Ukraine Reconstruction Conference in Germany: "We Must Launch a Second Marshall Plan"

On the 23rd (local time), a Ukrainian resident walks around a building devastated by a Russian missile attack in Mykolaiv, Ukraine. (Photo by Reuters)

[Asia Economy Reporter Yujin Cho] Following the conference in Switzerland last July, an international meeting on Ukraine's reconstruction is being held in Germany, accelerating the international community's support efforts for Ukraine, which has been devastated by war. There are also calls for foreign aid on the scale of the "Marshall Plan," which led Europe's post-World War II recovery, to rebuild Ukraine.

According to foreign media on the 23rd (local time), Germany, the chair country of the Group of Seven (G7), will hold an international conference called the "Germany-Ukraine Business Forum" in Berlin on the 24th to discuss post-war reconstruction support measures for Ukraine.

This meeting will cover infrastructure damage recovery across all industries including agriculture and energy, as well as ways companies can contribute. German Chancellor Olaf Scholz, Ukrainian Prime Minister Denys Shmyhal, heads of government from various European countries, and German business leaders will attend in large numbers, while Ukrainian President Volodymyr Zelenskyy is expected to participate via video conference.

Major German lobbying firms have proposed a 20-page report at this forum that includes establishing an advisory committee to serve as a liaison connecting European countries involved in Ukraine's reconstruction efforts with the Ukrainian government, and providing investment incentives to German companies participating in support for Ukraine.

The core of this report is the need for foreign aid on the scale of the Marshall Plan, which was led by the United States from 1947 for four years (fiscal years) with a budget of $13 billion right after World War II.

The World Bank estimated that $350 billion in funding would be needed for Ukraine's reconstruction, about 1.6 times Ukraine's GDP of $200 billion last year, while Ukraine itself projected that up to $800 billion (approximately 1,150 trillion won), more than twice that amount, would be required.

Bloomberg News reported that the meeting is expected to discuss the largest scale of support ever.

At the earlier G7 summit, it was agreed to provide up to $29.5 billion (about 42 trillion won) in budget support for the Ukrainian government through the World Bank (WB) and the International Monetary Fund (IMF).

The German economic newspaper Frankfurter Allgemeine Zeitung (FAZ) commented, "Chancellor Scholz and EU Commission President Ursula von der Leyen have called for a new Marshall Plan for the 21st century," adding, "The path to reconstruction is also the path to Ukraine's EU membership. However, setting high standards for the rule of law and eradicating corruption must precede this."

In a statement delivered to the German parliament in June, Chancellor Scholz emphasized the need for massive financial support for Ukraine's reconstruction and mentioned the Marshall Plan as a role model for rebuilding Ukraine. He said, "Just like Europe was devastated after World War II, a Marshall Plan is needed for Ukraine's reconstruction," and added, "Rebuilding Ukraine will be a task for generations."

This content was produced with the assistance of AI translation services.