NewsThe cost of admitting Ukraine into the EU could total up to 190 billion euros

The cost of admitting Ukraine into the EU could total up to 190 billion euros

The cost of admitting Ukraine into the EU could total up to 190 billion euros
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7:07 PM EST, December 11, 2023

The German Institute for Economic Research (IW) in Cologne has conducted an analysis indicating that if Ukraine were to join the European Union, up to 17 percent of the EU's common budget could be allocated to Kyiv, as reported by "Deutsche Welle".

Based on IW's estimates, the financial implications of integrating Ukraine fully into the EU could range from 130 to 190 billion euros.

The EU's multiannual budget for the years 2021-2027 approximates to 1.1 trillion euros. However, the researchers emphasized that the exact amount that could be allocated to Ukraine would hinge on factors such as the agricultural size and population of the country. In their calculations, the IW research team assumes that agricultural subsidies for Ukraine could range from 70 to 90 billion euros, while between 50 and 90 billion euros could be designated for cohesion policy, according to calculations by "Deutsche Welle".

This funding would serve to bolster the development of regions with less robust structures, to lessen the economic and social discrepancies across the various European regions.

EU Reform

In consideration of these figures, the necessity for internal reform within the EU is evident, stress scientists at the IW.

Such reforms would be crucial to credibly support the decision to admit Ukraine into the EU. This encompasses reform at both institutional and fiscal levels, including budget allocation. The experts propose that one way to facilitate this could involve decreasing cohesion policy spending for less affluent member states.

In early November, the European Commission advocated for the commencement of accession discussions with Ukraine. However, before initiating the first round of talks, Kyiv must complete the reforms currently underway.

The final decision to kick-start negotiations requires unanimous agreement from all EU member states. Ukraine is hopeful that this decision will be taken during the year's final summit, scheduled for the 14th and 15th of December.

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