German Chancellor Merz calls on EU to transfer frozen russian assets to Ukraine

Friedrich Merz told the Financial Times about this.

The German Chancellor believes that the European Union must find a legal mechanism for using frozen russian assets. He said that it is extremely important to ‘systematically and massively increase defence spending due to russia's aggression.’

Friedrich Merz believes that the EU could provide Ukraine with an interest-free loan of €140 billion if it uses russian assets for this purpose. He does not see this mechanism as a violation of property rights, as claimed by opponents of transferring frozen russian assets to Ukraine.

‘The loan will only be repaid after russia compensates Ukraine for the damage it has caused during this war. I am now in favour of mobilising financial resources on a scale that will ensure Ukraine's military stability for several years,’ Friedrich Merz commented on his position.

The German Chancellor added that the funds should be used exclusively for the purchase of military equipment, and not to cover Ukraine's general budget.

According to Friedrich Merz's proposal, the loan will first be guaranteed by EU member states and then secured with funds from the next long-term EU budget in 2028. He argues that the mechanism must be agreed upon by a ‘supermajority’ of EU member states, as the voting structure does not give Hungary, which may oppose such a decision, the power to veto it.

‘Such a comprehensive programme should also help to strengthen and expand the European defence industry. This will serve both our collective security and European sovereignty,’ said Friedrich Merz.

Source: Suspilne