Dear readers,
After a very politically intense week in Strasbourg, I can finally give you a proper update on the big news that happened earlier this week: the Ukraine Facility has been approved! This €50b in financial aid that I negotiated is a crucial step in the right direction, not only to support Ukraine’s reconstruction efforts but also to ensure it can defend itself against Russia’s aggression and pave its way into the EU.
But the Ukraine Facility does much more than that: it also ensures that these funds will improve the country from within.
After months of hard work we managed to reach a deal, and I am proud to say that our amendments and negotiation shaped this law fundamentally. Here are some of the most important topics that we brought into the law:
- Democratic: Ukraine’s highest democratic body is involved in the process. Thanks to our amendments the Verkhovna Rada (Ukrainian Parliament) becomes a key actor in the screening and oversight of the Ukraine Plan. Through the creation of monitoring committees, their national Parliament and NGOs will be kept up to date on the implementation of the plan.
- Sustainable: 20% Green spending quota for investments. We made sure that when Ukraine uses these funds to invest in its recovery, they help the country to build back better with sustainable and green financing.
- Competitive: 15% for SMEs, start-ups and scale-ups. I am especially proud that we succeeded in putting forward dedicated funds for innovative SMEs and Ukraine’s entrepreneurs. In a post-soviet economy with many formerly state-owned companies and oligarchs, this is crucial. It will also ensure all funds are tracked for industry and size of company!
- Regional: 20% sub-national authorities quota. To counter centralization tendencies, we ensured that local and regional governments and authorities need to be involved in writing the Ukraine plan. And we made sure that parts of the investment portion go to them.
- Transparent: Final beneficiaries receiving >100k listed. to list everyone who receives more than 100k from the EU Ukraine facility. This will prevent corrupt companies and oligarchs from channeling the money back to Russia or into their own pockets.
I am thrilled because we found a way to ensure that these funds will be used to build a competitive and decentralized economy, helping Ukraine become more democratic, more transparent and more resilient. Especially in a country with corruption issues, it‘s crucial we include safeguards for cities and regions, for small business, and for civil society.
This also shows that to write a law, you need much more than lifting a single veto. The next step is the vote in the European Parliament plenary at the end of February. Immediately after, the European Commission can agree on the framework with Ukraine and transfer the first funds. But this is not enough.
Ukraine needs Europe’s full support and cannot let the financial or military support hinge on one government’s veto! This is why, I will now fight for Hungary to not take over the rotating Council Presidency for six months as of July 2024. Europeans and Hungarians alike deserve a Council Presidency that upholds European values and fights for them at home and abroad.
I will keep you updated on what happens,
Yours,
Damian
