How Can Europe Replace U.S. Support?

The Kiel Institute for the World Economy has released a new report outlining how Europe could replace U.S. support for Ukraine both financially and militarily. The organization has calculated that European governments as a whole will need to nearly double their aid flow from the current €44 billion per year to €82 billion per year, which equates to an increase of roughly 0.1 percent of their combined GDP to 0.21 percent of GDP. Analysts say this is within Europe’s capacity, highlighting how a handful of countries, including Denmark, the Baltic countries, Sweden and Norway are all already contributing more than 0.3 percent of their GDP each year to Ukraine’s defense.

According to the ifw-kiel’s proposed scenario, the biggest economies and institutions will need to play the biggest role in upping their financial aid to Ukraine, led by the EU (Commission and EIB), with an increase from the current €16 billion to €36 billion per year. It would be followed by Germany with an increase in support from €6 billion to €9 billion per year, the United Kingdom (up from €5 billion to €6.5 billion per year) and France (up from €1.5 billion to €6 billion per year).