EU's Ukraine Financing Agreement Draws Criticism
On Friday, former German diplomat Wolfgang Ischinger expressed concerns about the European Union's recent agreement to support Ukraine financially. The deal, finalized early Friday morning, provides Ukraine with essential funding but comes at a significant cost to the EU's reputation, according to Ischinger.
"Namely, the price of credibility, determination and the European Union's ability to act as a credible, internationally respected player. That has fallen by the wayside a little here," said Ischinger, who previously led the Munich Security Conference for many years.
He noted that while the EU achieved its objective of aiding Ukraine, the compromise involved avoiding direct use of frozen Russian assets, which he believes undermines the bloc's standing. "We continue to give the impression that we are driven and then looking for alternative solutions," Ischinger added in his interview with Deutschlandfunk radio.
After prolonged negotiations, EU member states reached a consensus to fund Ukraine over the next two years. The arrangement includes a €90 billion ($105.5 billion) interest-free loan for Ukraine. Repayment of this loan is planned to come from frozen Russian assets in the EU if Russia does not provide compensation for war damages.
Ischinger, who stepped down in 2022, is currently serving as interim chairman of the Munich Security Conference until Jens Stoltenberg, Norway's finance minister, assumes the role. The conflict between Ukraine and Russia has been ongoing since February 2022.
