EU Considers Joint Debt Plan After Frozen Russian Asset Loan Falters for Ukraine Funding

EU leaders remain divided over how to finance Ukraine's military and financial needs for 2026 and 2027, particularly regarding a proposed €140 billion "reparations loan" backed by frozen Russian assets. Nordic leaders, including Denmark's Prime Minister Mette Frederiksen and Finland's Petteri Orpo, strongly favor using these immobilized Russian funds, viewing it as a political imperative. However, Belgium, which holds most of the frozen Russian assets, has blocked this plan due to legal concerns and fears of retaliation, leading to a deadlock at the recent EU summit. As a result, the European Commission is now considering alternative options including issuing joint EU debt, a strategy that some member states resist due to their own financial burdens. Additionally, there is a third, less favored option to halt financial support for Ukraine, supported mainly by Hungary. The European Commission aims to present a comprehensive proposal outlining these alternatives by December, with the goal of securing Ukraine's financial lifeline amid ongoing conflict.