Last chance for Ukraine: What lies behind the EU’s €50 billion plan

The EU has made its intentions clear, rolled up its sleeves, and begun pulling us towards a brighter future over the next four years. These are the first impressions of the new EU Ukraine Facility, a €50 billion program for Ukraine proposed by the European Commission.

According to this program, the designated €50 billion will be spent to transform Ukraine into a country of prosperity, showcasing reforms and preparing it for EU membership.

It aims to create a modernized country with job opportunities, infrastructure, and, conversely, no poverty or hardships.

Therefore, the program consists of three components:

• Grant and credit support for budget expenditures and recovery costs in accordance with the “Plan for Ukraine.” The plan should encompass the vision for reconstruction and a list of necessary reforms for EU accession—accounting for 78% of the funding.
• Investment support to attract private funds, covering credit and investment risks. It can be utilized by municipalities, state-owned enterprises, and private companies—accounting for 16% of the funding.
• Technical assistance and other supportive measures, including interest coverage for 4 years of loans. This includes efforts to hold Russia accountable, accounting for 5% of the funding.

First and foremost, Ukraine must create a plan detailing its goals for the next four years. This plan should encompass everything from bridge reconstruction, social assistance payments, the development of draft laws, to institutional reforms. The European Union will finance the expenses outlined in this plan.

The “Plan for Ukraine” must be comprehensive and cover multiple aspects, ranging from the reconstruction of devastated infrastructure and enhancing local governance capacity to green, inclusive economies, and responsible budgetary policies.

It will be integrated into the broader framework of European integration and must align with existing international agreements (such as the Association Agreement) and the spirit of European values: respect for human dignity, freedom, democracy, equality, the rule of law, and the protection of human rights.

Funds for implementing the EU plan will be provided quarterly and incrementally. Failure to fulfill a plan’s objective will result in a loss of funds.

True leaders towards a bright future are those who genuinely contribute, not those who offer empty promises. We will have to overcome significant challenges: making the plan realistic and then executing it. We will need to demonstrate tangible results within the promised timeframe.

For us, this is the very last chance. Slowing down EU integration would mean the risk for Ukraine becoming a gray zone, a wild field stuck between eastern barbarians and the developed West for decades or longer.

If anyone dares to steal funds from the EU program, the consequences will be severe. The rule of law and democracy failures might even lead to the program’s revocation and an early demand for the return of all provided credits.

This time, everything is incredibly serious. An auditing board, European prosecutors, a European anti-fraud office, and other respectable figures will demand access to all information and be vested with relevant rights concerning those who handle European funds.

For Ukraine, this is a clear opportunity to become stronger and join the EU. We will be “guided towards a better fate with an iron fist,” and it is advisable not to resist but to utilize the support offered to us as efficiently as possible.

The column was published in Ukrainian on European Pravda.