Categories: Politics

Reconstruction will cost $2 trillion

The heads of state met in Paris on Tuesday for the Ukraine conference. Among them was Federal President Ignazio Cassis.

Ignazio Cassis (61) ended his year under the Ukrainian star as Federal President in Paris on Tuesday with a firm promise: “Switzerland will be involved in the reconstruction of Ukraine.” The first step was taken in July at the Ukraine conference in Lugano.

According to Cassis, Switzerland is aware that this will cost enormous amounts of money. “We are also well aware that this number is increasing every day with every further destruction.” But together with the EU and the G7 countries, they will support Ukraine.

Switzerland contributed CHF 1.3 billion

Cassis announced in Paris that the federal government has already spent CHF 1.3 billion on Ukraine – CHF 1 billion to support the 70,000 Ukrainian refugees admitted to Switzerland, and CHF 300 million in humanitarian aid. Help such as supplying generators and technicians to the power grid destroyed by Russian bombs.

“The initial estimate of a trillion dollars is exceeded”Federal President Ignazio Cassis on Ukraine’s reconstruction costs

An obviously modest amount compared to the needs. Just to function, the Ukrainian state needs €4 billion in aid per month – just for the salaries of its officials and administrative costs.

Of this, the EU has to contribute 1.5 billion euros, the rest comes from the non-European G7 countries, for example from the US. To date, Washington has provided about $20 billion in civilian and military aid to Ukraine.

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Brussels to coordinate reconstruction

But running costs are just one item. Rebuilding infrastructure after the end of the conflict is another. “The initial estimate of $1 trillion will certainly be exceeded,” Cassis admitted. In fact, sources such as the World Bank already estimate the current costs of the conflict to be at least twice as high.

Exactly how the reconstruction proceeds depends on the future coordination office, which the EU and the G7 countries will probably establish in Brussels, but which would also have an office in Kiev. Switzerland should be represented there by a diplomat.

Richard Werley
Source:Blick

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