In a bold challenge to Europe’s hesitant political class, German Chancellor Friedrich Merz is urging EU nations to collectively shoulder the risks of using frozen Russian assets to bankroll Ukraine’s survival. His message is clear: if Europe wants Kyiv to stand, then Europe must finally act like a unified economic power — not a patchwork of competing fears.
Merz laid out his position in a forceful commentary for Frankfurter Allgemeine Zeitung, arguing that every EU member state should “assume a share of the risk in proportion to its economic strength.” The chancellor’s remarks come as Brussels accelerates work on an unprecedented financial package that could redefine the bloc’s role in the Ukraine war.
A Massive Loan Built on Moscow’s Money
On Wednesday, the European Commission unveiled a proposal for a so-called reparation loan worth €165 billion, financed by frozen Russian sovereign assets currently held across EU jurisdictions. According to Politico, which reviewed internal documents, the loan is part of a far larger €210 billion support framework aimed at guaranteeing that Ukraine can continue running its government and defending its territory for years to come.
The proposal would push the EU into uncharted legal and geopolitical territory — a direct attempt to turn the Kremlin’s immobilized wealth into lifeline funding for the nation it invaded.
Belgium Slams the Alarm: “No One Is Listening”
But not everyone is on board. Belgium, home to Euroclear — the financial institution holding the bulk of Russia’s frozen central bank reserves — is once again raising red flags.
Belgian Foreign Minister Maxime Prévot warned bluntly on Wednesday that the Commission is downplaying the legal and financial risks, as well as the danger of Russian retaliation. “We have the unpleasant feeling that no one is listening to us,” he said, criticizing Brussels for forging ahead without addressing Belgium’s core concerns.
Belgium is demanding explicit financial guarantees from other EU member states in case Moscow later succeeds in reclaiming its frozen funds through international litigation.
Merz: Brussels Needs Binding Guarantees, Not Empty Promises
Chancellor Merz surprised many by expanding Belgium’s argument rather than dismissing it. While strongly supporting the use of Russian assets for Ukraine’s defense, he insisted the initiative must rest on solid, legally binding commitments — not vague political assurances.
“Brussels cannot rely solely on political promises,” Merz wrote, calling for unified, enforceable guarantees that protect all member states involved in the loan structure.
His stance places Germany at the center of a sensitive negotiation ahead of the December 18–19 European Council summit, where EU leaders will attempt to untangle the thorniest elements of the financing plan.
A Divided Europe Faces a Defining Choice
With the war entering its third brutal year, Ukraine’s fiscal demands are soaring, and Western support is wobbling. The EU’s reparation loan may become one of the most consequential geopolitical decisions in decades — but only if member states can agree.
For Merz, the moment demands boldness: collective risk, collective responsibility, and collective defense of Europe’s security.
For Belgium, the plan looks dangerously unstable.
For Ukraine, it could mean the difference between enduring the conflict — or collapsing under it.