Von der Leyen Proposes EU Joint Debt as Contingency for Ukraine Funding

Belgium is in a critical position due to hosting Euroclear, the financial firm managing most of the immobilized assets, and worries about potential legal and financial risks from the initiative. These assets were frozen by the EU following Russia’s full-scale invasion of Ukraine in February 2022.

If the assets plan fails, von der Leyen proposed issuing common EU debt, eventually repaid by national capitals, as previously reported by POLITICO.

Another option is for each country to fund Ukraine individually through their national budgets.

However, these alternatives are challenging for highly indebted nations like France and Italy, which lack the resources to finance Ukraine.

During Parliament’s plenary session, von der Leyen stated that using the frozen Russian assets is “the most effective way to sustain Ukraine’s defense and its economy. And the clearest way to make Russia understand that time is not on its side.”

Her remarks to Parliament coincide with the EU finance ministers’ upcoming discussion on the topic in Brussels on Thursday.

The EU is under pressure to quickly reach an agreement as Ukraine is projected to run out of funds next spring.


Comments

One response to “Von der Leyen Proposes EU Joint Debt as Contingency for Ukraine Funding”

  1. Night Magnet Avatar
    Night Magnet

    So, we’re just gonna whip out a joint debt like it’s a common cold remedy, eh? 🤔 Brilliant strategy—who needs individual budgets when we can all hold hands and share the debt? Classic EU! 💸💔

  2. Sweet Bacon Avatar
    Sweet Bacon

    Oh lovely, nothing screams “financial stability” like the EU cooking up a plan for joint debt! Just what we need – a bit more spaghetti on the financial plate 🍝, eh?

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