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European Parliament votes to support $53 billion financial package for Ukraine’s recovery

European Parliament votes to support $53 billion financial package for Ukraine's recovery

The European Parliament has voted to support Ukraine’s recovery with a $53 billion financial package. The funding package is designed to support Ukraine’s “recovery, reconstruction, and modernization” starting in 2024, with a total worth of 50 billion euros, equivalent to $52.8 billion. This financing proposal, known as the Ukraine Facility, received strong support during the parliamentary vote, with 512 Members of the European Parliament (MEPs) in favor, 45 against, and 63 abstaining from the vote.

The Ukraine Facility is intended to become part of EU’s long-term budget, strained by crises since 2021. The funding package’s adoption and the EU budget revision will be subject to a vote in the coming months.

Supporting Ukraine’s Reconstruction and Reform

In June 2023, the European Commission initially unveiled the plans for the Ukraine Facility. The primary goal is to finance Kyiv’s immediate needs and essential reconstruction via grants, loans, and guarantees.. The proposal was presented ahead of the June 22 Ukraine Recovery Conference in London, focusing on assisting Ukraine’s reconstruction.

This financial initiative is expected to be funded by EU member states, covers 2024-2027 and supports Ukraine’s reconstruction efforts. However, access to this support is contingent on the Ukrainian government implementing vital reforms aligned with its EU accession journey, as outlined by the European Commission.

These vital reforms emphasize public administration, governance, rule of law, anti-corruption efforts, and sound financial management. Notably, European leaders took a historic step on June 23, 2022, by granting Ukraine candidate status on its path toward eventual EU membership. While no specific timeline has been set for the accession process, it is anticipated to be a multi-year undertaking.

On September 26, Prime Minister Denys Shmyhal announced Ukraine fulfilled all seven EU accession talk requirements. Ukrainian Foreign Minister Dmytro Kuleba was optimistic, citing the momentum gained from ongoing reforms in the accession process.

This funding package will significantly boost Ukraine’s recovery, rebuilding, and modernization efforts. The EU’s support signals commitment to Ukraine’s development, pending the nation’s continued reform efforts for accession talks.

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