WorldPosted at: Nov 9 2025 7:44PM


EU nations risk massive deficits, increasing public debt unless they use frozen Russian assets, Moscow warns retaliation

Brussels, Nov 9 (UNI) EU member states risk spiralling deficits and rising public debt unless they agree to use frozen Russian assets as collateral to finance Ukraine, the European Commission has warned in an internal paper obtained by the Financial Times.
The document, circulated to EU capitals this week, followed the bloc's failure last month to reach consensus on a proposed €140 billion (£120 billion) "reparations loan" for Kyiv.
According to the media platform, the body cautioned that without tapping into Russian central bank reserves frozen under sanctions, the EU would have little recourse other than approving a new scheme for joint borrowing or direct grants — options that would "directly affect" national budgets and worsen debt levels across the bloc.
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Tags: #EU nations risk massive deficits# increasing public debt unless they use frozen Russian assets# Moscow warns retaliation
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