It’s not just the alleged stalemate in the counteroffensive that worries Ukraine: Kiev’s parliament, the Rada, this week will approve the 2024 budget, which reveals a deficit of 27 billion euros.
What has clearly created this massive deficit is the ongoing battle between the war effort and economic activity coming to a halt. But the real problem is that Ukraine faces a lot of skepticism about the financial support it will receive from its allies for the foreseeable future. The USA has not yet approved the new aid package, which is expected to fit about sixty billion dollars into Kiev’s coffers: Congress blocked this payment despite the pressure of President Joe Biden. Those who put Ukraine and Israel in the same pot and set out again.
Things are no better on the axis to Europe: EU aid will end in December and the Commission’s proposal to create a new €50 billion package is still pending. Two member states, Hungary and Slovakia, opposed providing more funds to Ukraine, citing the risk that the funds would fuel a system of corruption. But the package is also affected by the resistance of the so-called “frugal” segment, the member states most reluctant to expand the EU budget.
“It is very important to maintain macroeconomic stability, because we face the risk of economic crisis as well as war,” Ukrainian Finance Minister Serhiy Marchenko said. said. political. Marchenko warned that “If Ukraine enters a crisis, there will be spillover effects in the EU,” drawing attention to the risk of a new wave of migration and the effects of some food products such as wheat and other grains exported to the country on inflation. Europe.
Kiev claims to have made great progress in the fight against corruption despite its war-torn environment. European Commission President Ursula von der Leyen confirmed this progress during her recent visit to the country and is expected to present a formal request to member states this week to start negotiations on Ukraine’s accession to the EU.
Marchenko and President Volodymyr Zelensky are also expecting another step from Brussels: in fact, von der Leyen has committed to submit a legal proposal by the end of the year to transfer the value of profits from Russian assets seized in Europe to Kiev’s coffers. It corresponds to approximately 300 billion dollars.
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Source: Today IT
Karen Clayton is a seasoned journalist and author at The Nation Update, with a focus on world news and current events. She has a background in international relations, which gives her a deep understanding of the political, economic and social factors that shape the global landscape. She writes about a wide range of topics, including conflicts, political upheavals, and economic trends, as well as humanitarian crisis and human rights issues.
