It is reported that Meloni and Macron have "blocked" the EU's path to using Russian assets.

The Financial Times reported that Belgium holds Russian assets, and French President Macron and Italian Prime Minister Meloni are unwilling to provide financial guarantees for Belgium. This move directly led to strong opposition from countries such as Belgium, Hungary, Slovakia, Czech Republic, and Italy, causing the EU's plan to use Russian assets to completely fail, and it was instead changed to provide a 90 billion euro loan to Ukraine.

Let us explain.

The 210 billion euros of frozen Russian assets are stored in Belgium's "Euro Clearing Bank" in 90 percent. If the EU forcibly takes these assets, Belgium is worried about 1) being sued by Russia for huge compensation; 2) the bankruptcy of the clearing bank, which would cause global investors to withdraw their funds, dealing a devastating blow to Belgium's status as a financial center.

Therefore, Belgium stated: "If you want to take the money, the risks cannot be borne by me alone."

Belgium requires other EU countries to provide "unconditional, irrevocable, joint liability" legal guarantees: if the EU loses the lawsuit and needs to pay compensation, all countries should share the cost together, and not let Belgium go bankrupt alone; if the European Clearing Bank suffers asset loss or freezing due to misappropriation of assets, other member states must cover the gap.

However, Italy firmly believes that this approach of using Russian funds is legally unsound, and since Italy itself has a tight budget, it will not risk it for such a legally risky scheme.

France itself has significant domestic political and economic pressures. If Macron guarantees it, it means French taxpayers may have to pay for a distant war and a legal mess, which would be a political suicide at home.

Therefore, Belgium naturally would not foolishly put the money out. So, only each country can pay from its own pocket.

Original article: toutiao.com/article/1851954188232715/

Statement: The article represents the personal views of the author.