Where is Europe finding the money to host millions of Ukrainian refugees?

An estimated 6 million Ukrainian refugees have fled across the border to neighbouring European countries since the beginning of Russia's war.

In this episode of Real Economy, we visit Romania to see how the country is dealing with the huge influx of Ukrainian refugees and speak to Romania's Education Minister about how they are helping refugee children continue their education.

We also take a look at which EU funds are helping member states deal with the cost of this humanitarian emergency and ask are they enough?

In an historic move, the EU has given people fleeing the war in Ukraine the right to live and work across the European Union for up to three years.

To help EU governments, the EU has freed up several billions in unused money for Europe’s regions. Known as the Cohesion Fund, it includes finance from the European Social Fund and FEAD, the European Fund set up to help the most deprived. These billions can now be spent on emergency help for Ukrainian refugees.

The money can be spent on items such as temporary accommodation, food, blankets and clothing as well as services including psychological counselling, medical care and education. National governments can claim back money already spent since the beginning of the war.

In addition, €10 billion of pandemic recovery funds known as REACT-EU is available. €3.5 billion has already been paid out to member states, with countries hosting the most refugees receiving the largest share of this.

Real Economy's Naomi Lloyd asked the European Commission’s Director General of Employment, Social Affairs and Inclusion, Joost Korte why the funding was money reallocated from other budgets, rather than fresh EU money to help cope with this crisis.

“The seven-year budget that started in 2021