Tista’ taqra bil-
Malti.

(Video: Miguela Xuereb)

Prime minister Robert Abela reiterated Malta’s reservations on EU plans for a “reparations loan” to Ukraine using immobilise assets on Wednesday, ahead of a crucial EU summit which as yet shows little indication of achieving a meaningful solution.

The EU’s key plan is to utilise these immobilised assets to provide Ukraine with an interest-free loan, but this unprecedented proposal has sharply divided EU leaders, with a key objector being the country which holds the most frozen Russian assets: Belgium.

Malta has joined Belgium, Italy and Bulgaria in calling for alternatives to the proposal, and on Wednesday, shortly before heading to Brussels, Abela insisted that any arrangement used to assist Ukraine would not harm the EU’s competitiveness or single market.

“Or worse still, leave member states liable for damages,” he added.

The prime minister insisted that the EU needed to be “very careful” and said that he hoped that the intensive discussions that are going on – and are expected to continue in this week’s summit – would prove fruitful

But at the summit, he emphasised, “we must deliver the message that we need to avoid heading in directions that we may regret in the future.”

Abela repeatedly stressed that Ukraine deserved Europe’s full support as he made his case.

He also insisted that it was important for the EU to present a united front at the summit, which will be held between Thursday and Friday.

A potentially unworkable dilemma for the EU

One potential advantage to the reparations loan agreement – at least as far as EU negotiations are concerned – is that it could technically be approved by a qualified majority: a minimum of 15 member states representing at least 65% of the bloc’s population. So even the objections of Malta, Belgium, Italy and Bulgaria – along with those of Czechia, Hungary and Slovakia, preently led by governments broadly hostile to Ukraine – could be overruled.

However, forcing through the arrangement over such strong objections may prove politically unsustainable, not least since it would mean outvoting the country – Belgium – which would be most exposed to any potential consequences that may arise.

Another potential arrangement would be for the EU to lend unallocated funds from the EU budget – a move that Malta, Belgium, Italy and Bulgaria confirmed they would not object to.

But this may prove even more unworkable since it would require unanimous support, unanimity which appears all but impossible given Hungary’s outright objection to providing more assistance to Ukraine.