The New ‘Marshall Plan’

Written by Connor Foster | October 29, 2023

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With the war in Ukraine still raging, Europe is beginning to look towards the future and what Ukraine will look like in the aftermath. On October 24^th the German Chamber of Industry and Commerce and other European Union leaders gathered to discuss what they describe as a new Marshall Plan for Ukraine. The original Marshall Plan was initiated by the U.S. in the wake of World War II in order to rebuild Europe. Germany wants to play an active role in this plan considering their historical background with such intensive post-war reconstruction. Germany hopes to accomplish this by incentivizing German companies to invest in Ukraine. Foreign investment will be vital in rebuilding Ukraine as the World Bank estimates that the cost of reconstruction could be around $350 billion.

Outside of investment by private companies, German lobbies are encouraging all EU member states to put effort into planning for the future. European Commission President Ursula von der Leyen is stressing the importance of member states from the EU, the G-7, and many more to join in. The EU has already named Ukraine as a candidate to join the union and is hopeful that the reconstructive plans will help the country to become a valuable member state. Leaders from major financial institutions such as the International Monetary Fund, the European Investment Bank, and more were also invited to participate in the discussions. A large-scale multilateral approach will be the only way to solve the damage that has been done.