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european Union leaders are gathering on Thursday for a summit aimed at reaching agreement on a massive loan to cover ukraineIts military and other financial needs for the next two years.
Leaders will also discuss migration, the bloc’s enlargement policy, trade and economies, but the International Monetary Fund says how to finance most of the 137 billion euros ($160 billion) needed by war-ravaged Ukraine is the top priority.
The President of the European Commission said, “It is up to us how we finance the fight for Ukraine. We know the urgency of it. It is serious. We all feel it. We all see it.” Ursula von der Leyen told EU lawmakers on the eve of the summit.
European Council President Antonio Costa, who is chairing Thursday’s meeting in Brussels, has vowed to keep talks with leaders until an agreement is reached, even if it takes days.
Many leaders will press for the tens of billions of euros of Russian assets frozen in Europe to be used to meet Ukraine’s economic and military needs.
Such a decision has never been taken before, and it comes with risks. European Central Bank warned that if Europeans appear willing to grab other countries’ money, it could undermine confidence in the euro. Some member countries are also worried about retaliatory action from Russia.
belgiumThe scheme’s main rival is the Financial Clearing House, where most of the frozen assets are held. He fears that Russia will retaliate and wants the group to borrow money from international markets.
Last week, the Russian Central Bank sued Belgian clearing house Euroclear in a Moscow court, increasing pressure on Belgium and its European partners ahead of the summit.
Hungary and Slovakia oppose von der Leyen’s “compensation loan” plan. Ukraine will be given a loan of about 90 billion euros ($105 billion) until Russia ends its war and compensates for losses incurred over nearly four years. Ukrainian President Volodymyr Zelensky says the total amounts to more than 600 billion euros ($700 billion).
The UK, Canada and Norway will fill the gap of more than 90 billion euros ($105 billion).
Bulgaria, Italy and Malta are also convinced. In recent weeks, EU envoys have worked to iron out details and iron out differences between the 27 member states. If enough countries object, the plan could be blocked. There is no majority support for Plan B of raising funds from international markets.