An anonymous EU official has spoken about the bloc’s alleged plan to issue joint debt to help finance the long-term reconstruction of Ukraine.
Speaking to Bloomberg, the anonymous source said that the plan—thought to be totalling hundreds of billions of euros—was being considered alongside loaning money from the EU budget to provide funding to Ukraine to pay benefits and salaries that may total €15bn over the next quarter.
Wrote Jorge Valero of Bloomberg: “The commission, the bloc’s executive arm, will present the plan as part of a broader package addressing the financial needs of Ukraine on May 18, according to the official. The bloc wants to set up a platform with Group of Seven countries and other nations to contribute to the effort, with the EU taking the lead.”
The cost of rebuilding Ukraine after the war has apparently been estimated at €560bn, according to Bloomberg. While the war drags on and the world’s sympathies rightly lie with Ukraine, it seems premature to be allotting money for the country’s reconstruction at this point when it still needs items such as tanks, guns, and grenades. Nations should win the war before they try to win the peace.
This is despite the US passing a bill this week that will send a $40bn aid package to the country and the EU applying supportive measures that will buttress the budget to help the Ukraine military to €1.5bn.
There is also a political cost to the EU opting to directly support Ukraine in its running costs, considering that the nation is not yet part of the trading bloc. But given that the bloc has not been able to agree on proposing to ban fuel imports from Russia over Europe’s first land war in nearly 25 years, perhaps everyone should stop getting ahead of themselves.