European Parliament Supports Creation of €50 Billion Ukraine Fund

Tuesday, 3 October 2023

The European Parliament has voted in favour of a resolution to revise the EU budget for 2021-2027, which, among other things, provides for the creation of a special €50 billion Ukraine Facility.

The amendments on the mid-term review of the multiannual financial programme for 2021-2027 were approved by 393 votes to 136. Another 92 MEPs abstained.

According to the document, the budget review should focus on the multiple consequences of Russia's war of aggression against Ukraine, on strengthening the EU's open strategic autonomy and sovereignty, and on providing the EU with adequate flexibility to respond to crises.

Earlier, the European Parliament supported the European Commission's proposal to spend more funds on defence in the EU budget for next year.

Prior to that, the European Parliament voted in favour of a new mechanism aimed at stimulating the defence industry and helping countries modernise their armaments.

The new short-term instrument, abbreviated as EDIRPA, which was agreed with the EU Council in late June, will help countries address the most urgent defence needs amid intensive assistance to Ukraine and should also increase the efficiency and competitiveness of European manufacturers.

The European Parliament and the Council agreed on a €300 million budget to finance this instrument. The EU will contribute up to 20% of the expected value of the joint procurement contract for each consortium of member states and associated countries.

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