On Thursday 5 October, the European Parliament’s Budgets and Foreign Affairs Committees approved by a large majority (86 votes in favour, 6 against, 2 abstentions) the proposal to stabilise the European Union’s macro-financial assistance to Ukraine at €50 billion, two-thirds of which in preferential loans, over the period 2024-2027 (see EUROPE 13239/3).
MEPs are calling for this package of aid and measures to help rebuild Ukraine by bringing it up to EU standards to be adopted as soon as possible as part of the mid-term review of the 2021-2027 multiannual financial framework (see EUROPE 13267/3).
“The Ukraine Facility combines the processes of reconstruction and the EU accession”, confirmed co-rapporteur Michael Gahler (EPP, German).
The Ukrainian authorities will have to draw up a plan detailing the investments and reforms they will implement in exchange for the financial aid. According to MEPs, this multiannual plan should be drawn up in consultation with the Verkhovna Rada and ratified by means of a delegated act from the Commission, which would give the European Parliament a right of scrutiny.
Provisions to combat fraud, corruption, conflicts of interest and irregularities in the use of European funds in Ukraine have been strengthened. Companies under oligarchic influence will not be able to benefit from funding, the two parliamentary committees stress in the European Parliament press release. In addition, the assets of the Russian Federation and those of other entities or individuals directly linked to Russian aggression will have to be mobilised to rebuild Ukraine.
In order to increase transparency in the implementation of the Ukraine Facility, MEPs call for the creation of an Internet portal on financial operations and the various stages in the disbursement of aid. They also want contributions received from third countries and international organisations to be made public.
The vote during the European Parliament plenary session will take place in the week beginning Monday 16 October.
On Wednesday, the European Court of Auditors reiterated the “considerable risks” for future EU budgets represented by the financial technique (using the margin between commitment and payment appropriations in the EU budget) to guarantee loans to be granted to Ukraine (see EUROPE 13069/2). It recommends that robust mechanisms for monitoring and controlling financial flows be put in place, including the development of detailed criteria for determining that Ukraine is fulfilling its commitments, along the lines of what has been put in place with the NDICI instrument for financing external aid. And to advocate a role for itself in auditing the use of European funding.
See the opinion of the Court of Auditors: https://aeur.eu/f/8ww (Original version in French by Mathieu Bion, with Camille-Cerise Gessant)