June 29, 2022

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War against Ukraine: Van der Leyen wants to reconcile with reforms

Status: 05/20/2022 02:21 am

EU Commission President Van der Leyen wants to link Ukraine’s restructuring of EU access with necessary reforms. Businessman Drooger backs joint EU loan for restructuring.

EU Commission Chairman Ursula von der Leyen has proposed linking future reconstruction aid to Ukraine with reforms based on the country’s willingness to join the EU.

“We have to finance the reconstruction of Ukraine anyway,” said Van der Leyen on the ZDF project ‘Mabrid Ilner’. Then, in his view, it made sense: “Investments are needed, yes, but immediately. Reforms, for example, against corruption or, for example, the establishment of the rule of law in Ukraine.

According to Van der Leyen, the EU is also exploring ways to finance post-war reconstruction of frozen Russian oligarchy assets in Ukraine. In this way, Russia will be able to contribute to post-war reconstruction, the commission chairman said.

Lots of motivation to join

Ukraine wants to join the EU at any cost, so there is a lot of impetus for the upcoming accession process. Ukraine has already applied to join the EU and wants to join soon. Last but not least, French President Emmanuel Macron and President Olaf Scholes (SPD) slowed down. It usually takes several years from the date of application to access the EU.

Von der Leyen stressed the course of the practice depending on how Ukraine is developing. “How it manages this reconstruction at the end of this war depends on Ukraine, and we will help with that, but how does it really implement reforms, how does it eliminate oligarchy, and how does it make the necessary economic reforms.”

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Wirtschaftsweiser: Common EU loans for restructuring

Meanwhile, economist Achim Drooker spoke in support of financing Ukraine’s restructuring through joint loans from the European Union. Trucker Funke told reporters at a press conference that a model such as the Corona Reconstruction Fund would make sense for planned financial aid to Ukraine.

A member of the Advisory Committee on the Assessment of Overall Economic Growth considers such a tool to stabilize the economy economically justified. “While the 500 billion euros may seem huge, it is only 3 percent of the EU’s economic output,” the economist said.

Collective borrowing by the EU carries less risks than uncoordinated national borrowing, “which strengthens confidence in the EU and its ability to act collectively.”