The Council of Economic and Financial Affairs (ECOFIN), under the Cypriot Presidency, has agreed on a package of proposals for a €90 billion loan to Ukraine, covering the country’s financing needs for 2026 and 2027. The agreement, reached in cooperation with the European Parliament and the European Commission, foresees the disbursement of funds starting from the second quarter of the current year.
In a press conference following the meeting on 17 February, Finance Minister Makis Keravnos said that the Cypriot Presidency worked to ensure the immediate financing of Ukraine, which has been affected by Russian aggression. During the discussions, ministers focused on the economic and financial impacts of the Russian invasion and welcomed the agreement to support Ukraine.
Also, Keravnos noted that the Council approved amendments to Lithuania’s Recovery and Resilience Plan aimed at accelerating its implementation. He highlighted that, to date, all Member States’ Recovery and Resilience Plans have been approved, with disbursements amounting to approximately €394 billion, representing 68% of the total committed amount under the Recovery and Resilience Facility regulation.
He also pointed out that, as part of strengthening defence spending, the national escape clause was activated for Austria, covering a period of four years. The measure is expected to facilitate the gradual increase of defence expenditures while ensuring the country’s fiscal sustainability. Additionally, Keravnos announced that the Council adopted eight implementing decisions under the Security Action for Europe (SAFE), paving the way for the provision of affordable long-term loans by the Commission. He added that these decisions allow participating Member States to acquire modern defence equipment and enhance their defence readiness.
Finally, he stated that the EU list of non-cooperative tax jurisdictions was updated. Vietnam and the Turks and Caicos Islands were added to the list, while Fiji, Samoa, and Trinidad and Tobago were removed.
(Source: CNA)
