Merz in Rome: Did the financial markets give up Ukraine?

It was a very bad signal for the international summit for the reconstruction of Ukraine in Rome, Ukraine Recovery Conference. And also personally for Friedrich Merz.

Shortly before the 4th meeting of this format on Thursday in Italy’s capital, it became known that the world’s largest asset investor Blackrock stopped his plans to build a consortium of international investors for the reconstruction of Ukraine. The message is as clear as it is dangerous: the financial markets no longer believe in the country’s victory.

Of all things, Blackrock, the group, for which Merz worked for several years before returning to politics. And his CEO Larry Fink had celebrated the reconstruction of Ukraine as a great opportunity at the Davos business summit in Davos in 2023. “We will create a new Ukraine,” Fink said at the time. “Ukraine will be flooded with capital. The country could become a beacon of hope for the power of capitalism.”

In Rome, Friedrich Merz tried to oppose the statements of the former employer a different signal. In his speech, he recalled the “economic miracle”, which was able to experience the destroyed Germany after the Second World War. Some recipes from back then are also applicable to Ukraine. “To rebuild a war -destroyed economy, strong partners and international support are needed. And Ukraine has strong international partners – everyone we are gathered here today.”

The damage caused by the war in Ukraine is immense. In the civilian area alone, according to a study by the Kyiv School of Economics, around 2000 schools and 7,000 apartment blocks were damaged or completely destroyed from the end of 2024. The energy supply is also difficult. Here the damage was twelve billion dollars, almost every coal and hydropower plant was affected.

The Federal Government estimates the cost of reconstruction at around 500 billion euros. Others assume even higher costs.

At his appearance in Rome, Merz emphasized how much Germany is already committed. It is the most important supporter in stabilizing and reconstruction of the Ukrainian energy supply. A total of 34 billion euros in bilateral aid has flowed to Ukraine since the beginning of the war.

But the Chancellor also made it clear that the reconstruction cannot succeed solely from state funds. “Economic growth requires freedom for the private sector to develop. This is particularly important in the case of Ukraine, because the enormous costs of reconstruction cannot be financed by public funds.”

Together with EU Commission President Ursula von der Leyen, he announces the foundation of the “European Flagship Fund”, one together with Italy, France, Poland and the European Investment Bank, which will start with 220 million euros and should mobilize half a billion euros to private capital by 2026

Miriam Kosmehl, Ukraine expert of the Bertelsmann Foundation, considers the meeting in Rome to be important despite the bad sign. “After all, the URC25 brings attention and concrete support,” she said. The repair and the protection of vital infrastructure could not wait because life has to continue in war. However, she also warns: “The conferences for reconstruction only make sense if defense support is also given a priority. Even risk -over -headed investors expect a minimum level of security. Otherwise they will remain away.”

Unusually sharp, Merz attacked another EU member in Rome on an open stage. “I urge Slovakia and its prime minister to give up the resistance and clear the way for the 18th sanction package.” The background: So far, the new sanction package against Russia planned by the EU has failed due to the resistance of the Slovak government. Even a phone call between Merz and Premier Robert Fico did not persuade the latter to give up his blockage. The Chancellor also seems to personally badly resent the Slovak counterpart.

Not only in Rome does Merz find himself in an unusual role: that of the head of state who repeatedly vehemently defends Ukraine. His own Ukraine policy was ambivalent. As much as the Ukraine in speeches supported, the implementation of the promised solidarity was sometimes slow. The delivery of patriot rocket systems announced by Merz before the election has so far failed to materialize.

That is not just to blame for the Chancellor. At the beginning of July, he had made calls to US President Donald Trump after withdrawing his promise for arms deliveries to Ukraine, including Patriot missiles. Merz offered that Germany could buy two patriot systems to the USA and send them to Ukraine. Trump seemed to be open to the offer. But now, a few days later, in Berlin there is again uncertainty as to whether the United States goes into it.

Trump remains the sphinx of international politics, unpredictable.

Merz, on the other hand, received support from a head of government who is still suspected for many to pursue another agenda: the Italian Prime Minister and right -wing populist Giorgia Meloni.

As a hostess, she made a flaming speech in Rome: “Our task is to help Ukraine, and we will do it to write this new chapter in its history, for the sake of justice and as a reminder for the future.”

Merz concluded his speech with two messages to two absent main actors. He has a message to Russian President Vladimir Putin, he said: “We won’t give up.” And also one to Donald Trump: “Stay with us.”