The Commission is considering issuing a joint debt for Ukraine

LAST UPDATE 22:35

The European Commission is reportedly considering joint borrowing for Ukraine, according to Politico.

In particular, the Commission is considering issuing a new European debt to meet Ukraine’s short-term financing needs for the next three months, the report said. These needs are estimated at around 15 billion euros.

The Commission’s plan for Ukraine is expected to be presented this month, even on 18 May.

According to the Ukrainian government and the International Monetary Fund, Ukraine needs 5 billion euros a month to meet its needs, from paying salaries and pensions to caring for displaced people and other war-related expenses.

The United States has pledged to cover about a third of the amount, leaving a balance of about 10 billion euros.

Commission briefs EU ambassadors on Friday for a plan to bridge this gap, which would involve the Commission issuing debt on the basis of guarantees provided by EU countries. This is similar to the so-called SURE program used during the pandemic to mobilize funds.

Although Ukraine’s funding gap is much smaller, the Commission has not provided further details on the amount of funds needed and how the funds will be distributed among the countries.

A few countries, including Germany, Austria and Greece, have asked the Commission to present alternative funding options ahead of the official presentation of the plan on May 18, according to Politico.

At the same time, if the participation of non-EU countries is ensured. such as Japan, Norway and others, this will limit the amount to be covered by the EU. Thus the remaining amount can be covered by bilateral agreements.