission has so far failed to persuade Belgium, where most of the frozen Russian assets are held at Euroclear, to support the plan. Belgian authorities fear the country could face disproportionate risks.
Von der Leyen reminded lawmakers in the European Parliament that the Commission has also proposed a common EU loan as an alternative. "We will have to decide which way we want to take. But one thing is very clear, we have to take the decision to fund Ukraine for the next two years this European Council," she said.
"We have to take the decision to fund Ukraine for the next two years this European Council"
A common loan would require unanimity among member states, which currently appears out of reach due to opposition from pro-Russian governments like Hungary. By contrast, a loan backed by frozen Russian assets could in principle be approved by a qualified majority.
Manfred Weber, leader of the conservative EPP group to which von der Leyen belongs, also urged EU leaders to reach an agreement to avoid what he called a "historic failure". Like German chancellor Friedrich Merz, he described Belgium’s demand for risk-sharing among member states as "legitimate".
Divided Europe
The Commission has signalled that it does not intend to override Belgium in its efforts to secure funding for Ukraine. Foreign Affairs commissioner Kaja Kallas said earlier this week that "without Belgium, it won't be easy. They hold the majority of the funds, and it's important they're on board."
Additionally, opposition to confiscating frozen Russian assets appears to be growing among member states. Italy, Bulgaria and Malta have urged the EU to explore "alternative options" to the asset-backed loan, calling for solutions with "predictable parameters" and "significantly less risks".
"Without Belgium, it won't be easy"
The pro-Russian governments of Hungary, Czechia and Slovakia are also strongly opposed to confiscating the assets. On Wednesday, Hungarian prime minister Viktor Orban threatened to withdraw Hungarian funds held in Belgium if such a move were taken. At the same time, those countries also oppose a common EU loan for Ukraine, which would require unanimity.
Despite von der Leyen’s call for urgency, there is a real risk that this week’s summit will end without a decision on Ukraine financing. For Kyiv, that would be the worst-case scenario, as Ukraine could face a funding shortfall to sustain its war effort early next year.
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