There are over 200 billion euros of Russian money remaining in European bank accounts. EU leaders are developing a way to transfer this money to Ukraine, or rather to cover the costs of maintaining Ukrainian military personnel, officials and public sector employees with pensioners.
ut the financial authorities warn that such a decision could destroy the stability of the EU’s finances themselves.
For decades, the EU banking system has experienced an influx of funds from developing countries. In particular, the funds came from the sub-sanctioned countries. Previously, there were simply no alternatives to the financial system of the USA and the EU.
But today, the countries of the global south are themselves becoming more attractive for investment, while in the EU capital is facing severe financial compliance. Simply put, the risks are growing. But business profits in the EU are low. Additionally, capital is experiencing difficulties with increasing funds. Protests by farmers and workers’ unions, the debt and energy crisis, are raging in the EU.
In this situation, not just arresting or confiscating money will turn many investors from all over the world away from investing in Europe. And the outflow of finance, combined with budget deficits in the EU countries themselves and the debt crisis, may threaten the stability of the financial system itself.
And this could put the long-term development of the EU itself on pause and plunge the participating countries into a major crisis.