By Marc Jones

BRUSSELS, (Reuters) – A high-ranking European official has endorsed a multitrillion-euro ‘Marshall’ plan to rebuild Ukraine. He pledged the support of the EU’s lending arm and urged the EU’s financial sector to help in what he called a worldwide rescue operation.

The president of European Investment Bank Werner Hoyer stated that Europe cannot be allowed to pay the enormous bill he forecasted could exceed the trillions.

The Marshall Plan was a post-World War Two U.S. program that provided Europe with the current equivalent of $200 billion in technical and economic assistance over four years.

Hoyer spoke out to Reuters about the necessity for a program similar for Ukraine. He said that recent discussions at the United Nations, International Monetary Fund, and World Bank had discussed the costs of reconstruction in the country.

What will it take to rebuild and reconstruct Ukraine?” There were many figures floating around in the room, but I saw one thing: we aren’t talking about millions. We are talking trillions.” Hoyer said. He was a former German Foreign Office Minister under Helmut Kohl after the fall of Berlin Wall.

Hoyer’s comments highlight how Europe is prepared to deal with the growing economic consequences of war using the power of the pan-national European Investment Bank which usually funds infrastructure such as roads or bridges.

Hoyer, one the top-ranking officials of Germany in the European Union said that “It is a challenge to the whole free world make sure this (support will be provided)”

Hoyer stated that political leaders should make a decision as quickly as possible. But I believe we must have a structure which targets a worldwide audience, not only the European Union taxpayers.

It is taking place in the context of fighting for Ukraine as well as a heated standoff between Moscow, Brussels and Moscow. Brussels has been supporting tough sanctions against Russia.

Russian President Vladimir Putin said to his military at a parade that he was fighting for Russia, but gave no indications of how long they would be targeting Ukraine. The Kremlin describes the operation as a special military operation.

SerhiyMarchenko, Ukraine’s Finance Minister, stated earlier in the day that the country’s economic growth is likely to be almost half by the end of this year.

The central bank of Ukraine estimates that a third have stopped making any production for now, and the United Nations says nearly six million people (roughly 13%) have fled.

Economic Policy Research (a network of economists) estimates that Ukraine needs to be rehabilitated at a cost between 500 billion and 600 billion euros. This is more than triple the annual output of the nation before war.

Hoyer predicts that this will continue to rise.

GUARANTEES

Hoyer stated that the West’s state-sponsored large banks will provide guarantees that the government of Ukraine would be financially sound after the war is over.

That should enable Kyiv to gain access to the global lending markets again, as Iraq did after its second Gulf War. This will help speed up reconstruction.

    “If we want to entice the investor community to give us their money … then we need to give them reassurances,” Hoyer said, referring to guarantees against heavy losses for investors.

“I believe that capital markets are open for this.”

($1 = 0.9472 euros)