thanks Martin

Read my latest @brusselstimes.com column

www.brusselstimes.com/eu-affairs/1...

Providing €80bn a year would entail borrowing 0.4% of EU GDP a year, a total of only 2% of GDP over 5 years.

To bypass a Hungarian veto, a coalition of willing governments could, if necessary, establish a separate entity for that purpose, as they did during the eurozone crisis

If all else fails, the EU should simply borrow the money to fund Ukraine. That's what the Commission is proposing as a stopgap, and it could also be a viable longer-term solution.

There's a compelling case for using Russia’s frozen assets. It would be morally right, legally justified and politically expedient.

But Belgium, which hosts most of the assets, objects, as does Hungary’s pro-Putin PM Viktor Orban, and the Commission’s legal workaround is a stretch.

All the focus is on the European Commission’s latest plan to mobilise €210 billion of frozen Russian assets to fund a “reparations loan” repayable only if Russia pays Ukraine compensation for its aggression. The UK, Canada etc are also willing to chip in assets they have frozen.

With #Ukraine set to run out of cash early next year, and Trump no longer willing to help, it's up to Europe to provide the sustained support that Ukraine needs to defend its freedom and the rest of the continent’s security.

My latest column for @BrusselsTimes analyses the EU's 4 big weaknesses and sets out what it needs to do to become a superpower.

www.brusselstimes.com/column/18342...

www.gov.uk/government/s...

Agreed. He often makes me question my views

Done right, eg @bruegel.bsky.social‬ EDM proposal, this could also help streamline military procurement, better integrate Europe’s fighting forces and provide a much-needed lift to Europe’s struggling economies.

Read my latest Substack essay for more.

philippelegrain.substack.com/p/europe-nee...

The best way forward is for a coalition of willing governments, both EU and non-EU (eg UK), to borrow collectively.

As investors seek alternatives to dollar assets, there's huge appetite for safe, euro-denominated bonds...

But three big constraints

1. fiscal rules (now OK in the #EU, not in the #UK)

2. financial borrowing power (fine for #Germany, less so for #France and UK)

3. political feasibility (OK for Germany & France, less so for UK; #Hungary veto at EU level)..

Three immediate priorities:

1. defend #Ukraine

2. deter #Putin

3. reduce dependence on #Trump

While this will eventually require tax rises and/or spending cuts, the best way to fund a big emergency boost to defence spending is by borrowing more for a few years...