Karel Lannoo, chief executive of the Centre for European Policy Studies in Brussels, believes that due to a lack of fiscal discipline in some EU countries, eurobonds will likely not be accepted, especially by frugal nations, in the next decade. He suggests that using frozen Russian assets seems to be the only viable option. “€140 billion is a significant amount, and we must utilize it to demonstrate our courage,” Lannoo stated.
European governments and the European Central Bank are gradually considering using seized Russian assets to fund the €140 billion. Initially, the idea was met with hesitation due to legal and moral concerns, despite Russia’s actions. However, Ukraine’s urgent needs and Washington’s uncertain stance have refocused priorities.
During a recent EU summit, Belgium’s Bart De Wever opposed the plan, which requires approval from all 27 EU governments. This has delayed the decision until at least December.
With Ukraine facing a financial deadline at the end of March, the EU is racing to finalize the plan amidst potential complications involving Hungary, Czechia, and Slovakia forming a Ukraine-skeptic alliance. Commission officials are trying to navigate a fine line to secure the assets plan, according to three EU diplomats.
“This is diplomacy,” one diplomat noted, explaining the strategic maneuvering involved. Another diplomat dismissed the idea of eurobonds as a serious alternative, calling it “laughable.”
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