Ursula defeated: 16 Hours of debate Mercosur delayed and Russian assets off the table
Euro Weekly News20 hrs
EU Agrees on €90B Loan to Ukraine, Fails to Use Russian Assets
Is this a positive result for the EU, or did its leaders narrowly avoid making a fatal misstep?
Above: Danish Prime Minister Mette Frederiksen (L), E.U. Council President António Costa (C) and EU Commission President Ursula von der Leyen (R) at an EU Summit in Belgium on Dec. 19. Image credit: Michael Kappeler/picture alliance/Getty Images
The Spin
Pro-Europe narrative
In October, the EU decided to help Ukraine meet its budget commitments, and as a result of Friday's agreement, it has delivered for the Ukrainian people. This is not to prolong the war, but it shows Russia that Europe remains by Ukraine's side and is a means of forcing Russia to the negotiating table. Ukraine does not have to repay the funds until Russia pays reparations, and the EU reserves the right to use immobilized Russian assets at a later stage.
Establishment-critical narrative
Thank goodness that due to the stance taken by a handful of European leaders, common sense prevailed and the plan to fund a loan to Ukraine via Russian assets failed. This plan was legally questionable at best and would have had a far-reaching impact on the future of the Euro as a reserve currency. Why would countries hold funds in Europe if they can simply be confiscated? Europe's confrontational stance, once met with the real-world consequences, has once again failed.
Pro-Ukraine narrative
Ukraine is grateful to the leaders of the EU who, via the loan agreement, have allowed the country to meet its financial obligations for the next two years. This is incredibly important for the resilience of the country. In the meantime, it is essential that frozen Russian assets remain immobilized for the foreseeable future.
Pro-Russia narrative
Russia is grateful to the actions of Belgium, Hungary, Slovakia and the Czech Republic who protected the principle of property rights and exposed the incompetence of the warmongering EU elites who pushed these illegal actions. They also saved the EU from itself in helping to prevent the investor exodus that would have followed if the plan to confiscate Russian assets succeeded.