EUROGROUP,COUNCIL OF THE EUROPEAN UNION,update

 

Meetings Thursday, 24 October 2024

● Eurogroup   24/10/2024 09:49 | Meetings | Agenda highlights - Eurogroup, 4 November 2024   The Eurogroup will take stock of macroeconomic developments and the outcomes of the annual international meetings in Washington DC. The chairs of the Single Supervisory Mechanism and the Single Resolution Board will update ministers of countries participating in the banking union as part of their biannual reports. Ministers will also focus on euro area competitiveness, aiming to adopt a formal statement, and will follow up on the implementation of the capital markets union.

Press material Wednesday, 23 October 2024

● Council of the EU   23/10/2024 21:56 | Press release | Immobilised assets: Council greenlights up to €35 billion in macro-financial assistance to Ukraine and new loan mechanism implementing G7 commitment   The Council today adopted a financial assistance package to Ukraine, including an exceptional macro-financial assistance (MFA) loan of up to €35 billion and a loan cooperation mechanism that will support Ukraine in repaying loans for up to €45 billion provided by the EU and G7 partners. The financial assistance package aims at supporting Ukraine in covering its urgent financing needs that have increased due to Russia’s intensified aggression against Ukraine. The exceptional MFA will contribute to covering Ukraine´s financing gap, thereby supporting macro-financial stability in Ukraine and easing Ukraine´s external financial constraints. The exceptional MFA loan and eligible bilateral loans from G7 partners under the ‘Extraordinary Revenue Acceleration (ERA) Loans for Ukraine' initiative will be repaid by future flows of extraordinary profits accruing to central securities depositories in the EU as a result of the implementation of the immobilisation of Russian sovereign assets. The Ukraine loan cooperation mechanism will disburse these funds - as well as possible amounts received as voluntary contributions from Member States and third countries or other sources - in the form of financial support to Ukraine, to assist it in servicing and repaying all G7 loans. The up to €35 billion MFA loan is the EU's contribution to the G7 loan of up to €45 billion. The new MFA operation will be linked to policy conditions that are consistent with the Ukraine Facility, in particular the Ukraine Plan. The management and control systems proposed under the Ukraine Plan and specific provisions on the prevention of fraud and other irregularities will also apply to the MFA loan. EU borrowing to fund the extraordinary MFA loan to Ukraine will be guaranteed by the EU budget headroom. The MFA loan is expected to be made available to Ukraine before the end of 2024 and have a maximum duration of 45 years. According to new rules also adopted today, 95% of the proceeds that have been generated by central securities depositories (CSDs) in the EU as a result of their implementation of the immobilisation of Russian sovereign assets and that have been transferred to the Union will be allocated to the EU budget and will now be used for the Ukraine Loan Cooperation Mechanism (ULCM), which will disburse these funds in the form of financial support to Ukraine, to assist it in servicing and repaying the loans. The remaining 5% will continue to be allocated to the European Peace Facility. The new allocation will start applying from the second half of 2025 (to the second biannual payment of the financial contribution made in 2025 and to all payments thereafter). Next steps The legal acts adopted today will enter into force on the day after its publication in the Official Journal of the EU. Background On 19 September 2024 the Commission presented a proposal for a regulation on an exceptional macro-financial assistance (MFA) loan and a Ukraine loan cooperation mechanism. At the same time, the High representative presented a proposal for a Council implementing decision on restrictive measures in view of Russia’s actions destabilising the situation in Ukraine and, together with the Commission, a joint proposal for a Council implementing regulation concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine. Subject to EU law, Russia’s assets should remain immobilised until Russia ceases its war of aggression against Ukraine and compensates it for the damage caused by this war. In view of a speedy adoption and ensuring that the macro-financial assistance reaches Ukraine as soon as possible, the European Parliament and the Council adopted the Commission’s proposal for a regulation without changes. The European Parliament voted on the text in first reading on 22 October 2024 and the Council by written procedure, which ended today. The two implementing acts were also adopted by the Council by written procedure today. G7 Leaders announced in June 2024 the launch of the “Extraordinary Revenue Acceleration” loans for Ukraine, to make available approximately $ 50 billion (€45 billion) for Ukraine that will be serviced and repaid by future flows of extraordinary revenues stemming from the immobilisation of Russian sovereign assets held in the European Union and other relevant jurisdictions.  In its conclusions, the European Council on 27 June 2024 invited the Commission, the High Representative and the Council to take work forward. The financial package adopted today implements these commitments. Until now, extraordinary profits stemming from the immobilisation of Russian sovereign assets and available to the EU have been channelled principally through the European Peace Facility to support Ukraine's military capabilities, and to a lesser extent through the Ukraine Facility to support the country's reconstruction and modernisation. On 26 July 2024, a first instalment of €1.5 billion was made available by the EU in support of Ukraine. Regulation establishing the Ukraine Loan Cooperation Mechanism and providing exceptional macro-financial assistance to Ukraine Result of the written procedure and statements EU response to Russia's invasion of Ukraine (background information) The Ukraine Facility   Press material Thursday, 24 October 2024     ● Council of the EU   24/10/2024 17:24 | Press release | Russia/Ukraine: Statement by the High Representative on behalf of the EU on reports of the DPRK sending troops to Russia   The European Union is deeply alarmed by reports that the DPRK is sending troops to participate in Russia’s illegal war of aggression against Ukraine. This would constitute a serious breach of international law, including the most fundamental principles of the UN Charter. It would be a unilateral hostile act by the DPRK with serious consequences for European and global peace and security. This development also illustrates once again how Russia is spreading instability and escalation in the region and across the globe. The European Union strongly condemns the deepening military cooperation and arms transfers between the DPRK and Russia, which flagrantly violate multiple United Nations Security Council resolutions. The EU urges the DPRK to stop providing support to Russia’s illegal war efforts. Russia’s deepening military cooperation with the DPRK sends a clear message: despite its stated readiness to negotiate, Russia is not sincerely interested in a just, comprehensive and lasting peace. On the contrary, Russia is escalating and desperately seeking any help for its war, including from actors that are severely disrupting global peace and security. In addition, with its disturbing shift of position on the denuclearisation of the DPRK, as expressed by Foreign Minister Lavrov, Russia relinquishes its key obligations from the Non-Proliferation Treaty (NPT) including to prevent nuclear proliferation and violates multiple UN Security Council resolutions adopted with Russia's support.  By doing so, Russia compromises its responsibilities as a permanent member of the Security Council and as a UN member state. The DPRK cannot and will never have the status of a nuclear weapon State in accordance with the NPT. The DPRK's ongoing support for Russia's war of aggression against Ukraine illustrates how closely linked European security is to that of the Indo-Pacific. The European Union will coordinate with international partners on the matter, including on responses.