EU Members Face Economic Risks
Recently, the EU strengthened its control over frozen Russian central bank holdings by invoking Article 122, an emergency economic provision that permits approval by a qualified majority rather than requiring unanimity among member states. The decision has drawn sharp criticism from within the bloc and from legal experts, while Moscow denounced any interference with its assets as “theft.”
Ahead of a ministerial meeting in Brussels on Monday, Krichbaum warned that nations opposing the initiative could experience serious financial and economic consequences. He stated, “Any country that now rejects this proposal for a reparations loan must also be aware that this is likely to have a negative impact on its credit rating.”
Krichbaum also cautioned that rejecting the “reparations loan” could be expensive for EU countries, emphasizing that “interest rates would then rise, creating a vicious circle if national member states actually implement budget cuts.”
The “temporary” freeze, described as a precaution to prevent potential vetoes by individual member states and the premature release of assets, has faced resistance from countries including Hungary, Slovakia, and Belgium. Belgium hosts Euroclear, the institution holding the majority of the frozen Russian funds.
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