Romania and 3 other EU member states (Greece, Poland and Lithuania) call on the European Commission to grant them exemptions from the budget deficit rules, with respect to military expenditure, in order to be able to make the investments required after the Russian invasion in Ukraine. They want this expenditure excluded from the deficit calculation, so that the 3% of GDP ceiling required by the EU may be observed.
The 4 countries argue that this would help them mitigate the risks facing the Union. Meanwhile, a report made public by the World Bank, the Ukrainian government and the European Commission indicates that Ukraine’s reconstruction after the Russian invasion may cost around USD 350 bln, with figures set to increase in the coming months, as the war continues.
According to the report, reconstruction and revamping needs in the social, industrial and infrastructure fields are 1.5 times higher than Ukraine’s GDP in 2021. Russia’s aggression had caused direct damages of over USD 97 bln by 1 June, with the most affected areas including housing (40% of the total damages), transports (31%), trade and industry (10%). The regions of Donetsk, Luhansk and Kharkiv are the most heavily hit, followed by Kyiv, Chernihiv and Zaporizhzhia.
Radio Romania International
