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| The EU may have to allocate around 186 billion euros ($195 billion) to Ukraine in the seven years after its accession. (Source: Intelli News) |
According to the Financial Times , Kiev will benefit from a payment of 96.5 billion euros ($101 billion) from the EU's common agricultural policy mechanism.
The country will also be eligible for 61 billion euros ($64 billion) in grants from the bloc's cohesion funds, dedicated to improving infrastructure in poorer member states.
In total, the EU could have to allocate around 186 billion euros ($195 billion) to Ukraine over the seven years after accession.
The article notes that this will have a major impact on the bloc's agricultural subsidy regime. According to calculations, Ukraine has 41.1 million hectares of agricultural land in use and will become the largest recipient of subsidies in the bloc.
This would force the EU to cut payments to current recipients by around 20.3% per hectare of agricultural land.
The European Council's calculations are based on research into the simultaneous admission of nine new members to the EU: Ukraine, Moldova, Georgia and six Western Balkan countries.
The cost of adding all of this to the EU's current budget would amount to around €256 billion ($269 billion), according to the analysis.
The study warns that the accession of new members will lead to a drastic reallocation of resources within the union. For example, the Czech Republic, Estonia, Lithuania, Slovenia, Cyprus and Malta will no longer be eligible for cohesion funds.
“All member states will have to pay more and receive less from the EU budget; many member states that are currently net recipients will become net contributors,” the document states.
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