EU likely to have to borrow over €40bn to support Ukraine

EU likely to have to borrow over €40bn to support Ukraine
EU likely to have to borrow over €40bn to support Ukraine

The European Union will likely have to resort to new joint borrowing of over €40bn to ensure continued financial support for Ukraine. The total volume of European aid to Kyiv, including these loans, could exceed €200bn.

Welt am Sonntag reports this, citing its own calculations based on data from the European Commission.

Kyiv's request for €70bn and funding sources

Ukrainian President Volodymyr Zelensky has requested a further €70bn in financial aid for the coming year. Under current plans, the European Union is to provide €46bn of this amount.

Brussels expects to obtain part of the funds through income from frozen Russian assets. However, over the past two-plus years, they have generated around €8bn, which is insufficient to cover Ukraine's new financial needs.

The confiscation of the Russian assets themselves remains unlikely due to legal constraints. Therefore, the publication names the issuance of new joint EU bonds as one of the most likely funding options.

Growing resistance within the European Union

Meanwhile, resistance to further financing of Ukraine is growing in European countries. Bundestag member of the Left party, Diermar Barch, stated that citizens should not bear the financial burden of Russia's war against Ukraine.

«Допомога Україні допустима лише за умови, що вона не призведе до скорочення соціальних видатків у наших країнах» ("Aid to Ukraine is only acceptable on the condition that it does not lead to a reduction in social spending in our countries"), the politician emphasised.

Further financing of Ukraine is to be discussed by EU representatives and member states, including heads of state and government, next week.

Comments

No comments yet. Be the first!

Leave a comment

Links are not allowed in comments. The editors may remove comments without explanation.
Back to top ↑