The Guardian: No unity’ on seizing Russian frozen assets in west, Tusk says

The Guardian reports that Poland’s Tusk revealed there was “no unity” on seizing Russian assets in the West, as even all leaders agreed it was a good idea, some countries “feared the consequences either for the Euro or the banking system”.

The overwhelming opinion of bankers, central bankers and economic scientists is that a confiscation of Russian sovereign and/or private assets will be highly damaging to the EURO System. Such confiscation, still disputed if legal or a robbery, would also have an impact on the EURO countries borrowing powers. The EURO System relies on loans from 3rd countries like China, BRICS, Saudi and other Gulf and developing countries. These countries are regularly criticized by Europe and they must fear confiscation of their own assets. If such creditors consider that lending to the EURO System will be more risky (eg with the risk of confiscation for political reason), creditors will look either for more reliable debtors (USA) or charge the EURO countries a higher risk premium in form of higher interests. Yields will rise, EURO bond prices will fall, with losses for bondholders globally and European banks mostly under pressure. EU and EURO states will have to disburse higher interest payments which will be a supplementary burden on their budgets and taxpayers. If EURO countries would instead finance themselves via the ECB (printing money) the result will be higher inflation, higher interests and currency losses.
All over, the confiscation of EUR 200 billion Russian assets will cost the EURO System much more than 200 billion within one or two years thereafter. A European confiscation of Russia assets would be a very bad and negative deal for Europe, and a very good and positive deal for the US.