European Parliament Votes for €1 Billion in Aid to Ukraine

A €1 billion macro-financial loan to help Ukraine cover part of its external financing needs in 2018-2019 was approved by Parliament on Wednesday.

MEPs agreed to an EU Commission proposal to provide Kiev with another package of macro-financial assistance (MFA), which is an exceptional emergency resource for EU neighbourhood countries struggling to pay their bills.

They nevertheless insisted that Parliament, the Council, and the Commission issue a joint statement on policy conditions that Ukraine must fulfil, due to concerns over the pace of reforms and the fight against corruption in the country.

This statement, annexed to the decision, stresses that as a precondition for granting the loan, Ukraine must respect effective democratic mechanisms - including a multi-party parliamentary system - the rule of law, and human rights. It also underlines that the use of the EU aid must help reduce poverty and create jobs in Ukraine.

MEPs also insist that the loan is conditional upon progress in fighting corruption, and in particular, the setting up of a specialised anti-corruption court in line with the Council of Europe's Venice Commission recommendations. (Ukraine's parliament voted on 7 June to set up this court).

The Commission and the European External Action Service are to check that these preconditions are met throughout the process, and make their findings public. If they are not met, then the Commission should temporarily suspend or cancel disbursement, say MEPs.

The resolution was backed by 527 votes to 124, with 29 abstentions.

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Jaroslaw Walesa (EPP,PL), rapporteur, said: "The purpose of this aid is to make the country more economically stable, and there are firm...