Investors are pulling their money out of the bloc amid soaring energy prices and excessive red tape, according to Antonio Costa

Capital outflow from the EU has reached €300 billion ($325 billion) annually as retail and institutional investors move their money into assets outside the region, European Council President Antonio Costa has announced.

The statement comes as the bloc is considering doubling its military aid to Ukraine and continues to pledge billions of euros in financial assistance to Kiev.

Speaking to reporters following the EC meeting on Thursday, Costa said that officials in Brussels are seeking to avoid capital flight by reducing energy costs that have already soared to their highest level in two years, hitting major industries and companies.

"As of today, around €300 billion of EU families' savings flow out of European Union markets each year," Costa said, acknowledging that business as usual is no longer an option for the bloc. "There is €300 billion that don't fund businesses in the European Union."

Among the steps aimed at luring investors back to the bloc, Costa mentioned slashing what Brussels calls "unnecessary" red tape by 25% for all EU companies and by 35% for small and medium-sized businesses.

The multibillion-dollar capital outflow comes at a time when the EU is pushing to maintain funding for Ukraine. The effort is driven by growing concerns in Brussels that US President Donald Trump could stop the flow of American arms to the government of Vladimir Zelensky.

Earlier this week, EU foreign policy chief Kaja Kallas proposed a hawkish plan that would double the bloc's cashflow to Kiev for the year, making it €40 billion ($43.7 billion).

On Thursday, Hungary, which has long been critical of EU military assistance to Ukraine, refused to sign a joint EU communique calling for increased funding for Kiev.

Hungarian Prime Minister Victor Orban said that the EU is broke, as it has spent "all of its money" and realistically "doesn't have a single penny left" to support Ukraine amid its conflict with Russia.

(RT.com)