EU Approves €50 Billion Aid For Ukraine
- 1.02.2024, 13:55
All 27 EU leaders supported the decision.
The leaders of the European Union today, February 1, during the summit approved the 50 billion euro aid for Ukraine within the framework of the Ukraine Facility program.
RBC-Ukraine reported citing the statement by President of the European Council Charles Michel on Twitter.
“We have a deal. All 27 leaders agreed on an additional €50 billion support package for Ukraine within the EU budget. This locks in steadfast, long-term, predictable funding for Ukraine. The EU is taking leadership and responsibility in support for Ukraine,” Michel wrote.
He added that the EU assumes leadership and responsibility for supporting Ukraine.
"We know what is at stake," Charles Miche wrote.
€50 billion for Ukraine and Hungary's veto: backstory
Recall that in mid-December 2023, EU leaders gathered for a summit and approved the start of negotiations on Ukraine's accession to the EU. In addition, they considered allocating 50 billion euros to Kyiv for 4 years within the framework of the Ukraine Facility program. However, a positive decision on financing could not be reached due to Hungary's veto. European leaders decided to postpone this issue to February 1, 2024.
Since the 50 billion aid for Ukraine needs a consensus among all members of the European Council, the Hungarian side took the opportunity to put forward different conditions after which it is "ready to approve it". Prime Minister of Hungary Viktor Orbán proposed to separate financial assistance to Ukraine from the EU budget, to make it a separate "mechanism" so that parts of the 50 billion euro package would need annual approval.
But on the eve of the media learned that EU leaders can bypass Hungary's veto. Reuters, citing the latest version of the summit results, wrote that European leaders will propose an annual debate on the assistance package for Ukraine. This, as noted by the publication, may prevent Budapest from vetoing the money.
What is the Ukraine Facility Program
In June, the European Commission proposed to increase the EU budget for the next four years by 66 billion euros, of which 50 billion (within the framework of the Ukraine Facility) are provided for financial support to Ukraine. This initiative was supported by the European Parliament.
The Ukraine Facility program provides for the allocation of up to 50 billion euros for the period 2024-2027. This program will support macro-financial stability, recovery, and modernization efforts while implementing key reforms on Ukraine's path to EU accession. As well as the transition to a green, digital and inclusive economy, which is gradually brought into line with the rules and standards of the European Union.
Earlier it was reported that the assistance package to Ukraine for 50 billion euros - Ukraine Facility - will consist of 17 billion euros of grants and 33 billion euros of loans. President of the European Commission
Ursula Gertrud von der Leyen said that it was planned to cover up to 45% of all Ukraine's funding needs until 2027.