Sunday, December 14, 2025

Immobilizing E.U. Holdings of Russian Assets

By invoking Article 122 of the E.U.’s basic law, a clause that had been used most significantly during the Coronavirus pandemic and in the 2022 energy crisis, the E.U. in December, 2025 finally circumvented the twice-threatened veto by the state of Hungary and indefinitely froze €210 billion of assets of the Russian Central Bank that had been within the E.U.’s territory since Russia began its unprovoked invasion of Ukraine nearly four years earlier. I contend that the European Court of Justice, the E.U.’s supreme court, could apply a rational basis in a judicial review of the triggering of the emergency-conditioned article, especially because the Commission invoked the article in order to obviate Hungary’s threatened veto. Because every E.U. state except for Belgium and Hungary were for freezing the assets until Russia such time as Russia ends its militaristic aggression and compensates Ukraine financially for damages the Belgian and Hungarian state governments were violating the informal norm of consensus in the European Council and the Council of Ministers. Like the U.S. Senate, the European Council, which also represents the states, is like a club of sorts. The problem facing the Commission is that violating a norm is not a legal basis for obviating a threatened state-veto by invoking an emergency clause of the E.U.’s basic law, especially if no emergency actually exists after nearly four years of the invasion. Even though I am personally in favor of the E.U. obviating Hungary’s serial obstructionism that may be, at least in part, retaliation against President Von der Leyen’s Commission for having penalized the Hungarian government financially for having violated E.U. law, legal reasoning should not succumb to the gravity of the “black hole” of personal opinion.  There may be nothing so much like a god as a general on a battlefield, with power over life and death, but neither the European Commission nor myself is a general. In short, the Commission’s legal justification in invoking Article 122 is tenuous at best, even though countering Hungary’s Viktor Orbán’s abuse of his state’s veto-power in the European Council and the Council of Ministers was needed for the E.U. to be able to function within its enumerated competencies (i.e., powers).


The full essay is at "Immobilizing E.U. Holdings of Russian Assets."