EU finance ministers approve €5bn for Ukraine

Shiva Singh

Belgium, (Brussels Morning Newspaper) EU finance ministers approved additional financial support for Ukraine worth 5 billion euro at a meeting in Prague on Friday.

The bloc approved aid worth 1 billion euro to Ukraine in July, with finance ministers stressing the importance of supporting Ukraine at the Economic and Financial Affairs Council (ECOFIN) meeting on Friday.

The EU Council noted in a statement that the latest tranche of aid “will complement other EU support to Ukraine in the humanitarian, development, customs and defence fields.”

Czech Minister of Finance Zbyněk Stanjura pointed out that “the new loan of 5 billion euro will be used for the day-to-day running of the state and to ensure the operation of the country’s critical infrastructure such as offices, schools and hospitals.”

The Council noted that finance ministers also discussed post-war reconstruction of Ukraine and added that the bloc provided the country with macro-financial assistance (MFA) grants and loans worth 7 billion euro in the period between 2014 and 2022.

Valdis Dombrovskis, European Commissioner for Trade, stressed at the ECOFIN conference that the bloc is facing a very demanding period.

EU growth limited

He pointed out that the EU is facing energy supply issues and record-high inflation, which limits growth and leaves little room for manoeuvring.

Dombrovskis stressed the importance of implementing prudent fiscal policies next year, noting that they should prioritise fiscal sustainability and help the European Central Bank (ECB) to rein in inflation.

“At the same time, we need to help the people and companies that suffer most… so the support measures need to be well targeted and temporary,” he observed.

The Commission will publish orientations later in autumn, Dombrovskis announced and added that it will focus on making public debt sustainable, which will require investments and reforms.

“Second, given divergent debt levels across member states, there cannot be a one-size-fits-all approach,” he stressed and pointed out “as we have outlined, there can be more leeway for member states, but within a common set of rules.”

Dombrovskis stressed the importance of balancing taxation, noting that the EC wants member states to secure revenues while cushioning the blow of the crisis on the most vulnerable.

He pointed out that the EU agreed to implement a global minimum corporate tax and concluded that the EC will make this its top priority.

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Shiva is a professional digital marketer who covers the latest updates in the tech industry from across the globe. With an experience of over 5 years in the world of Information Technology, he likes to keep up with every major development and writes fact-based pieces backed by in-depth research.