The G7 countries of the economically strong democracies and the European Union have jointly launched a Marshall Plan for the reconstruction of Ukraine. An expert conference chaired by Federal Chancellor Olaf Scholz and EU Commission President Ursula von der Leyen gave the starting signal for such a program based on the model of US aid to Europe after the Second World War.
Scholz called the reconstruction of Ukraine a “generational task that has to start now”. von der Leyen also warned that no time should be wasted. “We have to make sure that Ukraine gets the support it needs at all times.” Ukrainian President Volodymyr Zelenskyj called for rapid international investment.
Scholz, as the current chairman of the G7, organized the conference together with von der Leyen. The Ukrainian Prime Minister Denys Schmyhal traveled with a delegation from Kyiv, Zelenskyy was connected via video. No concrete financial commitments were made at the expert meeting, which was deliberately not designed as a donor conference. In addition to Germany, the G7 group also includes France, Italy, Japan, Canada, the USA and Great Britain.
Scholz: Shaping the future “for the coming years”
Parallel to the Berlin conference, Federal President Frank-Walter Steinmeier visited the Ukraine and promised further help. “My message to the Ukrainians is: We’re not just at your side. We’ll continue to support Ukraine – economically, politically and militarily.”
Transparent donor platform planned
In order to meet the challenge of reconstruction, private and state investors from all over the world would have to be brought together, Scholz demanded. The basis for a transparent donor platform must be created together with Ukraine and international partners. The reconstruction process should be coordinated via this platform. “It would be the central tool for cooperation and steering of European and international support.” Von der Leyen said the EU Commission is ready to take on a secretariat role.
Von der Leyen: Investing in Ukraine is an investment in democracy
Von der Leyen said that no country and no alliance could handle reconstruction alone. You need strong partners like the USA, Canada, Japan, Great Britain, Australia and other countries, as well as institutions like the World Bank. Every euro, every dollar, every pound, every yen is an investment in Ukraine, but also in democratic values worldwide.
Zelenskyj: Reconstruction not only after the end of the war
Zelenskyj explained that investments in hospitals, schools, transport routes and other vital infrastructure are particularly urgent. More than a third of Ukraine’s energy infrastructure was destroyed by rocket attacks. This part of the reconstruction cannot be postponed until after the war, Ukraine needs money for that now. The recovery fund being considered by the G7 of leading industrialized countries must start work as early as next month.
The President named a financial requirement of 38 billion dollars to balance the national deficit in the coming year. The money is needed to pay teachers and doctors and to pay out pensions. The G7 have already pledged further financial aid for 2023. In addition to military and humanitarian support, budget support of 20.7 billion US dollars has already flowed this year. A total of $33.3 billion has been pledged. By far the largest donor is the USA. According to the Ministry of Finance, Germany is the largest donor within the EU with a share of 1.4 billion euros.
Ukraine asks for more weapons
Ukrainian Prime Minister Schmyhal thanked Germany for its military support, especially for the Iris-T air defense system, which can protect an entire city. “We need tanks from our partners, from all our partners, we need armored vehicles, we need additional artillery.”
Morawiecki: Use oligarch funds for reconstruction
Poland’s Prime Minister Morawiecki said there was a large pool of money that could be used for reconstruction – namely frozen assets of Russian oligarchs. One must be aware that three to five billion would have to be brought together for the reconstruction per month. Morawiecki said the Ukraine war was also a wake-up call. He referred to dependencies on Russian gas.
G20 Presidency Indonesia announces peace initiative
Indonesian President Joko Widodo announced a peace initiative for Ukraine for the G20 summit of leading economic powers in Bali in November. At the summit, Indonesia will invite everyone “to sit down and engage in a constructive dialogue,” said Widodo in a video message at the end of the conference in Berlin, according to simultaneous translation. This includes those who are on different sides. Peace diplomacy has the highest priority. “The war must end,” demanded Widodo.
