Amending the multiannual financial framework for the years 2021 to 2027

The European Parliament adopted by 490 votes to 130, with 32 abstentions, a legislative resolution on the draft Council regulation amending Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021 to 2027.

Parliament gave its consent to the draft regulation of the Council.

Following Russia’s unprovoked and unjustified war of aggression against Ukraine, Ukraine will require continued financial and economic assistance provided in a predictable, continuous, orderly, flexible and timely manner in order to cover its financing needs.

The Council authorised enhanced cooperation for the establishment of a Loan for Ukraine in the amount of EUR 90 billion. Pursuant to Article 332 of the Treaty on the Functioning of the European Union (TFEU), expenditure resulting from implementation of enhanced cooperation is to be borne by the participating Member States. The administrative costs related to the implementation of enhanced cooperation are to be borne by the Union budget.

Regulation (EU, Euratom) 2020/2093, as amended, stipulates that:

- where it is necessary to use the resources from the special instruments, the corresponding commitment and payment appropriations shall be entered in the budget over and above the relevant MFF ceilings;

- where it is necessary to mobilise a guarantee for financial assistance in the form of a loan to Ukraine, which is available for the years 2026 and 2027 for an overall amount of up to EUR 90 billion, to be provided through enhanced cooperation framework, the necessary amount shall be mobilised over and above the MFF ceilings.

Ukraine Support Loan Instrument

After having sought budgetary availabilities, first under existing budgetary ceilings and subsequently under other special instruments, the Ukraine Support Loan Instrument may be mobilised by the European Parliament and the Council in the framework of the budgetary procedure provided for in Article 314 TFEU. The Ukraine Support Loan Instrument may be used for the sole purpose of financing debt service costs of a loan to Ukraine to be provided through enhanced cooperation.