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Germany opposes a European loan for the reconstruction of Ukraine

Germany opposes a European loan for the reconstruction of Ukraine

Lindner said during a press conference after a meeting with his counterparts from other countries group of seven Regarding aid to Ukraine, “Germany rejects an additional loan on the model of the European Union’s Next Generation Programme”, which was launched to overcome the repercussions of the Covid epidemic.

She said European Commission This week it is considering the idea of ​​obtaining a new syndicated loan for Kyiv.

The German minister considered that the European joint loan “was an opportunity that is only repeated once in a lifetime” and that it came with funds that “have not been fully exploited yet.”

He stressed that his government does not “support” the proposal to obtain a similar loan for Ukraine.

Christian Lindner explained that Berlin prefers to resort to the traditional “third country financial support” mechanisms that it has already tested European Union.

The project mentioned by the European Commission in mid-May is a financial instrument supported by the European budget and allows Ukraine to be given loans and subsidies.

She explained at the time that it would be conditional on reforms in the areas of rule of law and anti-corruption and making investments in line with European digital and climate goals.

The Commission confirmed that the mechanism will be based on “the experience gained by the European Union in the context of the Recovery and Resilience Facility”, the main instrument of the European Recovery Plan aimed at supporting EU countries in the COVID-19 crisis and financed in an unprecedented way through a syndicated loan.

But the idea of ​​a new syndicated loan raises the reservations of the so-called “frugal” northern countries, which reluctantly agreed to the European recovery plan in the summer of 2020.

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Germany has historically been reticent about the idea of ​​joint loans, but it surprised observers when it proposed with France the “Next Generation Program from the European Union.”