Capital flight from EU surpasses $300 billion, says European Council president
Investors are withdrawing their funds from the EU as energy prices rise sharply and bureaucratic hurdles increase, according to European Council President Antonio Costa. Costa revealed that capital outflow from the EU has escalated to €300...
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Investors are withdrawing their funds from the EU as energy prices rise sharply and bureaucratic hurdles increase, according to European Council President Antonio Costa.
Costa revealed that capital outflow from the EU has escalated to €300 billion annually, with both retail and institutional investors reallocating their money into assets beyond the region.
This announcement coincides with the EU's consideration of a significant increase in military aid to Ukraine, alongside ongoing commitments of billions of euros in financial support to the country.
In remarks to the media after an EC meeting on Thursday, Costa indicated that EU officials are focused on preventing further capital flight by addressing energy costs, which have surged to their highest levels in two years, adversely impacting key industries and businesses.
“As of today, around €300 billion of EU families’ savings flow out of European Union markets each year,” he explained, noting that the current approach is no longer viable for the bloc. “There is €300 billion that don’t fund businesses in the European Union.”
To attract investors back, Costa highlighted efforts to reduce regulatory burdens, with plans to cut “unnecessary” red tape by 25% for all EU companies and by 35% for small and medium-sized enterprises.
This significant capital outflow occurs as the EU strives to sustain its financial backing for Ukraine, driven by fears that U.S. President Donald Trump might halt American arms assistance to the government of Vladimir Zelensky.
Earlier this week, EU foreign policy chief Kaja Kallas proposed a bold initiative to double the bloc’s financial support to Ukraine for the year to €40 billion.
However, on Thursday, Hungary, which has consistently criticized EU military support for Ukraine, declined to endorse a joint EU communique advocating for increased funding for Kiev. Hungarian Prime Minister Victor Orban remarked that the EU is in a difficult financial position, claiming it has exhausted its funds and no longer has any resources to assist Ukraine amid its ongoing conflict with Russia.
Ramin Sohrabi for TROIB News
Costa revealed that capital outflow from the EU has escalated to €300 billion annually, with both retail and institutional investors reallocating their money into assets beyond the region.
This announcement coincides with the EU's consideration of a significant increase in military aid to Ukraine, alongside ongoing commitments of billions of euros in financial support to the country.
In remarks to the media after an EC meeting on Thursday, Costa indicated that EU officials are focused on preventing further capital flight by addressing energy costs, which have surged to their highest levels in two years, adversely impacting key industries and businesses.
“As of today, around €300 billion of EU families’ savings flow out of European Union markets each year,” he explained, noting that the current approach is no longer viable for the bloc. “There is €300 billion that don’t fund businesses in the European Union.”
To attract investors back, Costa highlighted efforts to reduce regulatory burdens, with plans to cut “unnecessary” red tape by 25% for all EU companies and by 35% for small and medium-sized enterprises.
This significant capital outflow occurs as the EU strives to sustain its financial backing for Ukraine, driven by fears that U.S. President Donald Trump might halt American arms assistance to the government of Vladimir Zelensky.
Earlier this week, EU foreign policy chief Kaja Kallas proposed a bold initiative to double the bloc’s financial support to Ukraine for the year to €40 billion.
However, on Thursday, Hungary, which has consistently criticized EU military support for Ukraine, declined to endorse a joint EU communique advocating for increased funding for Kiev. Hungarian Prime Minister Victor Orban remarked that the EU is in a difficult financial position, claiming it has exhausted its funds and no longer has any resources to assist Ukraine amid its ongoing conflict with Russia.
Ramin Sohrabi for TROIB News
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