EU summit meeting

Chancellor skeptical about distribution of Russian money

Karl Nehammer (ÖVP) in Brussels

(Bild: AFP)

The EU summit is once again dominated by the war in Ukraine. The heads of government are currently arguing about what to do with the frozen Russian assets. For Austria, another topic is at the top of the agenda.

Even before the EU summit in Brussels, German Chancellor Olaf Scholz spoke out in favor of using the proceeds from frozen Russian assets to buy weapons and ammunition for the defense of Ukraine.

Federal Chancellor Karl Nehammer (ÖVP) was skeptical about this. He emphasized that it must be ensured for the neutrals that this is not the case. He considered the original proposal to use the funds for reconstruction to be sensible.

Showing strength towards Putin
Scholz emphasized that continued support for Ukraine was important and that all European states had to make a recognizable contribution. Ammunition had to be purchased worldwide "because it has to be done quickly", Scholz said, referring to a corresponding procurement initiative by the Czech Republic. He also hoped that the proceeds from frozen Russian assets, to which no one was entitled, would first be used to purchase weapons and ammunition.

The summit must send a clear signal to Russian ruler Vladimir Putin, he said. "He has miscalculated if he believes that we are not supporting Ukraine as necessary," said Scholz.

Estonian head of government Kaja Kallas suggested that the EU summit should agree on a common target for military aid for Ukraine. If each country were to make at least 0.25 percent of its gross domestic product available for military aid, the Ukrainians could outstrip Russia, she said. Kallas also backed the proposal to use the proceeds of frozen Russian central bank funds for arms purchases for Ukraine. According to figures from the Kiel Institute for the World Economy, Estonia currently spends 3.6 percent of its GDP on supporting Ukraine, more than any other country in the world.

Austria wants clarity for Bosnia-Herzegovina
The EU summit began on Thursday afternoon with a working lunch with UN Secretary-General António Guterres. On Thursday and Friday in Brussels, the EU leaders will discuss the response to the situation in Ukraine and the Middle East. The key question for Austria is whether the heads of state and government will give the green light for EU accession negotiations with Bosnia-Herzegovina.

On Wednesday, EU High Representative for Foreign Affairs Josep Borrell proposed that the EU should use 90 percent of the interest profits from frozen Russian assets to purchase weapons for Ukraine via the European Peace Facility. Ten percent should flow into strengthening the Ukrainian defense industry.

Much to do, little time
Ukraine should also benefit from an EU defense strategy that proposes more joint military purchases. Greece's head of government Kyriakos Mitsotakis has proposed issuing EU bonds for the defense of the European Union. If Europe wants to stay protected, it needs to think about new ways to finance its defense spending, Mitsotakis said on Greek television (ERT) from Brussels on Thursday. "I'm talking here about issuing euro bonds that should be used exclusively for defense," Mitsotakis said.

In recent weeks, Austria has increasingly campaigned for the go-ahead for accession talks with Bosnia, for example in an open letter with six other EU states - including Italy and Croatia. However, some member states still need to be convinced to say yes.