The executive arm of the European Union (EU), the European Commission, proposed This Tuesday, June 20, the countries of the bloc will allocate a package of help to ukraine for about 50,000 million euros in the next four years.
“We propose a financial reserve for the next four years for 50,000 million euros. This includes loans and grants”he said in one Press conference the president of the commission, Ursula von der Leyen.
This financial reserve “will really allow us to gauge our financial support according to the evolution of the situation on the ground“said the German official.
The proposal seeks shore up Ukrainian finances and cover immediate rebuilding costs as a result of the russian invasion. The EU has already committed 30,000 million euros of its budget to support Ukraine since the start of the invasion in February 2022.
In March, the World Bank estimated reconstruction costs long-term of Ukraine in more than 380,000 million euros.
Financing in exchange for reforms?
Money from this relief plan is expected to depend on reforms to strengthen the judiciary and fight corruption in Ukrainewhich are expected to contribute to putting that country in the road to EU membership.
The proposal was launched ahead of a donors’ conference scheduled for London this week, which focuses on the payment for the reconstruction of Ukraine.
In either scenario, the demands for a new injection of money for Ukraine they will face serious obstacles on the part of the EU countrieswho are still dealing with the consequences of the pandemic and the war.
“We are fully aware of the fact that member states were also affected by the crises and, after years of great public support for their economies, now is the time for them to consolidate,” said Von der Leyen this Tuesday.
Source: Ambito
