"Friedrich Merz's three-month bid to catapult Germany into the role of undisputed leader of Europe has come unstuck. His call for Europe to hand Ukraine access to 201bn (176bn) in frozen Russian central bank assets via a reparations loan was rejected at a decisive European Council meeting in Brussels. Instead, Ukraine is to be given a 90bn interest-free loan, backed by the EU's collective budget, covering two-thirds of what Ukraine will need between 2026-27."
"Merz had been unable to break the resistance of Belgium, which said the raid on the Russian funds, stored mainly in Brussels-based Euroclear, was unlawful. Opposition had also come from France and Italy, who both insisted they would not cover the cost of indemnifying Belgium against legal claims. Going into the summit, Merz had insisted using the Russian assets was the only option, and the defining test of Europe's ability to act decisively in its own interest."
"Despite the reverse, it seems unlikely Merz will back away from the role he sees Germany as required to fulfil, or revert to being the meek partner in an archaic Franco-German motor. A self-confessed disillusioned Atlanticist, Merz is convinced by two principles: that Europe's security is inextricably allied with Ukraine's, and that something fundamental has changed in the transatlantic relationship."
Friedrich Merz pushed for Europe to grant Ukraine access to €201bn in frozen Russian central bank assets via a reparations loan, but the proposal was rejected at a European Council meeting in Brussels. The council instead approved a €90bn interest-free loan backed by the EU budget, covering about two-thirds of Ukraine's 2026–27 needs. Belgium objected, calling a raid on funds stored mainly in Brussels-based Euroclear unlawful, while France and Italy refused to indemnify Belgium against legal claims. Merz had reversed his earlier position, personally lobbied leaders, and remains committed to a leadership role linking European security to Ukraine and changing transatlantic relations.
Read at www.theguardian.com
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