Belgium proposes extraordinary measures to EU to aid Ukraine - Euractiv

Four unnamed EU diplomats told the outlet about Belgium’s idea, which is intended to serve as an alternative to the reparations loan.

As with sanctions policy, issuing joint debt backed by the EU’s long-term budgetary capacity requires unanimous support from all 27 EU countries. Joint debt is the only alternative to the reparations loan that has been officially proposed by the European Commission.

One of the unnamed EU diplomats said that European Central Bank President Christine Lagarde raised the possibility of using Article 122, which allows the EU to take extraordinary measures in crisis situations through a qualified majority procedure, last week during a meeting of EU finance ministers in Brussels.

"If you can use (Article) 122 in a sanctions regime decision, prolonging the immobilisation, then surely you can use it for issuing debt against the EU budget headroom," the diplomat quoted Lagarde as saying.

At the same time, two unnamed diplomats claim that the EU Legal Service ruled out the possibility of applying Article 122 for issuing joint debt at yesterday’s meeting of EU ambassadors.

Belgium against the reparations loan

Belgium opposes the idea of providing Ukraine with a loan backed by Russia’s frozen assets.

The country’s concerns are explained by the fact that a large portion of the assets is held in Belgium’s Euroclear depository. Belgian authorities fear that Russia could use the courts to reclaim the frozen assets.

It was previously reported that Ukrainian President Volodymyr Zelenskyy will attend the EU summit on December 18–19, where the reparations loan will be discussed.