Michel – Von-der-Leyen – Photo © European Union 2024
(BRUSSELS) – EU leaders at a special summit Thursday agreed to set up a Ukraine aid facility worth EUR 50 billion for 2024-2027, confirming Europe’s commitment to support the country’s fight for its freedom.
“We all know that Ukraine is fighting for us,” said the Commission president Ursula von der Leyen: “So we will support them with the necessary funding and provide them with the much-needed predictability they deserve. These EUR 50 billion for four years also send a very strong message to Putin, just ahead of the second anniversary of his brutal invasion.”
The Ukraine facility is a new EU instrument to help the country in its recovery, reconstruction and modernisation on its path towards EU accession.
Of the total 50 billion available, 33 billion are in loans, and 17 billion are in grants (under a new thematic instrument, known as the Ukraine Reserve).
In the summit conclusions, the leaders say that to ensure Ukraine’s ownership of its recovery and reconstruction, the Ukrainian government needs to prepare a plan that sets out a reform and investment agenda.
To obtain the funding, Ukraine will also have to uphold and respect democratic mechanisms, including a multi-party parliamentary system; the rule of law and human rights, including the rights of persons belonging to minorities.
In addition, the Commission and Ukraine need to protect the EU’s financial interests, particularly by countering fraud, corruption and conflicts of interest.
The EU Council will play a key role in the governance of the Ukraine Facility and the European Council will hold a debate every year on the implementation of the facility, on the basis of a Commission report. If necessary, in two years’ time the European Council will invite the Commission to make a proposal for a review in the context of the next MFF.
At the summit, the leaders also agreed a mid-term revision of the EU’s long-term budget 2021-2027. This will provide additional funding of 64.6 billion for a limited number of priority areas through a mix of new and existing funds. The additional funding covers support for Ukraine, migration and the external dimension, the strategic technologies for Europe platform (STEP), Next Generation EU interest payments, special instruments, new own resources and elements that reduce the impact on national budgets.
