With respect to the Ukraine war, the northerners deny they oppose the use of eurobonds over concerns about the solvency of other EU countries, but argue they prefer the assets because they would provide a greater long-term cash infusion to Ukraine.
“This is not about frugals versus spenders. It’s about being pro-Ukraine or not,” said a second EU diplomat, adding that northern and eastern European countries have taken the lead in bankrolling Ukraine’s war needs over the past four years.
Backing the Belgians
Despite weeks of painstaking negotiations over the assets, efforts to bring Belgium around are backfiring. The country adamantly opposes using the Russian money held by Euroclear in Brussels, and has now attracted allies.
“[The Commission] created a monster, and they’ve been eaten by it,” said a third EU diplomat, referring to the assets plan.
Germany and its allies, however, warn there is still no alternative to targeting the Euroclear money.
“If you want to do something together as Europeans, the reparations loan is the only way,” a fourth EU diplomat said.