Decision (EU) 2018/947 providing further macro-financial assistance to Ukraine

What it is

to provide additional macro-financial assistance to Ukraine to support economic stabilisation and structural reforms. PROPOSED ACT: Decision of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council. BACKGROUND: relations between the European Union and Ukraine continue to develop within the framework of the European Neighbourhood Policy and the Eastern Partnership. An Association Agreement between the Union and Ukraine , including a Deep and Comprehensive Free Trade Area (DCFTA), entered into force on 1 September 2017. The Committee on International Trade adopted the report by Jarosław WAŁĘSA (EPP, PL) on the proposal for a decision of the European Parliament and of the Council providing further macro-financial assistance to Ukraine. The committee recommended that the European Parliament’s position adopted at first reading under the ordinary legislative procedure should amend the Commission proposal. The amended text is changed back to the wording of the previous Decisions of the European Parliament and of the Council on providing macro-financial assistance, specifying that where the conditions set out in the proposed decision are not met , the Commission shall temporarily suspend or cancel the disbursement of the Union’s macro-financial assistance. A joint statement by the Parliament, the Council and the Commission specifies the following: a pre-condition for granting macro-financial assistance is that the beneficiary country respects effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and guarantees respect for human rights; fulfilment of this precondition will be monitored throughout the life-cycle of the Union's macro-financial assistance; the economic policy and financial conditions of the Memorandum of Understanding to be agreed between the European Union and Ukraine shall include inter alia obligations to strengthen the governance, the administrative capacities and the institutional set-up in particular for the fight against corruption as well as conditions on combating money laundering and tax avoidance; the Commission shall keep Parliament and the Council regularly informed of developments relating to assistance and provide them with the relevant documents; the draft Commission Implementing Decision approving the Memorandum of Understanding with an analysis of the expected social impact of the macro-financial assistance. This analysis will be submitted to the Member State Committee and shall be made available to the Parliament and the Council through the register of committee proceedings. The European Parliament adopted by 527 votes to 124 with 29 abstentions a legislative resolution on the proposal for a decision of the European Parliament and of the Council providing further macro-financial assistance to Ukraine. Parliament’s position adopted at first reading under the ordinary legislative procedure approved the European Commission's proposal for macro-financial assistance to Ukraine of up to EUR 1 billion to facilitate the…

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