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Friday, June 14, 2024

European Parliament supports €50B Ukraine Fund

The European Parliament (EP) has adopted a resolution with a majority vote in favor of the European Commission’s (EC) proposals for amending the EU’s 2021-2027 multiannual budget. These revisions notably include establishing a special EUR 50 billion Ukraine Fund to financially assist Ukraine during the ongoing conflict and its post-war recovery. The vote took place during a plenary session of the EP in Strasbourg, with 393 deputies supporting the resolution, 136 opposing it, and 92 European politicians abstaining.

The EP’s resolution underlines the importance of focusing the budget review on addressing the multifaceted repercussions of Russia’s aggressive war against Ukraine. It emphasizes the need to strengthen the EU’s open strategic autonomy, safeguard its sovereignty, and enhance its flexibility to respond to crises.

The resolution includes a dedicated section outlining the long-term support for Ukraine. The EP expresses approval of the EC’s proposal for a structural solution to meet Ukraine’s financial requirements, closely tied to the EU budget. This support encompasses macro-financial stability, investment climate improvement, financing for medium- and long-term recovery and reconstruction, implementation of EU accession-related reforms, and developing administrative capabilities in Ukraine.

Furthermore, the EP stresses that this long-term instrument is essential to attract additional donors and ensure effective, targeted spending for Ukraine and its citizens. MEPs insist on the swift adoption of the Ukraine Fund within the EU’s multiannual budget immediately after finalizing the Multiannual Financial Framework (MFF).

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European politicians advocate for flexibility within the Ukrainian Fund, considering the uncertainty surrounding the situation in Ukraine. In this context, they welcome the creation of a Ukrainian Reserve, as proposed by the EC, which can be activated by EU budgetary bodies, including the EP, to address Ukraine’s urgent needs.

The EP places significant emphasis on upholding the rule of law and safeguarding the EU’s financial interests to prevent, detect, and rectify corruption, conflicts of interest, and other irregularities in using EU funds in Ukraine. This Ukrainian fund should include transparent provisions and safeguards to achieve these objectives.

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MEPs recall the EU’s unwavering support for Ukraine since the outset of the Russian invasion, emphasizing the EU’s commitment to standing in solidarity with the Ukrainian people in their fight for democracy and against Russian authoritarianism. The EU has already provided over EUR 30 billion in financial support to Ukraine during the conflict and will continue to play a central role in supporting Ukraine’s path to EU membership.

It is worth noting that since Russia’s aggression against Ukraine began, the EU has delivered substantial financial, economic, humanitarian, and military assistance amounting to over EUR 81 billion. The Ukraine Fund, to be established as part of the EU’s 2024-2027 multiannual budget, will contribute up to EUR 50 billion in direct budgetary support to Ukraine. This funding will aid in implementing reforms and creating an attractive investment environment to encourage private investment in Ukraine’s recovery efforts.

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