The Ukraine Facility constitutes a substantial portion of the nearly 100 billion euros requested by the European Commission to fortify its existing budget.
EBN – The European Union plans to secure financial resources, marking the start of a plan to enhance its budget.
The primary objective is to secure more funding for the Ukraine Facility. The programme also aims to support Ukraine with a substantial 50 billion euros from 2024 to 2027.
Furthermore, the funds will be in the form of grants and loans, following a historic Marshall Plan model.
European Parliament Approves Budget Revision
In a significant development, the European Parliament has granted its approval to the European Commission’s proposal for budget revision.
Michael Gahler, Member of the European Parliament representing the European People’s Party (EPP) and co-rapporteur for the Ukraine Facility, expressed the entity’s support for the Ukrainian reconstruction government.
Gahler further emphasised that they’ll promote private investment and ensure the continuity of expertise for those active in the programme.
The Ukraine Facility constitutes a substantial portion of the nearly 100 billion euros requested by the European Commission to fortify its existing budget for the period 2021-2027.
The remaining half of this budget request would be distributed across six key areas. Those areas are migration, industrial planning sovereign fund, interest payments on pandemic recovery debt, staff expenditures, and a contingency reserve.
Challenges Arise from Ukraine Facility Funding
The Budget Committee of the European Parliament is advocating for an additional 10 billion euros in budget expansion. The proposed financing strategy involves a combination of contributions from member states and the exploration of new revenue sources.
The alternative revenue sources may include taxation on global corporations and financial transactions.
However, the European Parliament is opposed to reducing allocations for ongoing programmes, particularly those concerning cohesion and common agricultural policies.
Margarida Marques, a representative of the Socialists and Democrats (S&D), asserted the importance of safeguarding these fundamental policies.
Additionally, the quest for increased funding is expected to encounter resistance from the European Council, with some member states reluctant to increase their contributions to the EU or embark on joint debt initiatives.
As the European election campaign unfolds, the pursuit of a budget increase will be a test of the EU’s solidarity and expansion aspirations.
