A well-known economist proposes a new kind of “Ukraine tax”: “The aid is not free”

Distinguished economist, former Chief Economist of the International Monetary Fund (IMF) and Robert Solow Professor Olivier Blanchard proposes a new type of tax that would oblige the citizens of EU countries to support Ukraine.

At the same time, he describes Thursday’s EU summit’s decision on a new collective debt to finance Ukraine as a “pretty good” outcome.

“But this was the easy part, there is always a debt issue. I would feel better if the governments would commit to collecting a special “Ukraine aid tax” to finance the interest expenses. Then it would be clear to their citizens that there is a war going on, that Europe is committed and that the aid is not free,” Blanchard writes on social media.

He considers it necessary that the citizens of the EU countries are convinced of the necessity of supporting Ukraine with very concrete means.

“One way is to make it clear to taxpayers that the war must be financed.”

European settlement without the United States

Director of the Italian International Policy Institute IAI, professor at Johns Hopkins University Nathalie Tocci on the other hand, emphasizes that in the future the Europeans will have to cope with supporting Ukraine and the continuation of Russia’s war of aggression without the United States.

He reminds that Italy’s negative position at the summit on Thursday was the decisive reason why the funds frozen from Russia were not used.

“Narrow nationalism and cowardice prevented the use of frozen funds. The critical mass still stands by Ukraine, but I expect more collective action outside the EU as the enemies within it increase,” he writes on social media.