German Chancellor Friedrich Merz announced during a business forum in Berlin the country’s intention, in collaboration with European partners, to launch a large-scale European flagship fund for investments in the reconstruction of Ukraine in 2026. This initiative aims to attract private capital for the implementation of major projects, despite the challenging economic situation.
This is reported by Business • Media
New Financial Instruments to Support Business
Germany’s Minister of Economy, Katrin Reiche, presented a new financial instrument called Ukraine Connect at the forum. Its goal is to support projects for the reconstruction of Ukraine and attract German investments into the Ukrainian economy. Ukrainian Minister of Economy Oleksiy Sobolev emphasized the effectiveness of this mechanism for German companies that are already operating or are planning to expand their activities in Ukraine.
“The Ukraine Connect instrument, which will be implemented through the relevant European institutions, is precisely the mechanism for providing additional capital to German companies seeking to operate in Ukraine. It will allow them to expand their presence, make investments, and will also help the Ukrainian government implement investment programs more effectively. This means we will be able to work together and provide investment incentives to German companies that are already expanding their operations in Ukraine.”
Support for Labor Market Reforms and the JobConnect Program
The Ministries of Economy of Ukraine and Germany also signed a Declaration to support labor market reform. The document outlines joint steps within the new JobConnect program, which aims to develop modern employment services, implement innovative job search and training methods. The program also includes solutions for reintegrating people into the labor market and enhancing their competitiveness, which will contribute to the socio-economic development of Ukraine and support its European integration.
The JobConnect project is funded by the German government and implemented by GIZ GmbH. Starting in 2026, Germany will allocate 10 million euros for this program. These initiatives are expected to provide additional opportunities for the development of the Ukrainian business and labor market, as well as contribute to the country’s recovery.