Von der Leyen links the disbursements to the reforms and total transformation process that will pave the way for the country’s future entry into the European Union.
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The European Commission has proposed an emergency economic assistance program for Ukraine this Wednesday 9,000 million euros in this courseA line of credit so that the country can meet its most urgent expenses and obligations.
“Ukraine is on the front line and defends European values. We will stand by you during this war and as you rebuild your country., Today we propose to supplement the significant short-term relief provided with new extraordinary macro-financial assistance of up to €9 billion in 2022, President Ursula von der Leyen said after a meeting of the EU’s College of Commissioners.
The G7 finance minister analyzes today’s situation precisely. The Zelensky government has informed that Your economy shows a negative monthly balance about $5,000 million, and the idea is that large economies temporarily cover at least three months, to allow relief, so that the country doesn’t collapse and resist military defence. The International Monetary Fund has estimated the imbalance in Ukraine’s balance of payments at around €14.3 billion during June.
“We have to think about a comprehensive reconstruction effort. The EU has a responsibility and a strategic interest to lead this reconstruction effort. The EU leaders invited us to consider this at their meeting in Versailles and that is what we did. has done. Reconstruction principles should combine investment with reforms And in time, they will support Ukraine in its pursuit of its European path”, the German said. There had already been talk of a mechanism similar to the European Covid Fund, which links disbursements to milestones and reforms. And the President has presented this as a long-term exercise, with past work to be able to enter the EU in the future, when all requirements are met.
“It should be a plan prepared for the future, fully reflecting the needs identified by Ukraine. The plan will address major reforms in areas such as anti-corruptionAdministrative competence, rule of law and independence of the judiciary. And it must be firmly rooted in green and digital transitions and core European values. But, of course, the EU is not and should not be the only one contributing to this effort. therefore We propose a reconstruction platform As part of this plan led jointly by Ukraine and the Commission and brought together EU member states, other bilateral or international donors, international financial institutions and other like-minded partners. The purpose of this forum will be to agree on the direction of travel and to guarantee maximum synergy of all efforts. These investments will help Ukraine become stronger and more resilient to the devastation wrought by Putin’s troops.”
Since the war started, The EU has raised about 4.1 billion euros Von der Leyen’s team states, “Supporting Ukraine’s overall economic, social and financial resilience in the form of macro-financial support, budget support, emergency assistance, crisis response and humanitarian aid”. “Military aid measures have also been provided under the European Peace Fund, worth €1.5 billion, to reimburse member states for military assistance of their kind to Ukraine and to mobilize an additional 500 million.
The Commission proposes to sign off on loans that will be repaid in installments with very long maturities and favorable interest rates, thanks to a guarantee from the Union Budget. For this to be possible, “Member States must agree on the availability of additional guarantees”As it was done so that the commission went to the markets for joint loan issuance for the next generation program after covid.
“An international coordination forum, co-led by the Commission and the Ukrainian Government, will act as an overall strategic governance body, with the support of Ukraine and the administrative capacity and technical assistance to support the reconstruction plan prepared and implemented by Ukraine. Responsible for.” Part of the European Union. It will bring together partners and supporting organizations including EU Member States, other bilateral and multilateral partners and international financial institutions. The Parliament of Ukraine and the European Parliament will participate as observers,” said a statement released today in Brussels. That forum It will select the most suitable destination for the funds and monitor their proper utilization.
“To support the reconstruction plan, the Commission proposes to establish a “RebuildUkraine” mechanism as the main legal instrument for support from the European Union through a combination of transfers and loans. It will be integrated into the EU budget, thus guaranteeing transparency, accountability and sound financial management of the initiative with clear links to investments and reforms. It will build on the experience of the European Union under the Recovery and Resilience Facility, but will be in line with the unprecedented challenges of rebuilding Ukraine and coming with it on its European path. The fund has a specific governance structure that will guarantee full ownership of Ukraine,” the document says, adding that the EU’s focus will be on fighting corruption and guaranteeing the rule of law.
Since 2014 and by the start of the Russian invasion, the EU has already given Ukraine 1,700 million in transfers under the European Neighborhood Instrument, 5,600 million in five loan programs. 194 million euros in humanitarian aid and 355 million euros in foreign policy instruments, Since 2014, the European Investment Bank and the European Bank for Reconstruction and Development have raised over 10 billion euros in loans to Ukraine and, in recent weeks, the EIB has disbursed 668 million euros to the Ukrainian budget.
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