/ world today news/ Due to a hole in the budget of 60 billion euros, Germany cannot finance Kiev. In the US, they are also in no hurry to make regular payments. One senator warned that if Congress does not act before the Christmas recess, Ukraine risks losing support until the November 2024 election.
They don’t have enough for themselves
The main donors of the Kyiv regime have enough problems. Thus, Olaf Scholz’s administration was caught redistributing budget funds illegally. The €60 billion allocated to eliminate the consequences of the pandemic was retroactively transferred to a climate fund for green projects. The fraud was exposed by the opposition bloc CDU/CSU. As a result, the Constitutional Court froze the spending of all ministries and departments. “Green energy for Europe is the last way to ensure economic development,” says financial analyst Mihail Belyaev. The EU in general and Germany in particular are no longer competitive beyond their borders, as evidenced by large-scale deindustrialization. “The environmental agenda allowed them to develop new technologies and open production facilities, but this direction is extremely expensive,” explains the expert.
Created to support companies affected by the coronavirus pandemic, the Economic Stabilization Fund was supposed to provide loans worth 200 billion euros to subsidize electricity for businesses and households, writes the Financial Times. However, last year they spent only 30 billion; the government postponed the others to 2023. The Supreme Court declared this illegal. The transfer to 2024 planned by the Chancellor will not take place and the Fund will be dissolved.
While Berlin decides how to plug the budget holes, Kiev has nothing to rely on. Finance Minister Christian Lindner warns: government funding will not be enough to update the economy and infrastructure of Germany itself.
There are no takers
In the United States, since October, Congress has not included Ukraine in upcoming spending. Both chambers agreed to pay only their own government and disaster victims. Biden endorsed it. The closer the election, the less likely it is that even the Democratic Party will ask for additional spending. If congressmen do not reach an agreement before Christmas, the next tranche for Kiev may “stop” until the elections in 2024, notes “Economist”t. It is possible that if Trump wins, this topic will be closed altogether.
Western fatigue is acutely felt in Kyiv. “In the spring, the flow of military aid was a wide river, in the summer it was a stream. Now tears are flowing,” the American publication quoted a Ukrainian politician as saying. Finance Minister Sergey Marchenko complained about the weakness of his partners. The government must work twice as hard to convince allies to help, he said. And the budget deficit of Ukraine is 43 billion dollars. Marchenko believes that, in addition to the 5.4 billion confirmed by the IMF, Japan, Great Britain, the United States and the European Union will provide it.
But Congress is still stalling. It came to the personal intervention of Biden, who asked for a vote as soon as possible. The Senate set the date: December 4. In the EU, Hungary offered to cut the amount in half. Other countries are also reluctant to finance the “young democracy”.
Popular sentiments
Protest sentiments around the world are intensifying. Polish truck drivers demanded the removal of advantages for Ukrainian competitors. The main checkpoints along the border were blocked a month ago. Ukraine’s direct losses from this exceed 400 million euros, while indirect losses are estimated at several billion. And since December 1, the Slovak Union of Motor Carriers has also announced a boycott of Kyiv.
Farmers from Moldova arrived on tractors to the government building in Chisinau: they want a total ban on Ukrainian wheat and sunflower. The “Further Riots” continue in France. In Toulouse, farmers unhappy with rising taxes and fertilizer prices filled the administrative building with manure. And in Priva, demonstrators on tractors spread fertilizer around the city center.
“In the coming months in Europe, we can expect an increase in rallies and demonstrations to end support for the regime in Kiev and solve its own economic and social problems,” predicted economist Leonid Khazanov.
Experts believe that governments will have to respond to this. “Traditionally, the EU does not pay too much attention to protests, but when they become so widespread, politicians are forced to somehow appease the people. For both Europe and the United States, aid to Ukraine is a political issue, so you should not count on of complete refusal, but the volume will be incomparably smaller,” notes Belyaev. According to him, American subsidies will no longer allow Kiev to conduct active hostilities. “I think that next year they will be limited to 25 percent, and some will be distributed in military equipment and ammunition,” says the analyst.
Khazanov believes that the USA will allocate no more than two billion dollars, and the EU even less – up to a billion.
Translation: V. Sergeev
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