EU countries accuse Belgium of excessive demands regarding financial guarantees for a €140 billion reparations loan to Ukraine from frozen Russian assets, Politico reports, citing sources.
Source: “Espreso”
Belgian Prime Minister Bart De Wever demands that the guarantees exceed the loan amount and that their duration surpass the EU sanctions against Russia, fearing potential claims and lawsuits from the Russian Federation.
In the EU, such conditions are called a “hollow check.” Diplomats are blocking the demands because indefinite guarantees could threaten the financial stability of states, forcing them to pay billions of euros even after the war in Ukraine ends.
If an agreement on the loan cannot be reached, an alternative could be the issuance of additional EU debt obligations, but most governments do not support this idea due to the use of taxpayers’ funds.
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