With regard to the Ukraine conflict, northern countries deny opposing eurobonds due to concerns about the solvency of other EU nations, but they argue the assets would provide a more substantial long-term cash boost for Ukraine.
“This is not about frugals versus spenders. It’s about being pro-Ukraine or not,” said a second EU diplomat, noting that northern and eastern European countries have led efforts in supporting Ukraine’s wartime needs over the past four years.
Backing the Belgians
After extensive negotiations over the assets, attempts to sway Belgium have been counterproductive. Belgium staunchly opposes the use of Russian funds held by Euroclear in Brussels, gaining support from other allies.
“[The Commission] created a monster, and they’ve been eaten by it,” said a third EU diplomat concerning the asset strategy.
Germany and its allies caution there remains no alternative to targeting Euroclear funds.
“If you want to do something together as Europeans, the reparations loan is the only way,” stated a fourth EU diplomat.
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