The project commissioned by the European Parliament’s Committee on Budgets (BUDG) focuses on mechanisms and resources of financing Ukraine’s reconstruction through the MFF.
A first aim of the project is to understand the scale of financial means that reconstruction will require, while also defining which actions could already be pursued today to ensure that EU financial support dedicated to reconstruction will flow swiftly and steadily once the war ends. In addition, the project seeks to identify potential obstacles (e.g. the likely opposition of Russia to pay war reparations to Ukraine or the difficulties for Member States to increase their contribution to the EU budget beyond a certain level given fiscal consolidation trends). Against all this background, the project focuses on assessing the role that the EU budget could play in Ukraine’s reconstruction and exploring which financial instruments (including leveraging, blending, and guarantees) may be most adequate for mobilising the necessary support.
Prepared briefing will address the following issues:
What scale of financial resources will be required for Ukraine’s reconstruction under different scenarios?
Which actions should be pursued to ensure that EU (and global?) financial support dedicated to reconstruction can be mobilised and flow smoothly and in a timely manner, once the war ends?
Which obstacles to EU financial support for reconstruction can be identified? How can these be mitigated?
In the light of these obstacles and other considerations above, what role could the EU budget play in Ukraine’s reconstruction?
Last, what is the optimal mix in the use of different EU budgetary instruments (loans, grants, budgetary guarantees, blending operations) to maximise the impact of the MFF in supporting the reconstruction of Ukraine taking into account the economic circumstances?
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