When major challenges are faced, politicians often call for the Marshall Plan. This is what happened with Marshall’s plans for the ailing economy during the coronavirus pandemic and with Marshall’s plans for the environment. Just before the June G7 summit, German Chancellor Olaf Scholz spoke in support of the Marshall Plan for Ukraine. In his prepared remarks for the summit, Scholz said that during his visit to Ukraine, he was reminded of images of German cities destroyed after World War II. – And then war-torn Europe, today Ukraine needs a Marshall plan for reconstruction – he points out. It should be, as he puts it, “a generational task”.

Now Olaf Scholz and the President of the European Commission, Ursula von der Leyen, have done it all again. At their invitation in Berlin, international experts met on Tuesday (25 October) to discuss the reconstruction of Ukraine after the end of the war. The Prime Minister of Ukraine, Denys Szmyhal, also attended the meeting. “The bottom line is now, amid the horrors of this war, it’s a sign of hope that things will get better again,” Scholz said last weekend.

Reconstruction plan

To help Europe, the then US Secretary of State, George C. Marshall, in June 1947 proposed the European Recovery Program (ERP), now known as the Marshall Plan.

The plan stipulates that the US will provide loans to Europe for reconstruction and supply goods, raw materials, and food. Thus, between 1948 and 1952, more than 12 billion dollars flowed into 16 European countries, including Germany, Italy, France, and the United Kingdom. West Germany received about $1.5 billion. Financial aid not only caused an economic miracle in Europe, but also opened up new markets for the United States.

The Marshall Plan also had a political aspect, as not all European countries could benefit from American money. While the US wanted to limit the influence of the Soviet Union in Eastern Europe, Moscow feared Western control and unhesitatingly barred countries such as Hungary, Czechoslovakia, and Poland from participating in reconstruction programs.

In the collective memory of Germany and Europe, the Marshall Plan is widely recognized as a successful idea. ERP has contributed to the growth of the European economy and allowed democratic structures to take root. That is why today the Marshall Plan is often cited as an example of post-war or crisis reconstruction.

What does the Marshall Plan for Ukraine look like?

The Chancellor calling for the Marshall Plan is about a long-term perspective. As he said in a statement in June in the Bundestag, he relied on the fact that the war in Ukraine would continue for some time. Like the Marshall Plan, the West, in his opinion, needed to prepare for the country’s long-term reconstruction. “We will need many billions of euros and dollars for reconstruction over the years,” he said. At the same time, he assured that, together with the combined European powers, he still wanted to give Ukraine massive support, “financial, economic, humanitarian, political and, last, but not leastthrough the provision of weapons”.

Immediately before the conference on the reconstruction of Ukraine, there were words from this country that Germany should provide 500 million dollars (506 million euros) a month to finance the state budget during the war. – We need four to five billion dollars in our budget every month. We believe that Germany can take over about $500 million a month, especially in the perspective of 2023 – said Alexander Rodnianski, economic adviser to President Volodymyr Zelensky, according to the media. Ukraine relies on the EU to transfer about two billion dollars a month.

The President of the European Investment Bank, Werner Hoyer, expects a multi-billion dollar aid package for Ukraine. What is needed, he argues, is something that is “really aimed at a global audience, not just European taxpayers.” The initiative for reconstruction should be taken up by Ukraine in coordination with the European Union, G7 and G20 countries, as well as with international institutions and financial organizations.

This article was originally published on 6/25/2022eyes and updated on 10/25/2022