The European Union announces the establishment of a “Solidarity Fund for Ukraine” | war in Ukraine

UE va développer le Fonds de solidarité pour l’Ukraine pour le soutien immédiat et la reconstruction d’une Ukraine démocratique”,”text”:”L’UE va développer le Fonds de solidarité pour l’Ukraine pour le soutien immédiat et la reconstruction d’une Ukraine démocratique”}}”>L’European Union will set up the Solidarity Fund for Ukraine for immediate support and reconstruction of a democratic UkraineHe announced this on Twitter after a video conference with the heads of state and government of several European countries as well as with American President Joe Biden, Canadian Prime Minister Justin Trudeau and the Secretary GeneralOrganization of the North Atlantic Treatyespecially Jens Stoltenberg.

Corresponding Bloomberg, most of the initial aid would be used to rebuild infrastructure and public services. The European Commission is also reportedly considering extending guarantees to help companies.

The European Commission told European diplomats that the initiative is aimed at the long-term needs of the country, according to the sources. Without putting a precise figure on the amount needed to rebuild Ukraine, the aid needed as the war continues to wreak havoc would be estimated at hundreds of billions of euros over decades.

A few days ago, an economic advisor to Ukrainian President Volodymyr Zekensky estimated that the country would need 1.260 billion Canadian dollars to recoup losses caused by the Russian invasion and bombing.

One of President Zekensky’s staunchest allies has urged European countries to act. Quoted on Twitter by the Polish delegation to theEuropean Unionthe Prime Minister of that country, Mateusz Morawiecki, asked the European Commission start immediately this fund and mobilize new European funds.

The project had already been raised during a summit meeting last monthEuropean Union dedicated to the war in Ukraine. At the end of the meeting, the European Council had agreed on this in a press release Establishment of a solidary trust fund for the reconstruction of a democratic Ukraineas soon as Russian aggression stops. The council invited its international partners participate and asked that the preparations begin immediately.

Earlier this month, during a visit to Kyiv, the President of the European Parliament, Roberta Metsola, promised that theEuropean Union would help Ukraine in this rebuild [ses] cities and [ses] Villages.

Corresponding Bloombergthe relief plan would be similar to the recovery fund set up for Member States in the wake of COVID-19.

Analysts from the Center for Economic Policy Research for their part, compared Ukraine’s future reconstruction efforts to other plans of the past, such as the Marshall Plan to finance the reconstruction of Europe after World War II.

The European Commission has warned the European ambassadors about thisEuropean Union would take much of the account into account, stating that it is therefore not a multilateral instrument Bloomberg.

The draft EU initiative does not yet predict how much of the aid will come from grants and loans.

The Commission would first undertake an in-depth assessment of funding needs in cooperation with the World Bank.

She estimated last week that Ukraine’s GDP would fall by 45% this year.

The World Bank and the IMF at the bedside of Ukraine

The World Bank will also host a roundtable on the next phase of economic assistance to Ukraine on Thursday in Washington.

Notably, the meeting will bring together its President David Malpass, as well as Managing Director of the International Monetary Fund Kristalina Georgieva, as well as Ukrainian officials including Prime Minister Denys Chmygal, Finance Minister Serhiy Marchenko and Central Bank Governor Kyrylo Shevchenko.

The debt burden of Ukraine must be significantly reducedargued Mr Malpass on Tuesday.

Former Governor of the National Bank of Ukraine Valeria Gontareva recently spoke to an economic think tank in Washington, quoted by the British daily tea telegramalso insisted on the catastrophic loss What economic damage did Russian troops inflict on Ukraine? not only for today, but also for the years to come.

export opportunities are completely destroyed and The big ports are busy, she explained. She estimates the current bill at around 710 billion Canadian dollars, 340 billion of which is for infrastructure alone.

With the war deadlocked, costs could eventually rise trillion dollars, she said.

Among other things, Ms. Gontareva put forward the idea of ​​using frozen Russian assets to revitalize the Ukrainian economy.

On Monday, Ukrainian President Volodymyr Zelenskyy said he hopes to get his country candidate country statusEuropean Union dans les semaines à venir“,”text”:”dans les semaines à venir”}}”>In the coming weeksand thanked Brussels for the speed of the procedure.

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