EBRD head calls Western aid to Ukraine more than a Marshall Plan
14 February 2024 17:10
Western countries’ financial support for Ukraine exceeds the scope of the Marshall Plan. This was stated by the head of the European Bank for Reconstruction and Development, Odile Renaud-Basso, 
reports citing Politico.
“[EU financial assistance] is much larger in real terms than any Marshall Plan since World War II in terms of percentage of support of GDP… The fact is that they [Ukraine] have received 50 per cent of their budget from external support,”
– said the EBRD official.
She noted that the expected €18 billion for Ukraine in 2024 is almost a tenth of its projected GDP of €186 billion.
The EBRD has provided €3.8 billion in loans to Ukraine since the start of the full-scale war and has pledged to increase its support when the conflict ends.
Marshall Plan
The Marshall Plan is a programme of economic assistance to Western European countries from the US government after World War II. This programme was implemented from 1948 to 1952 and cost the US $13.3 billion in total, which in today’s money is worth $173 billion. It is believed that this programme brought the European economy out of decline. For example, the total GDP of Western European countries grew by 32% during the programme, and industrial production increased by 40% compared to pre-war levels.
Assistance to Ukraine
As of June 2023, Ukraine has received a total of €170 billion in aid from partners, according to the Ministry of Reintegration. This amount includes military, financial and humanitarian aid. Aid from the US reached €71 billion, while the EU allocated €62 billion. Half of these funds were financial aid, about 40% were military aid, and the rest were humanitarian aid.
According to the Managing Director of the International Monetary Fund, Kristalina Georgieva, Ukraine currently needs €42 billion to maintain macroeconomic stability.
(Will there be?) help from the US
The House of Representatives is currently considering a bill that would allocate $61bn in aid to Ukraine.
50 billion euros from the EU
At a summit in Brussels on 1 February, EU leaders approved a mechanism to allocate €50bn to Ukraine for the period 2024-2027. As previously reported by the EU, this programme consists of €17 billion in grants and €33 billion in loans. The mechanism provides not only for financing budgetary areas in Ukraine during the war, but also for programmes aimed at implementing the reforms that are essential for Ukraine’s accession to the EU.
IMF loan programme
In March 2023, Ukraine agreed with the IMF on a new four-year loan programme worth USD 15.6 billion. The programme will have two phases. The first phase, which will last 12-18 months, is aimed at ensuring fiscal, price and financial stability. The second stage involves more in-depth measures aimed at macroeconomic stability, recovery and reconstruction of the country, and economic growth. At all stages, Ukraine should continue reforms, such as anti-corruption and governance, and refrain from tax cuts.
