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1. Explaining Ukraine’s recovery and reconstruction: what, how and when?

Author:
Tinatin Akhvlediani
Publication Date:
06-2024
Content Type:
Special Report
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
Russia’s full-scale invasion of Ukraine has resulted in colossal human loss. According to the World Bank, this has already in 2023 amounted to 26 000 civilian casualties, the displacement of around 3.7 million people internally within Ukraine and around 5.9 million externally in Europe and beyond. The war has pushed 7.1 million people into poverty and reversed 15 years of economic development. This is reflected in the drastic increase in inequality, particularly among women, children, people with disabilities and elderly. This CEPS Explainer aims to review what is at stake, how Ukraine’s reconstruction has been addressed thus far, and what conditions and timelines are necessary for scaling up efforts. It looks at the immediate and long-term needs for Ukraine’s recovery and reconstruction, examines the existing framework for coordinating and implementing rebuilding efforts, describes potential funding sources and analyses the financial support already committed for Ukraine’s reconstruction. Finally, it reviews Ukraine’s ability to effectively absorb reconstruction funds and outlines the basic conditions required for scaling up reconstruction.
Topic:
Reconstruction, Recovery, Economic Development, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

2. The Impact of Ukraine’s Accession on the EU’s Economy

Author:
Tinatin Akhvlediani and Veronika Movchan
Publication Date:
03-2024
Content Type:
Special Report
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
The groundwork for Ukraine’s integration into the EU’s single market was laid by the EU-Ukraine Association Agreement (AA). A key component of the AA, the Deep and Comprehensive Free Trade Area (DCFTA), paved the way for Ukraine’s gradual integration into the EU’s single market. Building on the DCFTA, Ukraine’s integration into the EU’s economy has significantly advanced since February 2022. In response to the invasion, the EU swiftly and temporarily but completely liberalised its market for Ukrainian goods through Autonomous Trade Measures (ATMs) and triggered the Temporary Protection Directive that has enabled over 4 million Ukrainian refugees to reside and work in the EU. With a continued swift trajectory, Ukraine’s integration is set to be much more comprehensive by the (yet unknown) time of accession. As this study outlines, the prospect of Ukraine’s accession to the EU brings some challenges but holds immense potential for mutual economic benefit. Free movement of goods. Full access under the ATM has not caused drastic changes in the EU’s imports or in the functioning of the single market in general. Yet, to avoid disruptions in the future, the accession treaty could include transition periods for full market access for Ukrainian goods in those EU Member States that may be vulnerable to a sharp increase in imports. Full trade liberalisation in services is expected to have more trade-easing effects, particularly for the EU, as it holds most of the reservations. Ukraine’s main EU partners in services trade are Germany and Poland, but services trade with Ukraine’s other major partners, including Estonia, has been steadily increasing since the implementation of the EU-Ukraine DCFTA. Thus, trade absorption capacity should be sustainable. Free movement of capital. Given the underdevelopment of Ukraine’s financial sector and capital markets, legislative and policy alignment should serve as a solid foundation for financial deepening in the country. Eased movement of capital will make it significantly easier to conduct business and trade and commercial and non-commercial payments between Ukraine and the EU. Free movement of workers. As long as Ukrainian workers fit the labour demands of the receiving EU countries, they could fill the gap in the labour supply and complement rather than replace local workers. An enlarged EU as a global supplier. Ukraine could strengthen the EU’s position in critical materials and key agricultural products, as well as contribute to the EU technologically with its emerging ICT sector and increasing skills and know-how in IT and computer services. Ukraine’s reconstruction and sustainable recovery is a significant challenge that requires substantial financial support. Yet, by addressing these considerations with foresight and diligence, Ukraine’s accession to the EU could not only elevate Ukraine’s standing but could also strengthen the EU’s position on the global stage.
Topic:
Reconstruction, European Union, Economy, Regional Integration, Trade, Recovery, and Russia-Ukraine War
Political Geography:
Europe and Ukraine

3. Toward Inclusive Recovery in Ukraine: Engaging Women and Civil Society in Ukraine’s Relief, Recovery, and Reconstruction

Author:
Jess Keller
Publication Date:
02-2023
Content Type:
Special Report
Institution:
Georgetown Institute for Women, Peace and Security (GIWPS)
Abstract:
Women’s participation in the design and implementation of Ukraine’s recovery programs is critical to maximize the effectiveness of the reconstruction process, take into account differentiated needs, and bolster post-conflict development. Key recommendations: Promote women’s participation, leadership, and decision-making in Ukraine’s planning frameworks and recovery process. Ensure new funding enables women’s active participation in Ukraine’s recovery and advances gender equality. Establish a gender-sensitive monitoring mechanism for the Ukrainian government to report on recovery progress and collect and analyze sex-disaggregated data. Prioritize the re-establishment of critical social infrastructure and services. Integrate gender equality in Ukraine’s EU accession commitments.
Topic:
Civil Society, Reconstruction, Women, Recovery, Participation, and Russia-Ukraine War
Political Geography:
Europe, Ukraine, and Eastern Europe

4. Designing Ukraine’s Recovery in the Spirit of the Marshall Plan

Author:
Ronja Ganster, Jacob Kirkegaard, Thomas Kleine-Brockhoff, and Bruce Stokes
Publication Date:
09-2022
Content Type:
Special Report
Institution:
German Marshall Fund of the United States (GMFUS)
Abstract:
The Marshall Plan is a source of inspiration and a fountain of hope for Ukraine’s recovery; evoking it is a marker of ambition. Yet, it cannot be a template for the international aspiration to help rebuild the country. A plan for Ukraine needs to take a 21st century shape. In the late 1940s, there was one hegemon and a set of newly built institutions to aid more than a dozen ailing current and future allies. Today, many countries are needed to help one. This necessitates utilizing and adapting existing aid mechanisms.
Topic:
Foreign Policy, Recovery, Post-Conflict, Russia-Ukraine War, and Marshall Plan
Political Geography:
Europe and Ukraine

5. A Modern Marshall Plan for Ukraine

Author:
Heather Conley
Publication Date:
10-2022
Content Type:
Special Report
Institution:
German Marshall Fund of the United States (GMFUS)
Abstract:
Can one of the most successful US foreign policy initiatives in the 20th century—the Marshall Plan—be replicated in the 21st century—a modern Marshall Plan for Ukraine? The unequivocal answer to this question is “yes,” but it is essential to draw upon historical and inspirational lessons from the Marshall Plan to ensure the reconstruction and long-term economic recovery of Ukraine succeeds.
Topic:
Foreign Policy, Recovery, Post-Conflict, Russia-Ukraine War, Defense Cooperation, and Marshall Plan
Political Geography:
Russia, Europe, and Ukraine

6. Hydrogen and Its Role in Post-Pandemic Recovery. Case Study of Portugal

Author:
Maciej Giers
Publication Date:
06-2022
Content Type:
Journal Article
Journal:
Polish Political Science Yearbook
Institution:
Polish Political Science Association (PPSA)
Abstract:
The article aims to analyse the potential role that hydrogen could play in the post-pandemic recovery of Portugal and its climate policy. The article focuses on reducing greenhouse gas emissions and creating new workplaces. The basis for analysis is the Portuguese hydrogen strategy, published in May 2020 and other strategic documents. In the first part of the article, climate goals adopted by the European Union and Portugal are described and analysed. Then the hydrogen strategy of Portugal was analysed from the perspective of hydrogen contribution to the emission reduction by 2030. The article describes the role of hydrogen in the Portuguese economy, paying particular attention to the 2020–2030 horizon, but also covers a period till 2040. The second part analyses the impact of COVID-19 on the Portuguese economy. Based on the International Energy Agency’s estimates, the potential for creating new workplaces is described.
Topic:
Climate Change, Recovery, Pandemic, COVID-19, Hydrogen, and Green Transition
Political Geography:
Europe and Portugal

7. Rome’s moment: Draghi, multilateralism, and Italy’s new strategy

Author:
Teresa Coratella and Arturo Varvelli
Publication Date:
05-2021
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
Italy is set to play a defining role in the use of the EU recovery fund, whose success or failure will likely shape European integration for years to come. Under Prime Minister Mario Draghi, the country is focused on dealing with the pandemic while promoting Italian and European interests as president of the G20 and co-chair of COP26. The Draghi government is shifting the priorities of Italian foreign policy towards the European Union, the transatlantic relationship, and multilateralism more broadly. This marks a break with the approaches of the previous two governments, which were intent on partnership with China and Russia. Draghi’s Italy will work primarily alongside other EU member states – particularly on health security, climate, and economic and infrastructure development – but could also act as a bridge between competing great powers. In doing so, Italy has an opportunity to position itself closer to the Franco-German engine and to help construct a multilateral system in which the EU and the US are equal partners.
Topic:
Diplomacy, Multilateralism, Recovery, and COVID-19
Political Geography:
Europe and Italy

8. Recovery and reform in the EU’s most vulnerable regions

Author:
Alison Hunter and Marta Pilati
Publication Date:
06-2021
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
Europe’s most vulnerable regions, characterised by persistent low growth and poverty, face a systemic lack of specific EU support. These regions display particularly high levels of vulnerability to the social, economic and territorial impacts of COVID-19, which will affect their recovery trajectories. They risk being left further behind in the EU’s complex pathway towards ‘a green and digital recovery’. The Union’s lack of focus and action for investing in these most vulnerable regions must be addressed. First and foremost, EU institutions and member states should recognise that some territories will struggle much more than others in their recovery trajectories. Ignoring their plight would have potentially far-reaching consequences. The EU’s ‘convergence machine’ could be damaged irreparably, with long-term – and potentially political – consequences. Alison Hunter and Marta Pilati continue their extensive research on the Union’s low-growth, poor regions, calling for the founding of a specific EU initiative to support them as well as further targeting by the existing policy architecture. In particular, they recommend: creating an EU policy space for regions experiencing long-term low growth and poverty, to promote the value and visibility of place-based support; aligning Cohesion Policy and the Recovery and Resilience Facility for improved policy coherence and greater investment impact; and tailoring support for growth-enhancing reforms in the EU’s most vulnerable regions. The EU’s green and digital recovery strategy fails to account for the specific needs of its poor and low-growth regions. Existing disparities and fragmentation challenges across the Union could widen or even become entrenched, casting new doubts on the EU’s ability and commitment to strengthen its convergence agenda and execute a just transition. The fallout could lead to a rise in territorial and political tensions while leaving many vulnerable places behind. Hunter and Pilati outline an agenda for a new EU initiative that champions reform support for these vulnerable territories and improves their prospects for a digital and green recovery.
Topic:
Political Economy, Poverty, Reform, European Union, Digital Economy, Economic Growth, Green Technology, Recovery, COVID-19, and Economic Recovery
Political Geography:
Europe

9. Europe’s path to strategic recovery: Brace, empower and engage

Author:
Giovanni Grevi
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
EU leaders should rise to the challenge posed by the COVID-19 pandemic and set the Union on the course of not only economic, but fully-fledged strategic recovery. This means strengthening Europe’s cohesion and resilience; leveraging Europe’s untapped potential to carry its full weight on the global stage; and engaging in upholding rules-based cooperation. If Europe fails to measure up to the task, the EU will drift towards more political fragmentation and strategic dependence. The health crisis has not only heightened but also highlighted Europe’s vulnerability to global challenges and disorder. The pandemic risks amplifying geopolitical competition, which is undermining multilateral cooperation at a time when sound management of our interdependence is crucial. Under such conditions, the dysfunction of the global order may lead to irretrievable system failure, with dire consequences for all. Europeans should not only craft a decisive response to the pandemic but also use it as a springboard to reinforce the EU and its domestic power base on the global stage. The EU and its member states must prepare to cope with power politics without endorsing its logic. They should become more strategic and, where need be, more autonomous. Discussion on a recovery fund should not be limited to the financial dimension, but instead thought of in terms of ‘grand strategy’. Socioeconomic recovery is the fuel of political cohesion, which in turn is the engine of a stronger Europe in the world. A more powerful Europe is the only vehicle geared to protect EU citizens from the many external challenges and project Europe’s interests on the global stage.
Topic:
European Union, Economy, Recovery, Pandemic, COVID-19, and Health Crisis
Political Geography:
Europe

10. EU Council Commentary: No progress in MFF and recovery fund

Author:
Vít Havelka
Publication Date:
06-2020
Content Type:
Commentary and Analysis
Institution:
Europeum Institute for European Policy
Abstract:
On Friday, EU leaders met online to discuss the newest proposal by the European Commission on the future MFF and Next Generation EU recovery fund. As expected, the meeting was devoted to a mere assessment of Member States’ starting negotiation positions, meaning no significant progress has been made. The leaders only agreed to finalize the negotiations as soon as possible, targeting at mid-July during the German presidency. The introduction of Next Generation EU fund rewrote the dividing lines in the EU manifesting during the previous MFF negotiations. Some groupings, such as Frugal Four remain more or less intact, whereas the group of “Friends of Cohesion” disintegrated into several blocks, which makes the negotiations less lucid. Southern Europe supports the new Commission proposals; Czech Republic, Hungary and several Baltic State express reservations. Nevertheless, the good news is that no country vetoed the Commissions proposal and there is a good chance to reach an agreement. Whether this will happen before the summer break remains to be seen. The member states positions are now far away from each other, and the leaders will have to manifest good negotiation skills in order to conclude the negotiations within one month.
Topic:
Governance, European Union, Economy, Recovery, and Coronavirus
Political Geography:
Europe