Next week should be decisive in approving Ukraine’s budget financing plans.
An EU summit will take place on December 14–15, where, among other things, a political decision should be considered and made on the issue of allocating 50 billion euros to Ukraine for 2024–2027.
Let me remind you that we are talking about the UkraineFacility instrument proposed by the European Commission (EC), of which:
- 39 billion euros should go to finance the budget;
- 8 billion euros for preferential loans to priority sectors of the economy;
- 3 billion euros for technical assistance.
According to the EC’s proposal, these funds should be reserved through amendments to the EU budget for 2021–2027 and adopted in a package together with other items of increase in EU internal spending (for migration, investment in strategic sectors, debt servicing).
As the FT writes, on the eve of the Summit there are significant disputes between EU countries regarding this budget package and, including, regarding the volume of assistance to Ukraine. The victory of the far right in the parliamentary elections in the Netherlands and the budget crisis in Germany make it difficult to reach an agreement on changes to the EU budget. This is in addition to the position of Hungary, which is generally trying to block the allocation of funds to Ukraine in the EU budget, consolidating assistance at an extra-budgetary (that is, less guaranteed) level and reducing it by at least half.
It looks like the US Senate and Congress must decide on a support package for Ukraine by December 15. Intense debate continues there, too, but the likelihood of receiving bicameral support for the Ukraine aid package before the New Year holidays is high.
Funding from the EU and the US is not a gift, as various populists say
I am sure that, despite all the controversy, before the end of the year there will be good news from Brussels and Washington, which will show the steadfastness of our allies in opposing Russian aggression. Funding from the EU and the US is not a gift, as various kinds of populists say. God forbid that any country should ever receive such “gifts” from fate. The losses that Ukraine received due to the international security guarantees promised in the 90s and not working are an order of magnitude greater than the external assistance that helps keep the economy, social sphere and defense afloat.
Budget dispute in the EU: Ukraine may be left without 50 billion euros, – FT
But we also finally need to grow up. We have in our hands the mobilization of all available internal resources, primarily from de-shadowing, reducing the shadow economy, and a merciless fight against corrupt officials. In our hands is the development of mechanical engineering, the defense industry and other related industries that will strengthen our defense capability. It is in our hands to fulfill external agreements and maintain the pace of accession to the EU after the opening of negotiations. The call “everything for the front, everything for Victory” should become not just a beautiful slogan, but a real incentive for the entire Ukrainian society.