On October 17, the European Parliament supported the proposal to establish a EUR 50 billion Ukraine Facility to support Ukraine over 2024-2027. The decision will now have to be discussed in a trilateral manner between the European Parliament, the Council of the EU and the European Commission, and then submitted to the parliaments of the EU member states.
The Ukraine Facility program should lay the foundation for the rapid recovery and development of the Ukrainian economy. An integral part of the program will also be the Ukraine Plan, for the preparation of which an interagency working group has been set up, headed by the First Deputy Prime Minister and Minister of Economy of Ukraine Yuliia Svyrydenko. The Ukraine Plan will contain a program of priority reforms and key steps to ensure economic development, reconstruction and modernization, as well as to bring Ukraine's accession to the EU closer.
"The European Parliament has supported the European Commission's initiative to create a EUR 50 billion Ukraine Facility. This is an interim decision, but no less important. The next step is to finalize the Ukraine Plan and submit it to the European Commission. We hope that next year, under the Ukraine Facility, Ukraine will have access to EUR 18 billion to help maintain macro-financial stability. I sincerely thank our partners for their consistent support of Ukraine," commented the First Deputy Prime Minister of Ukraine, Minister of Economy of Ukraine Yuliia Svyrydenko.
The majority of the funds (75%) are expected to be allocated to the state budget to ensure macrofinancial stability. The second component of the program (16%) is aimed at creating a special investment instrument to cover risks in priority sectors, which will also be identified in the Ukraine Plan. This will allow to attract more than EUR 30 billion in additional investments. To implement the program, the Working Group is working on a comprehensive document - the Ukraine Plan - a program of actions and specific reforms for the next 4 years aimed at strengthening the economy, in particular through the development of key sectors, European integration, digitalization and regional development.
The Plan is being prepared in close cooperation with representatives of regional and local authorities, NGOs, businesses, experts and think tanks. In addition, the Government holds regular consultations with representatives of the European Union and EU member states.
The Ukraine Facility is part of the ongoing revision of the EU's long-term budget in response to a series of crises that have occurred since 2021. MEPs insist that this instrument should be approved as soon as possible, as part of the overall budget review. It should also be included in the annual budget for 2024, which will be negotiated in November.
