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EU draining it’s resources to cover Ukraine War efforts, FT

by Filippo Rossi
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hahn says european treasury at risk over ukraine crisis

In a Financial Times article published a few days ago (https://www.ft.com/content/43cf2f26-7830-4dfb-bf1b-39c55a2b0252) EU Budget commissioner Johannes Hahn made some strong statements completely ignored by the rest of the medias, regarding the actual budgetary situation of the European Union and the war in Ukraine.

According to the bureaucrat, the Budgetary review, firstly planned in 2024 due to Covid pandemic emergency expenses, could be anticipated because. “Indeed, originally before the pandemic it was foreseen and agreed that the next MFF revision should take place in 2024. And I think it’s not a particular secret that we will probably do it much earlier,” he said to the FT.

According to the EU, 4bn euros were allocated since the start of the conflict last February to cover the humanitarian and keep the Ukrainian state running. The next years’ budget is planned to be 185bn euros. However, according to what Hahn said, in autumn there might be an addition depending on what the Ukraine needs.

“The speed with which the EU is burning through its reserves to cover Ukraine-related expenditures has raised concerns in the European parliament. According to the lead lawmaker for the 2023 budget, Romanian centrist MEP Nicu Ștefănuță, the draft budget for next year leaves very little money for other emergencies — just €450mn. That’s a fraction of what annual budgets usually have set aside for rainy days (this year that margin was around €1.5bn). “The Union’s budget is very limited and we need an urgent revision of the seven-year multi-annual financial framework today, not in 2024,” Ștefănuță said”.

This paragraphed, quoted from the FT report, shows what this could mean for the EU, who is actually draining its funds to support the war in the Ukraine and the humanitarian aid. This could be an alarm to adjust the 7-year budget plan. another problem for the divided bureaucratic giant. Despite all what is happening, on June 8th the European Parliament decided to approve a legislation calling a legislation to grant the Ukraine to become an EU member.

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