Parliament approves key budgetary support for Ukraine and the EU

February 28, 2024 by European Union Leave a Comment

This article is brought to you in association with the European Parliament.

Long-term support for Ukraine, better funding for priorities like migration, external policies and crisis preparedness
Changes to EU budget tackle current and future challenges
“Strategic Technologies for Europe Platform” (STEP) to make EU more competitive and resilient in strategic sectors
MEPs achieved stronger democratic oversight for the Ukraine Facility, and pave the way for using frozen Russian assets

MEPs approve long-term funding for Ukraine, the “Strategic Technologies for Europe Platform” (STEP), and associated major changes to the multi-year EU budget.

Parliament on Tuesday approved the revision of the EU’s long-term budget – the multiannual financial framework (MFF). This includes the €50 billion Ukraine Facility and the “Strategic Technologies for Europe Platform” (STEP), which aims to make the EU more strategically independent and to foster innovation.

Revision of the EU long-term budget

This update of the MFF, approved with 499 votes in favour, 67 against and 31 abstentions, will enable the EU budget to respond more effectively to evolving needs and unforeseen circumstances. In particular, it bolsters the EU’s budget to deal with migration and external challenges as well as the EU’s crisis preparedness and budgetary flexibility. In line with Parliament’s demands, the revision introduces a mechanism to tackle escalating costs linked to the repayment of the NextGenerationEU recovery plan amid rising interest rates. MEPs reached a deal with member states on the long-term budget on 6 February. All the details are in the corresponding press release.

Parliament also adopted a resolution on the revision of the MFF regulation by 422 votes in favour, 101 against and 101 abstentions.

Watch the plenary speeches by MFF co-rapporteurs Jan Olbrycht (EPP, PL) (link to speech) and Margarida Marques (S&D, PT) (link to speech).

Financial aid to Ukraine

The MFF revision also establishes the so-called Ukraine Facility, approved with 536 votes in favour, 40 against and 39 abstentions, with an overall capacity of €50 billion for grants, loans and guarantees, showing that the EU stands by Ukraine and will keep supporting it as long as it takes. Read about the improvements MEPs obtained during the negotiations in the press release on the deal with the Council from 6 February.

Watch the plenary speeches by Michael Gahler (EPP, DE) (link to speech), co-rapporteur for the Committee on Foreign Affairs, and Eider Gardiazabal Rubial (S&D, ES), co-rapporteur for the Committee on Budgets (link to speech).

“Strategic Technologies for Europe Platform” (STEP)

The platform was approved with 517 votes in favour, 59 against and 51 abstentions. It is another part of the budgetary revision package and aims to consolidate and enhance Europe’s standing in crucial technological fields. These fields include digital technologies, clean and resource-efficient technologies, such as net-zero technologies, and biotechnologies. Read the press release for all the details on the agreement with member states from 7 February.

Watch the plenary speeches by José Manuel Fernandes (EPP, PT) (link to speech), co-rapporteur for the Committee on Budgets, and Cristian-Silviu Buşoi (EPP, RO), Chair of the Committee on Industry, Research and Energy (link to speech), speaking on behalf of co-rapporteur Christian Ehler (EPP, DE).

Background

The Multiannual Financial Framework (MFF) sets the annual limits (expenditure ‘ceilings’) on EU commitments in different policy areas (broad categories of spending called ‘headings’) and on overall annual payments for a period of seven years. The current framework for 2021-2027 was adopted in 2020. The European Commission proposed a mid-term revision on 20 June 2023, including the establishment of the Ukraine Facility and the STEP.

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