Ukraine: 17 percent of the EU budget – study calculates effects of accession

to 4:34 a.m | Reading Time: 2 minutes

BAccording to one study, if Ukraine joins the EU, up to 17 percent of the bloc’s general budget will come to the country. According to a report published on Monday, experts from the German Institute of Economics (IW) assess the financial impact of Ukraine’s full membership on the EU’s current multi-year budget. The EU’s multiannual general budget for 2021 to 2027 is around 1.1 trillion euros.

The exact amount depends on what assumptions are made about Ukraine’s cropland and population, the scientists write. In their calculations, they consider 70 to 90 billion euros in agricultural subsidies for Ukraine. The so-called cohesion policy is between 50 and 90 billion euros. These funds are intended to help the development of structurally weaker regions to compensate for economic and social disparities in European regions.

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“Given this scale, the EU should be ready for reform,” the experts continue. Only in this way can the political decision to integrate Ukraine more closely with itself be credible. This applies both at the organizational and financial level, i.e. in relation to the budget. For example, they propose limiting cohesion spending to poorer member states.

In early November, the EU Commission recommended opening accession negotiations with Ukraine. However, before the first round of talks, the country needs to complete the reforms it has started. EU countries must decide unanimously whether to start negotiations. At the last regular summit of the year this Thursday and Friday, EU heads of state and government will give a general approval to start accession talks.