EU unveils €20bn eastinvest plan for eastern border

2026-02-26 - 23:22

The European Union will channel €20 billion into eastern border regions through a new EastInvest initiative aimed at offsetting the economic fallout of the Ukraine war. European Commission President Ursula von der Leyen said the package combines major public and private funding streams to stimulate growth, strengthen security and generate employment across the EU’s eastern flank. Targeted economic stimulus for border regions Speaking at the Eastern Border Regions High-Level Conference, Ursula von der Leyen detailed the scope of the €20 billion ($23 billion) EastInvest mechanism. The program is designed to unlock economic potential in communities bordering Ukraine that have faced prolonged disruption since the outbreak of the Russia-Ukraine war. Von der Leyen underlined that these regions possess untapped resources, including forestry assets, a robust agricultural base and access to critical raw materials essential for Europe’s industrial supply chains. “We need investment in these regions and the border regions have significant assets,” she said, noting that the initiative seeks to translate those advantages into sustainable growth and employment. Blending public and private capital The EastInvest framework will draw on financing from leading European institutions, including the European Investment Bank and the European Bank for Reconstruction and Development. National promotional banks and private lenders are also expected to participate, creating a blended finance model intended to scale up infrastructure and development projects. According to von der Leyen, priority sectors include renewable energy, agriculture and forestry—areas seen as strategically important for both economic resilience and the EU’s green transition goals. Security and defense dimension Beyond economic recovery, the European Commission signaled a parallel expansion of defense-related spending along the eastern frontier. Von der Leyen highlighted increased allocations for military mobility, as well as support for the Drone Defense Initiative and the Eastern Flank Watch program. “We all know communities and economies need security and they need stability to thrive,” she said, stressing that safeguarding the EU’s eastern borders is integral to Europe-wide stability. She added that funding for rapid troop and equipment deployment would be expanded, with border security budgets set to triple where necessary. The announcement reflects the EU’s broader strategy to reinforce its eastern flank in response to the ongoing Ukraine conflict, combining economic investment with enhanced security measures to strengthen regional resilience.