Brussels (Brussels Morning) – EU Commission approves Ukraine Plan, enabling up to €50 billion in assistance, endorsing reforms and investments to bolster Ukraine’s economy and democratic mechanisms.
The European Commission has adopted a proposal for a Council Implementing Decision that evaluates positively the Ukraine Plan, Ukraine’s extensive reform and investment strategy for the next four years. This crucial step paves the way for regular and predictable backing to Ukraine under the EU’s up to €50 billion Ukraine Facility. Support under the Facility will assist Ukraine in keeping its administration running, paying salaries and pensions, providing basic public services, and supporting recovery and reconstruction while it persists in defending itself against Russia’s aggression.
According to the Press of the European Commission, the payments will be spent subject to the implementation of the consented reform and investment steps set out in the annexe of the Council Implementing Decision. In addition, financial aid under the Ukraine Plan will be made unrestricted under the precondition that Ukraine persists to uphold and respect effective democratic mechanisms.
Does Ukraine Meet Reform Criteria?
The Commission’s assessment of the Ukraine Plan is established on the criteria specified by the Ukraine Facility Regulation. In particular, the Commission evaluated whether the Ukraine Plan comprises a targeted and well-balanced reaction to the objectives of the Ukraine Facility, whether it manages the challenges of Ukraine’s accession track, and whether it reacts to Ukraine’s recovery, reconstruction and modernisation needs.
Will EU Backing Propel Ukraine’s Progress?
According to the Commission’s assessment, the Ukraine Plan addresses the objectives of the Ukraine Facility, by recognising those key reforms and investments that can promote sustainable economic growth and attract investments, to strengthen the country’s growth potential in the medium-to-long term. The Plan also delivers a framework to guide the recovery, reconstruction and modernization of Ukraine. Finally, the inspection finds that the Plan proposes satisfactory mechanisms and arrangements to safeguard the financial interest of the EU, by ensuring an effective implementation, monitoring and reporting on the Plan.
Commission President Ursula von der Leyen stated: “Ukraine’s strategy for reforms and investments offers a solid basis to rebuild a more modern and prosperous Ukraine, on its path towards the EU. The Commission’s positive assessment of the Ukraine Plan will pave the way for regular payments under the Ukraine Facility. With today’s proposal, we showcase once again that Europe stands with Ukraine for as long as it takes, and that we are ready to deliver much-needed financial support”.
Can Ukraine’s Reforms Sustain Democratic Mechanisms?
The Ukraine Plan determines 69 reforms and 10 investments, broken down into 146 qualitative and quantitative arrows. The reforms presented under the Ukraine Plan cover 15 domains including energy, agriculture, transport, green and digital growth, human capital, as well as state-owned companies, the business environment, public finances, and decentralisation. They strive to enhance Ukraine’s macro-economic and financial resilience, improve governance, increase the capacity and efficiency of the management, the accountability and integrity of the judiciary, support the development of the private sector and construct an environment conducive to sustainable economic growth.
Several reforms are anticipated to help Ukraine’s actions on the accession path by increasing alignment with the EU acquis, notably in public administration, public finance administration, anti-money laundering, public procurement, as well as the transport and agri-food sectors. Investments surround the fields of human capital, energy, transport, agri-food, business environment and regional policies.
