Overview
- EU economy and finance ministers are discussing the proposal in Luxembourg, with leaders slated to review it on October 23–24 under a timeline targeting first disbursements in the second quarter of 2026.
- Belgian Prime Minister Bart De Wever set red lines that include legally binding, open-ended guarantees sharing all current and future risks for Euroclear and Belgium, with coverage potentially exceeding €170 billion.
- The Commission says the plan uses matured cash linked to frozen sovereign assets at Euroclear to finance the loan and repay a prior G7 facility, stressing it is not confiscation.
- Options under debate to satisfy Belgium include bilateral guarantees from member states and potential budgetary backstops in the EU’s next financial framework.
- The ECB and Euroclear warn that any move resembling seizure could damage the euro’s standing and market confidence, while Russia threatens legal and other retaliation if its assets are used.