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European Union leaders are convening in the Belgian capital for end-of-year discussions facing a pivotal choice on the use of frozen Russian Federation assets to boost Ukraine’s defence against Moscow.

“We have a clear option: either money now, or bloodshed tomorrow,” warned Poland’s Prime Minister Donald Tusk. “This isn't just about Kyiv only, this concerns the entire continent.”

The 27-member union is scrambling to strengthen Kyiv’s hand while ex-American leader Donald Trump pushes for a quick settlement to halt the conflict as the invasion drags towards the four-year mark.

A Looming Fiscal Crisis and the Controversial Solution

European officials calculate the nation requires an additional €135bn ($159bn) to stay afloat during the 2026 and 2027, with the funding shortfall set to start in the spring. To fill this hole, the European Commission has put forward a plan to tap some €210bn of Russian central bank reserves frozen within the bloc.

Germany's leader Friedrich Merz said the proposal was critical to increase pressure on Vladimir Putin and send “a clear message to the Kremlin.”

A Divided Union: Opposition and Legal Doubts

However, a significant group of dissenters, spearheaded by Belgium—the home of Euroclear, which custodies most the Russian assets—is raising questions about potential legal issues. Nations including Bulgaria, the Czech Republic, Italy, Malta, and Slovakia have also expressed doubts.

From a procedural standpoint, this coalition is not enough to veto the plan if a vote gets called under qualified majority voting rules. But in practical political terms, it creates the situation extremely difficult for everyone involved.

But there is little indication of compromise, as the only other option—relying on European Union joint borrowing—would require unanimous approval, and would likely be blocked by Hungary, which flatly denies providing any additional help for Ukraine.

Officials' Statements Before the Talks

EU leaders have stated emphatically that the summit discussions will last as long as it takes to achieve an consensus, warning that Ukraine’s survival and the EU's standing are on the line.

• Ursula von der Leyen, the European Commission president, declared she would not depart from the meeting until an deal is concluded.
• In a stark contrast, Slovak Prime Minister Robert Fico allegedly remarked that he could be kept until the new year, and he still wouldn’t back it.
• Ukraine's President Volodymyr Zelenskyy is scheduled to participate in the meeting in a final effort to persuade the skeptical nations.

Firm Resistance from Hungary

The Hungarian Prime Minister Viktor Orbán proved to be uncompromising, calling the proposition of utilizing frozen assets “foolish” and amounting to “marching into the war.” He expressed support for the Belgian cautious stance.

Appeals for Unity and a Resolution

Several other EU heads of state stressed the critical need for a resolution.

• António Costa, European Council president, pledged: “We will work on this today, and if needed tomorrow, but we will not depart from the summit without a final decision.”
• Kaja Kallas, the EU’s foreign policy chief, noted that efforts to address Belgium’s worries and share the liability equally were ongoing. She put the odds of a deal at “fifty-fifty.”
• Micheál Martin, Ireland’s Taoiseach, stated his nation was “very much in favour” of the use of the frozen funds.

The stage is set for a potentially long and tense negotiation in the EU capital, with the fate of significant monetary aid for Ukraine hanging in the balance.