The European Parliament and the Council of the European Union have reached preliminary agreement on a new mechanism to support Ukraine through the creation of a Ukraine Fund worth 50 billion euros in the EU budget.
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The fund will combine EU budgetary support into a single instrument that will provide assistance for the period 2024-2027. Belgian Finance Minister Vincent van Peteghem stressed that this mechanism will allow Europeans to provide consistent and intended support to Ukraine. This was reported on the website of the Council of the European Union.
It is noted that the support mechanism in Ukraine is structured according to three components: The government will develop a special plan that will define intentions for the restoration, rehabilitation and modernization of the country, and will also contain plans for reforms as part of the EU accession process. Financial support in the form of grants and loans for Ukraine will be provided based on the implementation of this plan, subject to the necessary conditions and time schedule of payments.
In turn, Brussels will provide support in the form of budget guarantees and will combine grants and loans from public and private institutions.
The third component assumes that financial support will encourage Ukraine to make legislation consistent with EU legislation, as well as to carry out structural reforms on the path to EU membership in the future.
As is known, the preliminary agreement reached between the European Parliament and the Council of the EU determines the financial aspects in the context of the creation of the Ukrainian Fund. The fund’s total budget of 50 billion euros will be distributed as follows: 33 billion euros will be provided in loans, and 17 billion UAH in grants.
Let us recall that on February 1, the head of the European Council, Charles Michel, said that the leaders of the European Union countries agreed on an additional support package for Ukraine worth 50 billion euros.
Source: Racurs
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