EBRD head calls for European solidarity with Ukraine

In a speech given by European Bank of Reconstruction and Development (EBRD) President Thomas Mirow at the London School of Economics, 10 March, Mirow called on European solidarity for Ukraine to prevent it turning into a “no man’s land”. Specifically he said West European states should not restrict their domestic banks from using financial support they receive to assist subsidiaries in Eastern Europe.

Mirow called Ukraine EBRD’s “biggest concern,” where “an inherently instable political situation only exacerbates a grave economic situation.” The ERBRD president called on Ukrainian decision-makers “to honour their commitments” saying the problem was “not only about much-needed finance, but also about restoring trust in the country.”

He said however he was encouraged by the recent declarations of unity among Ukrainian politicians, the appointment of a new vice prime minister in charge of crisis management and the imminent return to Kiev of an IMF delegation.

Mirow argued Ukraine was “a test case for international solidarity,” and called for West European states to allow funds channelled to their domestic banks to also flow to their subsidiaries in Eastern Europe.

“As a signal of European solidarity but also of economic sense we endorse the view taken at last week’s EU Summit that in providing support to their own banks, west European countries must not prevent those funds being used to help their subsidiaries in eastern Europe,” Mirow said.

“The stability of Ukraine is of crucial importance for the future of all Europe. Many scholars hold that the modern name Ukraine is derived from “ukraina” in the sense of “borderland, frontier region”. We must not allow it to become a no-man’s land,” he concluded.

Graham Stack for business new europe (www.businessneweurope.eu)