As European nations hesitate to assume the financial risks associated with Russia’s frozen assets, two Norwegian economists propose a compelling alternative: allow Norway to shoulder the burden.
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Ukraine stands at a financial crossroads, desperately needing funds as it grapples with ongoing challenges. During a summit slated for Thursday, EU leaders will deliberate on a pivotal solution: leveraging approximately €200 billion in Russian assets frozen in Belgium to extend a loan to Ukraine. Such a move could provide essential support for the beleaguered nation over the next two years.
Yet this proposal does not come without its controversies. Belgium has stipulated that other EU nations must back the loan, ensuring it does not bear the financial risk alone—a stance that is far from popular amid growing budgetary concerns in countries like France. The potential repercussions for national creditworthiness loom large, further complicating the political landscape surrounding this much-needed assistance.
