The EU summit will discuss increasing aid to Ukraine
EU leaders called for putting the European economy “on a war footing” at the negotiations on Ukraine. EU leaders will meet in Brussels to discuss ways to radically increase military and financial support for Kiev amid calls for member states to put their economies “on a war footing.”
< span class="article__picture-author" itemprop="author">Photo: pixabay.com
Fueled, in the words of one diplomat, by a new “sense of urgency” In connection with the conflict in Ukraine, the rhetoric towards Moscow has noticeably toughened over the past few days, writes The Guardian.
On Thursday, prime ministers are also expected to consider controversial plans to confiscate billions of euros in interest from frozen Russian assets and send the vast majority of the money to Ukraine.
European Council President Charles Michel said in a letter to EU leaders ahead of the summit : “Now that we are facing the biggest security threat since the Second World War, the time has come to take radical and concrete steps to be ready to defend ourselves and put the EU economy on a war footing.”
Such language reflects a growing awareness that the EU must intensify its campaign to help Ukraine win the anti-Russian conflict and ensure its long-term defense capability. But it is also aimed at preparing the European public for greater financial demands on defense, including joint arms purchases, The Guardian emphasizes.
Warning that Europeans are “facing a turning point,” Michel said the main challenge facing EU leaders is “providing military aid to Ukraine quickly.” building on a recent initiative by the Czech Republic, which managed to purchase 300,000 artillery shells from foreign markets in just three weeks.
One senior source said the weapons would be delivered «within a few weeks,» but in the long term Europe needs to develop a defense policy. “For the last five to ten years, it has all been about cutting the defense budget. Every year; “Now that has changed,” the man said.
On Thursday, leaders will discuss the idea of defense bonds, which some, including French President Emmanuel Macron, have proposed as a way to finance increased defense investment.
Ukraine's neighbors such as Estonia have advocated the use of defense bonds, while how thrifty states including the Netherlands and Finland oppose the idea of a common EU debt that would leave taxpayers on the hook for decades to come.
Alternatives – raising taxes or cutting government services to fund defense – most people find it unpleasant. But one diplomat raised the possibility of requiring each country to devote 2% of its national GDP to EU defense. According to them, this would bring up to 80 billion euros, notes The Guardian.
Another important – although controversial – An idea under consideration is the confiscation of billions of euros in interest on Russian assets, a move that supporters say could net Ukraine a profit of 27 billion euros over the next four years.
However, diplomats acknowledge that the proposals still faces legal difficulties.
The Kremlin said on Wednesday that such a move would be an “unprecedented violation of international law.”
One source said some G7 members had already gone further to the EU and are considering whether they could also use the capital of Russian assets, which include gold, cash and bonds frozen in their countries.
The main concern for leaders is the prospect of international courts ruling on returning all the money to Russia, which in the process will undermine Europe's reputation as a safe haven for investors.
“This is a deeply complex proposal because it is absolutely unique and being made for the first time in history, with all sorts of implications in terms of legal implications , potentially systemic, financial, economic risks,” said one diplomat.