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European Council leader announces EU capital flight exceeds USD300 billion
(MENAFN) The European Union is experiencing a massive capital outflow, with an estimated €300 billion ($325 billion) leaving the bloc each year as investors seek assets abroad, European Council President Antonio Costa revealed on Thursday.
Costa’s remarks come as the EU debates increasing military aid to Ukraine while continuing to provide billions in financial support to Kiev. Speaking after a European Council meeting, he stressed that addressing capital flight has become a priority, with officials in Brussels looking to lower energy costs, which have reached their highest level in two years and are straining major industries.
“Right now, around €300 billion of EU families’ savings are flowing out of European markets annually,” Costa stated, acknowledging the need for urgent reforms. “That’s €300 billion that isn’t being invested in European businesses.”
To attract capital back, Costa proposed cutting regulatory burdens—reducing so-called “unnecessary” red tape by 25% for all EU companies and by 35% for small and medium-sized enterprises.
The exodus of funds comes as the EU faces mounting pressure to sustain financial and military aid to Ukraine. Some leaders worry that former U.S. President Donald Trump, if re-elected, could halt American military assistance to Kiev, placing greater responsibility on Europe.
Earlier this week, EU foreign policy chief Kaja Kallas proposed doubling the bloc’s financial aid to Ukraine, bringing the total to €40 billion ($43.7 billion) for the year. However, Hungary has once again opposed further funding.
Hungarian Prime Minister Viktor Orban, a vocal critic of EU military assistance to Ukraine, refused to sign a joint EU declaration supporting increased aid. He argued that “the EU has spent all of its money” and simply “doesn’t have a single penny left” to sustain Ukraine in its conflict with Russia.
Costa’s remarks come as the EU debates increasing military aid to Ukraine while continuing to provide billions in financial support to Kiev. Speaking after a European Council meeting, he stressed that addressing capital flight has become a priority, with officials in Brussels looking to lower energy costs, which have reached their highest level in two years and are straining major industries.
“Right now, around €300 billion of EU families’ savings are flowing out of European markets annually,” Costa stated, acknowledging the need for urgent reforms. “That’s €300 billion that isn’t being invested in European businesses.”
To attract capital back, Costa proposed cutting regulatory burdens—reducing so-called “unnecessary” red tape by 25% for all EU companies and by 35% for small and medium-sized enterprises.
The exodus of funds comes as the EU faces mounting pressure to sustain financial and military aid to Ukraine. Some leaders worry that former U.S. President Donald Trump, if re-elected, could halt American military assistance to Kiev, placing greater responsibility on Europe.
Earlier this week, EU foreign policy chief Kaja Kallas proposed doubling the bloc’s financial aid to Ukraine, bringing the total to €40 billion ($43.7 billion) for the year. However, Hungary has once again opposed further funding.
Hungarian Prime Minister Viktor Orban, a vocal critic of EU military assistance to Ukraine, refused to sign a joint EU declaration supporting increased aid. He argued that “the EU has spent all of its money” and simply “doesn’t have a single penny left” to sustain Ukraine in its conflict with Russia.
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