EU unity tested as Belgium resists high-stakes Ukraine loan proposal

Tensions are mounting within the European Union over Belgium’s continued resistance to the bloc’s plan to use immobilised Russian assets to finance a €140 billion loan for Ukraine.

The issue triggered a confrontational exchange on November 25 in Strasbourg, where EU foreign policy chief Kaja Kallas delivered a forceful defence of the proposal during a closed-door meeting with EPP lawmakers—leaving several participants taken aback, Euractiv reports.

Belgian MEP Wouter Beke reiterated Prime Minister Bart De Wever’s concerns that the loan mechanism poses unacceptable legal and financial risks for Belgium, especially given that the Brussels-based clearing house Euroclear would be uniquely exposed. For now, the loan scheme remains the Commission’s preferred solution for ensuring Ukraine’s financial stability next year.

“She wondered why Belgium was so worried. Which court was Russia going to go to? Which judge would ever rule for Russia on this?” said one attendee, adding that Kallas compared the situation to Iraq’s obligation to pay more than $50 billion in reparations to Kuwait after the 1990 invasion. Another participant described her remarks as “very condescending,” while a third called her tone “incredible.” One non-Belgian MEP summarised the message as: stop complaining, though another insisted Kallas was simply presenting the facts. According to two people, Kallas also referenced her Estonian background, suggesting she understands Russia’s behaviour better than Belgian officials.

Despite floating the idea to EU leaders last month—reportedly inspired by Friedrich Merz—the Commission has not yet found a compromise that would address Belgium’s concerns. Kallas will host a videoconference of EU foreign ministers today, where the contentious plan is expected to resurface.

Meanwhile, the EU’s “Coalition of the Willing” reaffirmed support for Ukraine. Commission President Ursula von der Leyen praised “solid and encouraging progress,” while Ukrainian President Volodymyr Zelenskyy signalled readiness to meet US President Donald Trump.

Commentary in Euractiv by Simon Nixon argued that Belgium’s concerns are legitimate, citing the real risk of Russian retaliation, Euroclear’s disproportionate exposure, and the untested nature of the Commission’s plan. EU leaders still hope to reach an agreement at the European Council in late December. “If it’s not done, it will be problematic for the Belgians,” one diplomat warned.

Additional political turbulence is unfolding across the EU—from Spain’s gridlocked government to intra-Commission clashes over the upcoming environmental “omnibus” package and intensifying disputes in Parliament over migration and deforestation rules—highlighting deepening fractures as the bloc confronts a turbulent end to the year.

By Vafa Guliyeva