The European Commission is reportedly considering borrowing billions of dollars it doesn’t have in order to give it to Ukraine.
In order to buttress Ukraine’s floundering economy, the EU is now considering borrowing up to billions of dollars for the express purpose of handing it over to the invaded nation.
Such a proposal — which is reportedly set to be unveiled around May 18 — has been criticised by a number of people within the bloc, with Alternative für Deutschland’s Delegation Leader to the EU Parliament, Dr. Nicolaus Fest MEP, telling Breitbart Europe that the plan risked breaching the “no-debt clause” within a major EU treaty.
According to three diplomats who were in contact with POLITICO, the European Commission is looking at borrowing up to $15 billion to hand to Ukraine.
For this purpose, the commission appears to be planning on using a similar borrowing system which allowed the bloc to take out loans during the Chinese Coronavirus pandemic, which they seemingly hope will be added to by aid packages from the likes of Japan and the UK.
However, one MEP has warned that such a move might break a central tenet of one of the European Union’s founding treaties, and has urged that the commission explores other options to help the people of both Europe and Ukraine.
“The aggression from Russia has had enormous global ramifications that require solidarity from all corners of the globe,” Dr. Nicolaus Fest MEP told Breitbart Europe.
“However, if the EU wants to help Ukraine it should finance this from its own resources and not from issuing new debt,” he continued. “The proposal from the EU arguably violates the no-debt clause of Article 311 of the TFEU and will simply add to the already skyrocketing amounts of debt that future generations will have to burden.”
“I urge the EU to explore all options to find the optimal solution for the people of Ukraine and Europe,” the AfD politician went on to add.
While the European Commission’s plan to borrow money to hand over to Ukraine will no doubt be contentious in Europe, the amount the bloc is looking to take out in loans pales in comparison to the tens of billions the United States is sending to the eastern nation.
U.S. Democrats have already taken the first steps in the process of sending $40 Billion to Ukraine, passing the massive financial aid package through the House of Representatives on Tuesday.
The decision comes at a time of rapid inflation within the United States, with a CNN poll finding that fears surrounding the economy top the list of concerns Americans currently have.
Despite this, the US’s Democrat majority legislatures look set to also push through a $20 billion spending package for COVID-19 related funding.
“I think our policies help. Not hurt,” US President Joe Biden said on Tuesday in regards to the inflation issues facing the United States.
“The vast majority of the economists think that this is going to be a real tough problem to solve, but it’s not because of spending,” he continued, before insisting that inflation was his administration’s “top domestic priority”, and that he could “taste” that the average American was frustrated at the state of the economy.
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