The Chancellor wants 140 billion euros from the “frozen” Russian funds Friedrich Mertz to be given to the Ukraine from the European Union.
“This loan will only be repaid when Russia compensates Ukraine for the damage it has caused it,” Friedrich Mertz writes in an article published in the Financial Times entitled “A new financial boost for peace in Ukraine”.
The German Chancellor calls on the EU to use assets of the Russian Central Bank that have been frozen after the invasion of Ukraine, in order to finance the country’s war effort and to highlight the strength against Russian aggression.
The EU “has to find a legal mechanism to use this money, as it is imperative to systematically and greatly increase the cost of Russia’s attack – perhaps at the October Summit that could be assigned such a plan,” he said, and he adds that the EU can be made. without intervening in ownership rights.
“I propose the mobilization of financial resources at a height that will ensure the strength of the Ukrainian army for several years,” he points out, noting that funds should be allocated exclusively for the supply of military material and not to fill gaps in the country’s budget.
“Such an overall program should also help to strengthen and expand the European Defense Industry. This would serve both our collective security and European sovereignty, “the Chancellor writes.
Mr Mertz also explains that the Member States would have to guarantee the loan before securing the money from the next EU budget in 2028, while the mechanism should be agreed by a “vast majority” of Member States, implying that it is in favor of a structure that will not allow it.
The tool should also be open to non -EU members who own Russian assets and wish to support Ukraine. For this reason, the Chancellor will seek, as he says, coordination with the team of seven (G7).
In a report, the British newspaper reports that among the scenarios examined in Brussels is the cash balances of the assets to be used to buy EU bonds at zero interest rate or to use a special purpose tool for managing funding arrangements, which could be allowed.
“Now is the time to apply an effective lever that will disturb the cynical game with which the Russian president buys time and bring him to the negotiating table (…)
It takes courage and confidence to define his own agenda instead of simply reacting to that of (Vladimir) Putin, “says Friedrich Mertz, adding that in this way” we would also send Washington to the right message, that we must walk together “.