The European Union (EU) should provide financial assistance not only to help Ukrainian refugees in EU Member States, but also to stimulate their return home.
The recommendation was made in a joint article in the Los Angeles Times by Simon Johnson, a former economist at the Massachusetts Institute of Technology and former economist at the Massachusetts Institute of Technology.
Ustenko and Johnson recalled that more than 6.5 million people have fled Ukraine since the start of the war, mainly from neighboring countries. Some of them can work remotely, while others are forced to rely on state aid, so the European Union spends around € 10,000 a year on the budget.
“Overall, given the current situation, Ukraine’s economy is likely to shrink by at least 40% this year compared to 2021 and it will be difficult to achieve a stable return until the refugees return home. [ekonomikas] recovery, “noted the authors of the article.
Although about 30 thousand refugees are already returning to Ukraine a day, the government is finding it difficult to support their salaries because of a budget deficit of $ 5 billion, the authors explained.
“It would therefore be fair to make part of the EU’s financial assistance available to refugees upon their return to Ukraine,” wrote Ustenko and Johnson.
They believe that this can be done in three ways. First, allow refugees to receive EU money in Ukraine for a limited period, such as six months. Second, allocate additional resources to the Ukrainian government to recruit people for the reconstruction of the country.
The authors noted that this could help refugees return home, but that the process could be slow. It would therefore be easier to use the third option, with the EU providing the Ukrainian government with a temporary basic income program for all Ukrainians who have returned home.
If half of the more than 6 million Ukrainian refugees return home, EU governments could significantly reduce their living expenses, Ustenko and Johnson say.
“We do not know how long this war will last. The damage caused by the Russian invasion is still enormous. After all, Ukraine, a country of about 40 million people, will need international help and support for reconstruction. The process must begin now,” the authors wrote.
According to Frontex, 5.3 million Ukrainian citizens have arrived in the EU since the start of the war.
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