On Friday 28 May, the European Commission presented its comprehensive plan of economic support for Belarus, if it takes the path of democracy. This plan, which would be a mix of grants and loans, could reach €3 billion, mobilising public and private investments.
“The EU will activate this plan once Belarus embarks on a democratic transition. We think that this can be an incentive”, explained the institution's spokesperson, Ana Pisonero. She added that the President of the European Commission had written to Svetlana Tikhanovskaya, the leader of the Belarusian opposition, to “express her respect and admiration for the courage and strength of the Belarusian people”.
The aim of the plan is to help the country stabilise its economy, reform its institutions to make them more democratic and help increase the economy’s resilience, growth potential and job creation.
In particular, the Commission is ready to organise an EU-Belarus High Level Investment Forum to expand investment and trade opportunities and an EU High Level Donor Meeting to raise additional EU grant resources required to finance and mobilise EU expertise and investments to support the economic transition. Through these initiatives, the EU hopes to mobilise up to €1.5 billion in European loans as well as public and private investment.
The Commission will also mobilise a Transition Package of up to €400 million in grant assistance under the Neighbourhood, Development and International Cooperation (NCIDI) to support the democratic transition and address key structural reforms.
Finally, in partnership with international financial institutions, the EU expects to mobilise up to €100 million in grant funding to leverage up to €1 billion of key public and private investments supporting the country’s green and digital transformation, connectivity and access to finance for Belarusian SMEs.
The European Commission will give priority to five flagship investments. The aim is to support an innovative and competitive economy, including direct support to 20,000 SMEs (up to €350 million), to improve transport connectivity and facilitate trade at the EU-Belarus borders (up to €200 million) and to boost innovation and digital transformation, including through an Eastern Partnership IT school in Minsk (up to €20 million).
Support for a ‘green’ Belarus, including through support for energy efficiency, waste management and infrastructure (up to €200 million) and investment in a “democratic, transparent and accountable Belarus” ( up to €100 million) are the other priorities.
In addition to this plan, the Commission will offer to conclude a bilateral framework agreement in order to reinforce the longer-term relations between the EU and a democratic Belarus. (Original version in French by Camille-Cerise Gessant)