The European Union is racing against time to finalize a groundbreaking financial plan aimed at supporting Ukraine’s defense effort, but internal disagreements threaten to derail what was intended to be one of Europe’s strongest geopolitical signals since the start of the war.
For months, EU leaders have explored a strategy to transform approximately €210 billion worth of frozen Russian state assets — largely held in Belgium — into a major loan package for Ukraine. The funds, if successfully unlocked, would provide Kyiv with long-term financial stability and stronger leverage in future negotiations with Moscow.
However, despite extensive diplomatic efforts, the bloc has struggled to reach a consensus. What began as a bold demonstration of European unity is now at risk of becoming a public display of divisions at a time when Europe is increasingly sidelined in key discussions about Ukraine’s future.
New Proposal Introduced to Break the Deadlock
In a renewed push to salvage the plan, EU policymakers on Wednesday unveiled a revised proposal featuring alternative legal mechanisms that would allow the initiative to move forward even without unanimous approval from all member states.
The updated framework is scheduled for debate during the European Council summit in Brussels on December 18. Officials hope the legal adjustments will help bypass Hungary’s opposition, which has been a major obstacle to unanimous agreement.
Yet Hungary is not the only challenge. Belgium, the country where the majority of the Russian assets are frozen, has expressed persistent concerns about the legal risks and geopolitical consequences of such an unprecedented move.
Possibility of a Smaller Support Package
As doubts grow, EU diplomats admit that the ambitious plan may ultimately need to be scaled down. European officials on Wednesday introduced a less expansive backup option, signaling the bloc’s recognition that the original design may not withstand political resistance.
Analysts warn that failure to execute the plan could further weaken the EU’s international standing — especially at a moment when the United States continues to dominate diplomatic efforts related to Ukraine, including recent peace discussions from which Europe has been notably absent.
A Test of Europe’s Credibility
Securing a unified approach to funding Ukraine has become a symbolic test of Europe’s commitment to its own foreign policy ambitions. With the war’s future uncertain and Kyiv facing ongoing financial needs, the EU’s ability — or inability — to act cohesively will shape its geopolitical credibility for years to come.
As the December summit approaches, European leaders must decide whether they can bridge their differences and deliver the financial support Ukraine urgently requires, or whether internal discord will once again overshadow Europe’s global aspirations.
