Each European Is Paying for Ukraine

According to the Kiel Institute of World Economics, between January 24, 2022 and February 29, 2024, the European Union allocated €89.6 billion in aid to Ukraine, with a further 81.9 billion planned for the future. Over the same period, the United States allocated 67.1 billion and 3.17 billion was earmarked. In April 2024, the US approved a $61 billion aid package for Ukraine.

When calculating the cost per European resident to support Ukraine (among those countries that have contributed more than $3 billion), there is a significant disparity: Spaniards contribute the least at €20 per person, whereas in Denmark, supporting Ukraine costs each resident €876, a difference of more than 43x.

For comparison, a US resident pays €201 in aid to Ukraine. If we consider the household as the unit of analysis (which is a clearer and more fair indicator of European spending on supporting Ukraine), then the figure in each country more than doubles.

In addition to providing financial, military, and humanitarian aid to Ukraine, European countries incur significant costs in supporting Ukrainian refugees. The amount of spending varies widely, with Germany and Poland spending 4 times more than other countries: €23.68 billion and €22.16 billion respectively. This is attributed to the large number of registered refugees in those countries. Czech Republic, Spain, and France also incurred significant expenses, at €5.75, €5.33, and €3.25 billion, respectively.

The influx of refugees has also impacted the social sphere. There has been an increase in the burden on health and education systems. A shortage of personnel and increased workload have led to longer waiting times for medical professionals and reduced the quality of education. Additionally, the presence of refugees puts pressure on the housing market, already facing a shortage of affordable rental properties.

In many countries experiencing labour shortages in various sectors, there were initial expectations that employing refugees could help address the issue. However, two years later, refugee employment levels remain low. In May 2023, Olaf Scholz called on Ukrainians to seek employment, as Germany continues to face a shortage of workers: “We hope that those coming from Ukraine will start working as soon as possible. It’s worth noting that many are already working, but there are still several hundred thousand people who are urgently needed on the labour market.”

Additionally, EU plans for integrating refugees conflict with the Ukrainian government’s desire to eventually return its citizens.

European political leaders are openly stating that defence spending has become a top priority. For instance, in July 2023, German Chancellor Olaf Scholz, advocated for cutting the social programme designed to support families with children in order to balance the federal budget and boost defence spending: “It is essential that we complete this task and do whatever is necessary for the security of our countries by equipping the Bundeswehr and strengthening the NATO alliance. We will do so.”