Ukraine to get 186B euros after joining EU

According to internal estimates of the overall budget of the EU, Ukraine’s accession will entitle the country to receive about 186 billion euros over seven years, according to the Financial Times, Report informs referring to Kommersant newspaper.

This summer, EU officials assessed the potential financial consequences of new members joining the union. They prepared a study that used the union’s budget rules for 2021-2027. Officials made calculations based on the fact that the EU would include Ukraine, Moldova, Georgia and six Western Balkan states.

The accession of all nine members will cost the EU budget 256.8 billion euros. Spillover effects for existing EU member states would include cuts to farm subsidies by around a fifth. The newspaper estimates that with the addition of nine new member states, the current budget will increase by 21% to 1.47 trillion euros. This is approximately 1.4% of the gross national income of 36 countries.

While full expansion of the union might take a decade or more and entail major reforms to existing fiscal mechanisms, the expected scale of changes needed will decisively alter the fiscal balance within the bloc.