With 0.21 percent of GDP
Institute: Europe could take over Ukraine aids from the United States
13.03.2025 – 2:43 p.m.Reading time: 2 min.
According to economic experts, Europe would be able to provide the US Ukraine aids in the United States. Germany would have to invest 88 billion.
Europe could compensate for a permanent elimination of the US Ukraine aids, according to an analysis by the Kiel Institute for the World Economy (IFW). “Our data show that Europe would be able to largely compensate for the US aids-but only if the political decision-makers act determined,” said research director Christoph Trebesch. The only exception would be the US military education. This is where Europe is missing comparable skills that would have to be set up quickly.
So far, the European governments have made an average of 0.1 percent of their gross domestic product (GDP) a year for bilateral Ukraine aids. According to the IFW, the help would have to increase to 0.21 percent. In absolute numbers, this means an increase in European aid from currently 44 billion euros to 82 billion euros per year. The EU institutions would have to increase their expenses from 16 to 36 billion euros, Germany from six to at least nine billion euros and France from 1.5 to six billion euros.
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“If all of Europe followed the example of Denmark and mobilizes more than 0.5 percent of GDP every year, we could even compensate for the US aid significantly,” said Trebesch. In the case of military help from the USA, which would have to be replaced, it is mainly possible to do rocket artillery, ammunition for Haubitzen-Arillerie and air defense systems with a long range.
In order to absorb the replenishment of critical US systems and their ammunition, Europe could pass from the IFW’s point of view to acquire them on the international market or to buy comparable systems. European governments could also order weapons directly in Ukraine. This applies in particular to drones.
