“We are advancing our work to meet Ukraine’s financial needs,” Commission President Ursula von der Leyen posted on X on Monday. “We have made good progress, and we plan to table our legal proposals this week.”
The so-called reparations loan is hugely contentious with Belgium’s government, as it would use the cash value of frozen Russian state assets on Belgian soil to finance Ukraine.
Amid fears of Russian retaliation, Belgian Prime Minister Bart De Wever insists that EU governments give Belgium cover with financial guarantees that exceed the €140 billion and that can be paid out within days. He also wants the lifespan of these guarantees to outlast the EU’s sanctions against Russia.
Amid fears of Russian retaliation, Belgian Prime Minister Bart De Wever insists that EU governments give Belgium cover with financial guarantees that exceed the €140 billion and that can be paid out within days. | Emile Windal/BELGA MAG/Belga/AFP via Getty Images
While European governments are open to guaranteeing a pre-agreed figure, they are reluctant to sign up to what they describe as a “blank check.” Four EU diplomats told POLITICO that they cannot accept De Wever’s request because it would put their country’s financial viability at the whim of a court ruling — potentially exposing them to billions of euros of repayments years after the war in Ukraine ends.
“If [the guarantees] are infinite and without limits, then what are we getting ourselves into?” said an EU diplomat who, like others quoted in this story, was granted anonymity to speak freely. The question of how comprehensive the national guarantees should be is shaping up to be among the hardest in the negotiations.
“For many member states, it’s politically difficult to give this blank check,” said a second EU diplomat. They cautioned, however, that it is unlikely that those safety nets will ever be used because the EU’s scheme is legally safe.