EU Could Replace US Ukraine Aid With 0.2% GDP Increase: Feasible or Foolhardy?
Christoph Trebesch of the Kiel Institute found that the EU could readily replace potential US aid cuts to Ukraine by increasing its contribution by a mere 0.21% of its GDP, raising aid from €44 billion to €82 billion. This increase would primarily involve greater contributions from larger EU nations like Germany, France, and Spain, who currently contribute less than Scandinavian countries. While military aid replacement presents a greater challenge, particularly concerning high-tech weaponry, Europe’s financial capacity to replace US aid is demonstrably feasible. Ukraine’s current financial situation remains stable, however, future funding remains dependent on the continuation of Western support and the war’s trajectory.
John Q. Hosedrinker