View: Spotlight on EU collective defence and financing Ukraine war effort

The European Union faces a critical decision on how to finance Ukraine’s war effort, divided over whether to use frozen Russian assets or jointly borrow funds through 2027.

Political analyst Enrique Cocero explains the stakes, the EU’s internal divisions, and the potential role of the U.S.

As EU leaders meet in Brussels, the bloc must decide how to sustain Ukraine financially during the ongoing war.

Speaking to AnewZ, political analyst Enrique Cocero said, “The main issue here is not funding Ukraine as much as Europe assuming the conscience of self-defence.”

He emphasised that the conflict is no longer just a Russia–Ukraine war, but a direct threat to Europe.

On the table are two options: Plan A, using immobilised Russian assets as reparations, and Plan B, joint EU borrowing to support Kyiv.

Cocero noted that while France supports using Russian assets, countries like Italy, Bulgaria, Malta, Czechia, and Belgium have resisted, creating political complications.

Regarding joint borrowing, he explained, “Europe can give Ukraine 90 billion euros as a loan, but Russia does not want Ukraine to recover too quickly, which could affect repayment.”

Cocero suggested that the most likely outcome is a mix of both plans, allowing loans to Ukraine while using Russian assets as a cautionary measure.

He also highlighted the U.S. role, pointing out that Washington provides intelligence support but is prioritising the Pacific over Europe.

“The United States is collaborating, but not putting boots on the field,” he said. He added that Russia’s reaction will determine how far the U.S. is willing to engage diplomatically.

• Russia’s frozen assets: How Europe plans to fund Ukraine
• Europe and Ukraine launch International Claims Commission to seek reparations from Russia

On potential delays, Cocero warned that EU member states could slow decisions: “Italy, Bulgaria, Belgium and others can take time, which is challenging given Ukraine’s critical situation.”

The analyst stressed the need for agile EU decision-making, noting that slow responses could mean missed opportunities to influence the war’s outcome.

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