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Europe must lead Ukraine’s reconstruction

By Kenneth Rogoff

07 Aug 2023 · 3 min read

informed Summary

  1. After 17 months of intense fighting, the cost of rebuilding Ukraine will most likely be far higher than previously expected. European countries, which have so far contributed relatively little to its defense, must drive this effort, argues Kenneth Rogoff in PS.

CAMBRIDGE – Who should pay for Ukraine’s postwar reconstruction? Shortly after Russia’s invasion, my co-authors and I estimated that it would cost roughly €200-500 billion ($220-550 billion) to rebuild the country and called for Europe to spearhead the recovery effort. After more than 500 days of death and destruction, the projected costs have probably at least doubled. Consequently, the need for Europe to step up and assume responsibility has become increasingly urgent.

While the United States is also deeply invested in Ukraine’s future, as its massive economic and military support for the country has shown, there are several reasons why Europe must take the lead in coordinating and financing the country’s postwar recovery.

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