EU asks its members for $55 bln to support war-torn Ukraine

Brussels on Tuesday asked EU member states to provide $55 billion (€50 billion) more to support Ukraine over the next four years, as part of a boost to the bloc’s budget.

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“This financial reserve will allow us really to calibrate our financial support according to the evolution of the situation on the ground,” European Commission chief Ursula von der Leyen said.

The proposal from the European Commission, the EU’s executive arm, is aimed at helping prop up Kyiv’s finances and covering immediate reconstruction costs caused by Russia’s war.

The money, a combination of grants, loans, is part of the review to plug gaps in the EU’s budget for the period 2024-2027 left by the fallout of Covid pandemic and the conflict.

It represents less each year than the $19 billion (€18 billion) the EU has committed towards Ukraine government expenditures in 2023.

Overall, the EU has already committed $33 billion (€30 billion) from its budget to support the country since Russia’s all-out invasion in February 2022.

The money for Ukraine is expected to be dependent on reforms to strengthen its judiciary and tackle corruption that are intended to spur Kyiv along the path to joining the EU.

The proposal comes ahead of a major donor conference in London this week on paying for Ukraine’s reconstruction.

The World Bank in March estimated Ukraine’s long-term reconstruction costs at over $414 billion (€380 billion).

As part of its budget review, Brussels is also asking for $16 billion (€15 billion) more to help deal with immigration and $11 billion (€10 billion) to subsidize key industries.

But the demands for a fresh injection of money will face some serious headwinds from EU countries still grappling with the consequences of the pandemic and war.

All 27 member countries have to agree to increasing the budget.

“We are fully aware of the fact that member states were also hit by the crises and after years of large public support to their economies it is now time for them for consolidating,” von der Leyen said.

“We come today with a very targeted and limited proposal for the absolute must.”

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