In their draft report on ‘Ukraine Facility’, which will be discussed on Wednesday 30 August by the European Parliament’s Committee on Foreign Affairs and Committee on Budgets, Michael Gahler (EPP, German) and Eider Gardiazabal Rubial (S&D, Spanish) suggest that it should be up to the European Commission to adopt, by means of a delegated act, the plan in which Ukraine will detail its programme of reforms and investments to be supported financially by the European Union.
Inspired by the procedure followed for the approval of post-Covid-19 national recovery plans, the initial proposal grants the power of final decision to the EU Council, on a proposal from the Commission (see EUROPE 13205/9).
The draft report by Gahler/Gardiazabal Rubial does not fundamentally alter the operation or objectives of the future Facility, which is intended to stabilise EU financial support for Ukraine at €50 billion over the period 2024-2027.
In particular, MEPs recommend an indicative breakdown of available resources that is barely different to the initial proposal. Therefore, 75% of the resources would be allocated to the Ukrainian reform and investment plan (78% according to the Commission’s proposal), 16% to the investment framework, for which the EU will provide a budget guarantee, and 8% to the costs of gradual alignment with the acquis communautaire (5% according to the initial proposal).
The co-rapporteurs stress the importance of treating the European Parliament and the Council of the EU on an equal footing when it comes to exchanging information on the implementation of the Ukraine Facility.
A number of provisions have also been added to increase transparency throughout the lifespan of the Facility: - creation of a single webportal; - communication on the financial operations linked to the global loan granted to Ukraine; - communication of the objectives and intermediate milestones on which the disbursement of a tranche of aid depends; - publication of information on contributions from third countries and/or international organisations; - holding regular dialogues at the European Parliament on the reconstruction of Ukraine.
Mr Gahler and Ms Gardiazabal Rubial also stress the importance of Russia - and Belarus - helping to finance the reconstruction of Ukraine, in particular by mobilising public assets confiscated as part of the European sanctions adopted in response to the Russian military invasion of Ukrainian territory. They therefore introduce a legal mechanism that would allow these assets to be added to the resources allocated to the Ukraine Facility in the form of ‘external assigned revenue’.
Lastly, the European Parliament would like to be a member of the operational board that will assist the Commission in implementing the investment framework, which is part of the Ukraine Facility and is financed by a budget guarantee and support from external parties.
See the draft report: https://aeur.eu/f/8cu (Original version in French by Mathieu Bion)