European Union leaders are racing to finalise a major financial package for Ukraine as the war with Russia grinds on, framing the decision as a stark choice between immediate funding or far greater human costs later. At a high-stakes summit, leaders are debating an unprecedented proposal to use Russia’s frozen sovereign assets in Europe to back a €90 billion loan for Kyiv. The aim is to help Ukraine sustain its war effort as it faces growing battlefield pressure and a looming financial crisis. Polish Prime Minister Donald Tusk summed up the urgency by warning that Europe faces a choice of “money today or blood tomorrow,” while President Volodymyr Zelenskyy urged a decision before year-end, cautioning that Ukraine could face bankruptcy by spring.
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The proposal, backed strongly by Germany, Sweden, and the Netherlands, would rely on €210 billion of Russian assets frozen in the EU, limiting the burden on European taxpayers. German Chancellor Friedrich Merz called it the only viable option. However, Belgium, which hosts most of the frozen funds through Euroclear, remains reluctant, demanding firm guarantees against potential legal retaliation by Russia. Italy, Malta, and Bulgaria also favour alternative EU borrowing, while Hungary has vowed to veto joint debt.
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As divisions persist, European Commission President Ursula von der Leyen has vowed not to leave the summit without a solution. The talks unfold amid parallel US-led diplomatic efforts, underlining the strategic stakes for Europe’s security and unity as the war enters another critical phase.
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