"The Commission offers a stable and predictable support package for Ukraine for 2023 of up to 18 billion euros" - one of the most discussed headlines this week. On November 9, under this heading, an article was published on the official website of the European Commission that finally announced the intention of the European Union to approve a new aid mechanism for Ukraine for 2023.
What precedes the agreement:
In 2023, Ukraine will receive 1.5 billion euros per month from the European Union. The total amount of financial assistance for the year will be an unprecedented 18 billion euros. This is currently the official proposal of the European Commission. In order for the plan to be approved, according to the rules of EU cooperation, the unanimous approval of the governments of 27 countries, an official decision of the European Parliament and the Council of the EU will be required.
What the assistance plan provides:
If the proposal of the European Commission is approved, Ukraine will receive long-term financing in the form of long-term loans with a high discount. The term of repayment of these loans is up to 35 years, but starting from 2033, so that the country has time to recover. In addition, the percentages of such lending will be covered by EU countries instead of Ukraine.
What are the conditions for providing:
Reforms are the main condition for financial support. The plan that Ukraine must adhere to in order to get closer to EU membership has been defined. Funds can be spent on the following needs:
restoration of critical and important infrastructure;
urgent budgetary expenses (not military), including the payment of pensions;
support for field reconstruction.
A special and loyal financing mechanism for Ukraine, developed and published by the European Commission, will make it possible to make EU aid predictable and guaranteed, independent of the influence of external factors and changes in the decisions of individual countries. After all, the package will be approved once a year and in general. In this way, you will not have to approve each tranche separately.
The message of the European Commission states:
"This stable, regular and predictable financial assistance - an average of 1.5 billion euros per month - will help cover a significant part of Ukraine's short-term financing needs for 2023, which, according to the estimates of the Ukrainian authorities and the International Monetary Fund, amount to 3 to 4 billion euros per month. The support offered by the EU should be backed up by similar efforts from other major donors to cover all of Ukraine's financing needs for 2023."
Such a large-scale financing plan has already been commented on by the Ukrainian government. Prime Minister of Ukraine Denys Shmyhal:
"It is a very important initiative that will support the economic stability of our state and strengthen the foundation of the future victory. The funds will help cover a significant part of the budget deficit, which will amount to 38 billion dollars. We are waiting for a positive decision of the European Parliament and the Council of the EU."
However, we would like to remind you that the proposal of the European Commission will require the unanimous support of the governments of all 27 member states in order to make changes to the EU budget limits. While the decision has not been finally made, the Hungarian government is already trying to block it, promoting its own interests and schemes. This was announced by the representatives of Hungary to the finance ministers of the EU countries at a meeting in Brussels.
The deficit of the budget of Ukraine in 2023 is predicted at the level of up to 5 billion euros per month, in addition to EU aid, financing from other partners will also be needed.
Therefore, we hope for the support of European partners and the superiority of humanity in all countries of the European family.
After all, true strength is in unity. The Ukrainians prove it, the civilized world demonstrates it. So together we will rebuild and renew Ukraine.