Societe Generale: EU aid to Ukraine may depend on Germany's debt brake reform

Jinshi Data, November 11th News, Analysts at Societe Generale emphasized in a report that a key issue for the European Union after Trump’s election victory is the prospect of providing funding to Ukraine. They stated that if the Trump administration stops providing funding and weapons to Ukraine, the EU will have to raise an additional €60 billion per year on top of the €35 billion already spent. Filling this gap will depend on the extent to which Germany is open to loose fiscal policies, which means reforming debt brake rules or creating another budgetary foreign defense fund. Analysts pointed out that this would be difficult to achieve given the deepening political divisions. In addition, they added that for the EU, most of the additional support funds would flow directly to the U.S. defense industry.