Under pressure at home, Belgium’s leader treads a tight rope with EU partners over funds for Ukraine
BRUSSELS (AP) — For decades, Belgium has been at the beating heart of the European Union. This is where the headquarters of the main institutions of the 27 bloc and NATO are based. EU leaders meet in Brussels, the capital, at least four times a year.
But at Thursday’s European summit of presidents and heads of government, Belgium and its prime minister were at the heart of political tensions that could impact the world’s largest trading bloc for years to come.
The tensions stem from a plan to use frozen Russian assets to finance Ukraine’s military and economic needs for the next two years. Most of this money is blocked at Euroclear, a financial clearing house based in Brussels.
Belgium fears Russia will retaliate; in court or perhaps by other means.
Prime Minister Bart De Wever – whose political ambition before taking office in February was to dismantle Belgium, gut its state structures and grant more autonomy to its northern region of Flanders – wants Europe to unite around his concerns.
The reparation loan plan, De Wever told Belgian lawmakers on Thursday, “significantly increases the risk of Russian retaliation. It is not acceptable that this happens to Belgium alone. If we jump, we jump together.”
The money stuck at Euroclear – 193 billion euros ($226 billion) as of September – is equivalent to almost a third of the kingdom’s gross domestic product. Belgium is mired in debt and among the worst financial performers in the EU.
For months, De Wever struggled to convince his five-party coalition to agree on a budget. These tortuous negotiations only ended recently, making it difficult for him to accept a loan to Ukraine that could harm Belgium’s finances.
While the “reparation loan” plan was being developed, his government regularly highlighted its vulnerability to retaliation.
After EU leaders last debated the assets in October, Belgian Defense Minister Theo Francken said a series of drone incidents at Belgian airports and military bases appeared to be “a spy operation” aimed at “destabilizing” the population. The culprits have never been identified.
Ahead of Thursday’s summit, Belgian officials pointed out that the Russian central bank had sued Euroclear last Friday for more money than the clearing house actually holds, and warned that more money could be paid out.
Some EU countries believe De Wever has expressed his opposition to the loans too openly and has put himself in a difficult position from which he will find it difficult to escape without embarrassment at home.
Ukrainian President Volodymyr Zelenskyy said he understood “the risks he is talking about, but I think we face greater risks.” He added that “Ukraine is entitled to this money because Russia is destroying us.”
While Belgium stands firm, the question for its EU partners is whether they should simply move forward without De Wever’s consent. Ukraine needs money early next year, and even Belgium agrees that the EU needs to find the funds quickly.
At least nine countries are expected to oppose it to prevent the loans and no blocking minority has yet emerged.
But flouting Belgium, especially a founding EU country with high stakes, could harm EU decision-making. Majorities will surely be more difficult to form in the future and other countries may be more inclined to use their veto.
“Let’s make no mistake. If we fail to do this, the European Union’s capacity for action will be seriously damaged for years, if not for a longer period,” German Chancellor Friedrich Merz said on Monday about the loan plan.
The question for De Wever is whether the legal and financial costs that Belgium could suffer would be greater than the costs linked to the damage to his country’s credibility with its European partners and with Ukraine.
Whichever path is chosen, EU Council President António Costa has pledged to continue negotiations until a funding deal is reached, even if it takes days. It looks like De Wever has the power to make it happen before he turns 55 on Sunday.
