Decision (EU) 2015/601 providing macro-financial assistance to Ukraine

What it is

to grant macro-financial assistance (MFA) to Ukraine of a maximum amount of EUR 1.8 billion. PROPOSED ACT: Decision of the European Parliament and the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in line with the ordinary legislative procedure on an equal footing with the Council. BACKGROUND: the EU is seeking an increasingly close relationship with Ukraine that goes beyond mere bilateral cooperation, encompassing gradual political association and economic integration . The Committee on International Trade adopted the report by Gabrielius LANDSBERGIS (EPP, LT) on the proposal for a decision of the European Parliament and of the Council providing macro-financial assistance to Ukraine. In its most recent resolution of 15 January 2015 on the situation in Ukraine, the European Parliament welcomed the proposal by the Commission to extend an additional EUR 1.8 billion in macro-financial assistance to Ukraine and called for a development of a major assistance plan for Ukraine. In the current extremely difficult situation in which Ukraine finds itself, Members considered that the timely approval of the Commission proposal for macro-financial assistance to Ukraine is important to enable two of the three tranches (of EUR 600 million each) to be disbursed before the end of 2015. Such an approval would prove that the EU can act swiftly, decisively and commensurate with its political commitments. It is for this reason that Members recommended the European Parliament to adopt its position at first reading following the ordinary legislative procedure, taking over the Commission proposal. The European Parliament adopted by 492 votes to 107, with 13 abstentions, a legislative resolution on the proposal for a decision of the European Parliament and of the Council providing macro-financial assistance to Ukraine. Parliament adopted its position at first reading following the ordinary legislative procedure without making amendments to the Commission proposal. Under this Decision, the Union shall make macro-financial assistance available to Ukraine of a maximum amount of EUR 1.8 billion , with a view to supporting Ukraine's economic stabilisation and a substantive reform agenda. The assistance shall contribute to covering Ukraine's balance of payments needs as identified in the IMF programme. The full amount of the Union's macro-financial assistance shall be provided to Ukraine in the form of loans . The Commission shall be empowered on behalf of the Union to borrow the necessary funds on the capital markets or from financial institutions and to on-lend them to Ukraine. The loans shall have a maximum maturity of 15 years. The Union's macro-financial assistance shall be made available by the Commission in three loan instalments. A pre-condition for granting the Union's macro-financial assistance shall be that Ukraine respects effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and guarantees respect for human rights. The Commission shall regularly inform the European Parliament and the Council of developments regarding the Union's macro-financial assistance and shall provide…

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