Politico journalists point out that against the background of problems with the approval of funding for aid to Ukraine from the US, EU aid for €50 billion will not be enough to cover Kyiv's external financing needs.
To what extent is Ukraine satisfied with EU aid for €50 billion?
Journalists of the publication note that with each new day of the criminal war unleashed by Russia against Ukraine, Kyiv's need for additional financing is growing.
At the same time, the publication notes that EU countries relied on the US to support Ukraine. Still, President Joe Biden cannot influence Congress to approve his request for further aid financing to Ukraine.
At the same time, fears are growing in the EU that a significant part of efforts to help Ukraine will now rely on European partners.
By 2027, Ukraine should receive EUR 50 billion in aid from the EU.
However, as the authors of the publication note regarding the estimates of representatives of the IMF, only this year will the deficit of Ukraine's financial needs amount to more than 40 billion dollars.
One of the most significant risks for Ukraine this year will be additional money printing against the backdrop of rising inflation.
€50 billion comes from the EU's central budget, and while that pales in comparison to the €1.074 trillion the bloc has in its coffers over a seven-year period, finding spare cash in a coffers earmarked for everything from subsidising farmers to building roads is very difficult , — says the article of the publication.
The publication notes that Brussels is considering alternative funding sources.
At the same time, European partners do not reject the option that Ukraine will eventually have to switch to entirely independent financing of its own needs.
Ukraine must become more self-sufficient in the future, as it cannot continue to finance half of its budget through external financing, says Matteo Patrone, a top European official who works with Ukraine at the EBRD.
How the USA and the EU plan to further help Ukraine
Currently, one of the critical options for further funding of aid to Ukraine, which the USA and Western partners are considering, is the attraction of funds from the frozen assets of the Russian Federation.
However, Germany, France and Italy oppose this.
For its part, Kyiv relies on Western loans and grants to cover basic social costs.
Since the beginning of the criminal invasion of the Russian army in Ukraine, Kyiv has received 27.5 billion euros and 22.9 billion euros, respectively, from the USA and the EU in the form of grants and loans.
The authors of the article note that during this year, Ukraine's planned financing looks sufficient, but EU aid may decrease yearly.
It is noted that international financial organisations are sounding the alarm that the end of Western support to Ukraine could lead to a disaster for the war-torn country.
This tension will reopen the biggest fault line in the EU: Between those who believe that Russia must be defeated and those who want to end the war, even without a victory for Ukraine. Currently, the latter camp is little more than a whisper in the corridors of power, but their voices will grow louder as the number of bills grows, the article says.
