Italy’s private sector joins Ukraine’s reconstruction game

Leading politicians, businesses and trade associations from Italy and Ukraine spoke about the war-torn country’s reconstruction in Rome on Wednesday.

The idea behind the event is not to wait for the cessation of hostilities in Ukraine but to act now to rebuild the country through public and private investment.

“Dear Italy. Thank you for organising this conference to support and rebuild Ukraine (&#8230😉 We are all together in the desire for freedom, security, well-being for our parents, for our children, for our cities and our countries”, President Volodymyr Zelenskyy said during his video address.

Italy has been pro-Ukraine, pro-US and pro-NATO since the start of the war, with Prime Minister Giorgia Meloni (Fratelli d’Italia/Ecr) making the country’s position clear since taking office in government.

“Talking about Ukraine’s reconstruction means betting on victory and an end to the conflict, and I am sure that Ukraine’s future will be one of peace, prosperity and increasingly European”, said Meloni, who is pushing for a diplomatic solution to the conflict as long as this does not involve Ukraine’s surrender to Russia.

“Italy will continue to do its 360-degree part in support of Ukraine on a political, military, humanitarian and also reconstruction level for some strategic infrastructure in the liberated areas and especially for tomorrow”, she added.

Italy’s prime minister also reiterated her call on EU institutions to speed up the process of Ukraine’s accession to the European Union. This was also echoed by President Sergio Mattarella, who, in a meeting with Ukrainian Prime Minister Denys Shmyhal, confirmed his full support for EU accession “as soon as possible”.

“Investing in the reconstruction of Ukraine is not foolhardy but one of the most prudent and far-sighted investments that can be made in this time”, stressed Meloni, recalling that in 2024 Italy will have “an increasingly central role” since it will take the G7 rotating presidency.

Confirming her commitment to Ukraine, Meloni also nominated Italy to host the Ukraine Recovery Conference in 2025.

“Italy was key in supporting Ukraine for EU accession. We will remember that”, said Shmylal, while Foreign Minister Dmytro Kuleba highlighted how contacts between the Italian and Ukrainian governments are “more dynamic than ever”.

On the Italian side, Foreign Minister and Deputy Prime Minister Antonio Tajani (Forza Italia/Epp) said Italy wants to be at the forefront, lay the groundwork for reconstruction, and spend in international forums to make Russia pay for “the destruction it has caused”.

Bringing in the private sector

Some 600 Italian companies were present at the event and were called to share their expertise with their Ukrainian counterparts.

The Italian government’s idea is to involve private entities as much as possible in this preliminary phase to be ahead of the game when reconstruction begins. To protect businesses, however, Kyiv must pursue reforms to ensure legality and transparency.

According to European Investment Bank (EIB) Vice President Gelsomina Vigliotti, $14 billion is needed for Ukraine’s most urgent priorities in 2023.

“We need to focus on investments that cannot wait until the end of the war. We need to address these needs now, supporting the economy to avoid further losses and damage, ” Vigliotti said.

So far, the EIB has provided €2 billion worth in utilities and infrastructure projects such as hospitals and educational facilities and said it is ready to support Italian partners willing to invest in reconstruction.

“There will be roads and railways to be put back in place, action on drinking water, sewage systems and resources to ensure the growth of the private sector. We need to ensure a continuous flow through Ukraine”, the EIB vice president added.

Economy Minister Giancarlo Giorgetti (Lega/ID) also announced Italy’s contribution of €100 million to the EIB’s EUfor Ukraine guarantee fund.

(Federica Pascale | EURACTIV.it)