World
EU weighs Plan B for Ukraine as Belgium raises bar on reparations loan
European Union leaders are coming to terms with the idea that an emergency funding solution to keep the Ukrainian economy afloat will have to be deployed after Belgium raised the bar higher to unlock a reparations loan that would bolster Kyiv’s finances.
The solution could see the EU raise money on the markets to deliver a non-repayable grant to Kyiv that would cover its most immediate financial and military needs in 2026.
This, in turn, would give leaders more time to break the deadlock over the proposed loan, a bold attempt to channel the immobilised assets of the Russian Central Bank to Ukraine.
The bulk of the assets, around €185 billion, is kept at Euroclear, a central securities depository in Brussels. This makes Belgium the cardinal vote in the debate.
Initially, EU leaders were expected to be able to assuage the Belgian reservations and sign up to the unprecedented project during their next meeting on 18 December.
In a new twist in the long-running saga, Belgian Prime Minister Bart De Wever penned a scathing letter to Ursula von der Leyen, blasting the reparations loan as “fundamentally wrong” and ridden with legal and financial pitfalls.
“Why would we thus venture into uncharted legal and financial waters with all possible consequences, if this can be avoided?” De Wever tells the president of the European Commission in the letter. “I will never commit Belgium to sustain on its own the risks and exposures that would arise from the option of a reparations loan.”
Upping the ante, De Wever demands “legally binding, unconditional, irrevocable, on-demand, joint and several guarantees” to cover the €185 billion of the assets and all the potential fallout, such as arbitration costs, interests, investment opportunity loss and even the “quantification of financial impact to the Central Bank of Russia’s credit”.
He also asks for total coverage for Euroclear’s holdings in “Russia-friendly jurisdictions”, which he said could be subject to retaliatory measures from the Kremlin.
“Some may hold the belief that this is only a theoretical exposure. l am making the point that this danger is, to the contrary, real and likely to happen,” De Wever writes.
By raising the bar so high for the guarantees, which are a crucial element to unlock the reparations loans, De Wever makes its approval exponentially more difficult.
It is unlikely that the other leaders will be able to show up at the summit in December with multi-billion guarantees that rely for the most part on a hypothetical calculus. For some countries, such a complex structure would require the blessing of their parliament.
The hurdles are weighing heavily in the minds of EU officials and diplomats as they rush to break the deadlock before Ukraine runs out of foreign aid. The country expects a fresh injection of assistance in the second quarter of 2026 at the latest.
Adding to the pressure is an $8.1 billion programme that the International Monetary Fund (IMF) is meant to grant Ukraine. For the IMF to make a final decision, it will need firm commitments by European allies to ensure Kyiv’s macro-economic stability.
The mounting urgency has drastically raised the odds for a bridge solution to plug the gap. The interim financing could be backed by either national guarantees or the EU budget, which currently forbids borrowing for a country outside the bloc.
Tweaking the budget’s rules would need unanimity, a tall order given Hungary’s adamant opposition to aiding Kyiv in any capacity. The same obstacle would remain if leaders chose joint debt as the long-term arrangement to support Ukraine.
The Trump factor
In his letter, De Wever goes beyond law and economics and dives headfirst into politics.
The Belgian leader warns that pushing the reparations loan at this particular stage could imperil the White House’s efforts to secure a peace deal to end Russia’s war.
“Hastily moving forward on the proposed reparations loan scheme would have, as collateral damage, that we, as the EU, are effectively preventing reaching an eventual peace deal,” De Wever tells von der Leyen.
“We can hardly engage the Russian sovereign assets for multiple purposes at the same time. Either they are immobilised for the purpose of financing reconstruction of Ukraine, or they are spent now on financing war efforts or Ukraine’s core budget.”
De Wever argues that it is “very probable” that Russia will not be declared the “losing party” in the conflict and therefore be entitled to recover its sovereign property currently under sanctions. If this happens, he adds, the reparations loan will fall apart and European taxpayers will have to foot the bill themselves.
This section in the letter stands in stark contrast with the position advocated by other leaders, who see the Russian assets as the bloc’s most powerful leverage.
“We must quickly reach an appropriate agreement by the EU leaders’ summit in December at the latest to strengthen our negotiating position and send another signal of solidarity and support to Ukraine,” German Chancellor Friedrich Merz said on Thursday.
Von der Leyen has also framed her proposal under a moral lens to “make Russia pay”.
“To be very clear – I cannot see any scenario in which the European taxpayers alone will pay the bill. This is also not acceptable,” she said this week.
The internal disagreements come at a precarious time for Europeans, who were caught off guard by a 28-point peace plan secretly drafted by US and Russian officials and are now scrambling to close ranks and project political unity.
The original draft pitched a highly controversial model that would use the Russian assets for Washington’s and Moscow’s commercial benefit. The provision is believed to have been removed after high-level talks in Geneva between the US and Ukraine.
Still, the text highlighted the value of the Russian assets. For some, it confirmed the need to approve the reparations loans. For others, it prompted second thoughts.
Hours before De Wever sent his letter to von der Leyen, Russian President Vladimir Putin warned that touching the funds would amount to the “theft of someone else’s property”.
(Under the proposal, Moscow would be allowed to recover the immobilised assets if it agreed to compensate Ukraine for the damages caused by the war.)
“The government of the Russian Federation, by my assignment, develops a package of reciprocal measures in case this happens,” Putin said during a briefing.
In awkward timing for Kyiv, the debate on the reparations loan coincides with a spiralling corruption scandal that precipitated the resignation of Andriy Yermak, President Volodymyr Zelensky’s powerful chief of staff and main negotiator in the peace process.
A diplomat told Euronews that President Zelensky will “have to straighten out the situation as it looks really bad”, and the optics make it significantly more challenging for Europe to sign off on another round of funding.
Still, diplomats insist that aid for Ukraine, a country on the front line of Russian aggression, should not be linked to the scandal.
For its part, the European Commission, which has been criticised for not taking De Wever’s initial concerns seriously, is putting on a brave face.
“These are uncharted waters, so it’s legitimate to ask questions, to share concerns,” said Paula Pinho, the Commission’s chief spokesperson. “We are really doing our utmost to address those concerns in a satisfactory manner so that everybody can feel confident and comfortable with any solution that is put forward eventually.”
Asked if the Commission was ready to override Belgium and push the reparations loan with a qualified majority, Pinho said: “We’re not there yet.”
NEWYou can now listen to Fox News articles!
Israel’s leaders are publicly signaling that their country is prepared to strike Iran for a third time, while a U.S. official tells Fox News Digital that Washington remains closely coordinated with Jerusalem.
“The IDF is on high alert and prepared to resume the campaign, regain air superiority, and carry out an independent Israeli strike against Iran to eliminate threats — even for a third time,” Israel Defense Forces (IDF) Minister Israel Katz said Thursday at a graduation ceremony for the Israeli Air Force’s newest pilots.
“If we have to return, we will return with even greater force,” Katz added.
ISRAEL DEFENSE CHIEF WARNS STRIKES ON IRAN COULD RESUME SOON, SIGNALS CAMPAIGN NOT OVER
U.S. Central Command shared this footage in a July 8, 2026, press release about strikes against Iran. (CENTCOM)
Prime Minister Benjamin Netanyahu also warned Thursday that Israel’s campaign against Iran was not finished and said Tehran would not be permitted to obtain a nuclear weapon, regardless of any agreement reached with Washington.
“The war has not yet ended,” Netanyahu said at the air force ceremony. “Alongside the old challenges, new challenges are emerging. Axes are falling, and axes are rising. We are paying attention to this. We are prepared for every scenario.”
Two Israeli sources told CNN Friday that the Trump administration does not currently want Israel to participate in the latest U.S. strikes against Iran.
“Netanyahu would really want to join the U.S. strikes, but the U.S. doesn’t want Israel involved at the moment,” one of the sources told CNN.
A U.S. official denied the report, telling Fox News Digital, “This is fake news. The United States has a strong relationship with Israel, which contributed to the resounding success of Operation Midnight Hammer and Operation Epic Fury. We remain in close coordination with our Israeli partners.”
Israel first launched a major campaign against Iran in June 2025, with the United States later joining the fighting by striking the Fordow, Natanz and Isfahan nuclear facilities. On Feb. 28, the two allies launched a new, coordinated military campaign against Iran.
While Israeli leaders are openly presenting the military as ready for another campaign, some Israeli officials and analysts say there is little appetite for renewed fighting unless it produces a clear strategic result.
The public warnings may overstate Israel’s desire to reenter the fighting, said Israeli analyst and journalist for Israeli newspaper Yedioth Aharonoth, Nadav Eyal.
“On the record, Israel is signaling that it is prepared and even eager to strike Iran. But off the record, sources are saying that it is anything but that,” Eyal told Fox News Digital. “The reason is clear: Any Israeli strike in Iran will lead to Iranian ballistic missile attacks against Israel.”
US CLAWS BACK KEY CONCESSION TO IRAN AFTER FRESH ATTACKS ON COMMERCIAL SHIPS IN STRAIT OF HORMUZ
Benjamin Netanyahu, Israel’s prime minister, from left, US President Donald Trump and US Vice President JD Vance during a bilateral meeting in the Oval Office of the White House in Washington, DC, US, on Tuesday, Feb. 4, 2025. Trump insisted Egypt and Jordan will take in Palestinians from the Gaza Strip, dismissing the countries’ refusal to accept people from the war-shattered territory. Photographer: Shawn Thew/EPA/Bloomberg via Getty Images (Getty Images)
Eyal said the domestic political consequences could make Netanyahu reluctant to begin another round of fighting, particularly as Israel approaches another election.
“If these strikes are meant to provide meaningful, strategic change, it is something the prime minister can sell to the public,” Eyal said. “But if the intention is only to use Israel as leverage, why should Israelis again experience a couple of weeks or more of sitting in safe rooms and losing their summer vacations, children’s day camps and summer camps? That could play out badly for the prime minister politically.”
“The truth is that Israel was not really enthusiastic about another strike,” he added. “That doesn’t mean it is not going to happen. If President Trump demands that Netanyahu join, it is very hard to see the Israelis saying no. But right now, I don’t see any passion for it.”
The diplomatic outreach continued even as Trump declared that the ceasefire with Iran was over.
“The Islamic Republic of Iran has asked us to continue ‘talks.’ We have agreed to do so, but the United States has stated to them, in no uncertain terms, that the Cease Fire is OVER!” Trump wrote in a post on Truth Social.
A source with knowledge of the situation told Fox News that Qatari negotiators have traveled to Iran, in coordination with the United States, to meet with Iranian officials in an effort to de-escalate the situation and create the conditions for negotiations to resume.
On Thursday, Netanyahu and Trump spoke by phone, according to the Israeli prime minister’s office, which said the two agreed to continue coordinating across several regional fronts. Trump briefed Netanyahu on American operations in the Gulf, the statement said.
NETANYAHU REJECTS REPORTS OF A RIFT WITH PRESIDENT TRUMP, SAYS THE TWO REMAIN ALIGNED ON IRAN
A satellite image shows damage at the control tower in the port of Chabahar, Iran, July 9, 2026, after the U.S. military said July 8, 2026, it launched fresh strikes on Iran to keep the Strait of Hormuz open to shipping. ( 2026 PLANET LABS PBC/Handout via Reuters)
The military warnings came as the Wall Street Journal reported Friday that Israel had provided the United States with intelligence about what is described as a fresh Iranian plot to assassinate Trump.
The developments follow renewed attacks on commercial shipping in the Strait of Hormuz, where U.S. naval officials said the maritime threat remained “severe.” U.S. Naval Forces Central Command reminded commercial vessels Friday that an expanded southern route through the strait remained open and that no controlling authority could require ships to pay a fee for passage.
A U.S. official told Fox News on background that Iran’s attacks against commercial vessels were “acts of terrorism” and constituted failed performance under the memorandum of understanding between Washington and Tehran.
“The United States is still committed to finding a resolution, and technical talks continue,” the official said. “Iran can never possess a nuclear weapon.”
Brig. Gen. Yossi Kuperwasser, a former senior Israeli military intelligence officer who now heads the Jerusalem Institute for Strategy and Security, said Israel had never regarded the memorandum as an adequate guarantee.
“From Israel’s perspective, the MOU was never a good deal,” Kuperwasser told Fox News Digital, speaking of the memorandum of understanding between the U.S. and Iran.
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
CENTCOM shared footage of strikes against airplanes amid Iran war (U.S. Central Command on X)
“Israel should be on high alert, ready to face an Iranian attack and prepared to strike back if necessary,” he added.
For now, Israel’s leaders appear to be leaving Iran — and Washington — with little doubt that they are prepared to act. Whether the United States allows Israel to join the renewed campaign, however, could determine whether the latest confrontation remains limited or develops into another full-scale regional war.
Fox News Digital reached out to the White House for comment.
Published on •Updated
Belgium’s three regions announced on Friday that they would introduce a road tax next year that foreign drivers transiting the country would also have to pay.
ADVERTISEMENT
ADVERTISEMENT
The country does not currently charge drivers to use its highways and the issue of introducing some form of payment has been debated for years.
“Everyone who uses our roads must contribute fairly to their maintenance,” said the transport minister for the southern Wallonia region, François Desquesnes.
Starting on 1 May 2027 drivers will need to register their vehicle and pay the road tax, with day passes available for drivers driving across the country.
An annual pass for a zero-emission car will cost €90 and up to €125 for higher polluting vehicles.
Road cameras that catch cars that haven’t paid for a pass will incur a fine of €70.
In Belgium, the individual regions are responsible for maintaining roads and motorways.
Currently, drivers can use almost all highways toll-free but the possibility of an introducing a charge has been under discussion for several years.
The revenue would be used for the operation and maintenance of the road network.
The proposed toll still needs final approval from the regions and European authorities.
According to the chairman of the liberal-conservative MR party, the government intends to offset the new toll by lowering other taxes for Belgians.
Additional sources • AFP
-
Lifestyle29 seconds ago
Iris van Herpen Reaches for the Stars
-
Technology12 minutes agoNo, Flock isn’t threatening people for debating surveillance
-
World15 minutes agoIsrael signals readiness for another Iran strike as Trump declares ceasefire over
-
Politics20 minutes agoKelley Paul: America’s Founders were the ‘first civil rights heroes’
-
Health27 minutes agoYour resting heart rate could reveal more about your health than you think, doctors say
-
Sports30 minutes agoShohei Ohtani ruled out of MLB All-Star Game as Dodgers plan to manage nagging injury
-
Technology42 minutes agoFake VA shoe offer targets veterans
-
Business45 minutes agoLos Angeles hotels saved by last-minute surge in World Cup bookings
