2015/0005(COD) | [ParlTrack]

Proposal for a decision
Recital 6

(6) The Union’s macro-financial assistance should be an exceptional financial instrument of untied and undesignated balance-of-payments support, which aims at addressing the beneficiary’s immediate external financing needs and should underpin the implementation of a policy programme containing strong immediate adjustment and structural reform measures designed to improve the balance-of-payments position in the short termfor ad hoc financial support so as to ease the fiscal strain on Ukraine's public finances.

Amendment 11 #

Proposal for a decision
Recital 9 a (new)

(9a) On 28 December, the Verkhovna Rada of Ukraine adopted a law in respect of measures to stabilise the balance of payments of Ukraine in accordance with Article XII of the General Agreement on tariffs and trade 1994, which provides for the temporary increase of import duties by 5-10 % for 12 months having damaging effects on the unilateral trade preferences with the Union;

Amendment 12 #

Proposal for a decision
Recital 10

~~(10) Given that Ukraine is a country covered by the ENP, it should be considered to be eligible to receive the Union's macro-financial assistance.~~deleted

Amendment 13 #

Proposal for a decision
Recital 12

(12) The Union's macro-financial assistance should aim to support the restoration of a sustainable external financing situation for Ukraine, thereby supporting its economic and social development ~~in line with the Association Agreement~~.

Amendment 14 #

Proposal for a decision
Recital 14

(14) The Commission should ensure that the Union's macro-financial assistance is ~~legally and substantially in line with the key principles, objectives and mea~~subject to prior assessment of the level of general-government corruption in Ukraine in order to make sures t~~aken within the different areas of external action and other relevant Union policies~~hat the funds allocated and financed by the Member States are put to the best possible use.

Amendment 15 #

Proposal for a decision
Recital 15

(15) The Union's macro-financial assistance should support the Union's external policy towards Ukraine. Commission services and the European External Action Service should work closely together throughout the macro- financial assistance operation in order to coordinate, and to ensure the consistency of, Union external policy.deleted

Amendment 16 #

Proposal for a decision
Recital 16

(16) The Union's macro-financial assistance should support Ukraine's commitment to values shared with the Union, including democracy, the rule of law, good governance, respect for human rights, sustainable development and poverty reduction, as well as its commitment to the principles of open, rule-based and fair trade.deleted

Amendment 17 #

Proposal for a decision
Recital 17

(17) A pre-condition for granting the Union's macro-financial assistance should be that Ukraine respects ~~effective democratic mechanisms – including~~mechanisms based on a multi-party parliamentary system – and the rule of law, and guarantees respect for human rights and the right of peoples to self-determination. In addition, the specific objectives of the Union's macro- financial assistance should strengthen the efficiency, transparency and accountability of the public finance management systems in Ukraine and to promote structural reforms aimed at supporting sustainable ~~and inclusive~~ growth, employment creation and fiscal consolidation. Both fulfilment of the preconditions and the achievement of those objectives should be regularly monitored by the Commission ~~and the European External Action Service~~.

Amendment 18 #

Proposal for a decision
Recital 23

(23) The Union's macro-financial assistance should be subject to ~~economic policy~~financial management conditions, to be laid down in a Memorandum of Understanding. In order to ensure uniform conditions of implementation and for reasons of efficiency, the Commission should be empowered to negotiate such conditions with the Ukrainian authorities under the supervision of the committee of representatives of the Member States in accordance with Regulation (EU) No 182/2011. Under that Regulation, the advisory procedure should, as a general rule, apply in all cases other than as provided for in that Regulation. Considering the potentially important impact of assistance of more than EUR 90 million, it is appropriate that the examination procedure be used for operations above that threshold. Considering the amount of the Union's macro-financial assistance to Ukraine, the examination procedure should apply to the adoption of the Memorandum of Understanding, and to any reduction, suspension or cancellation of the assistance,

Amendment 19 #

Proposal for a decision
Recital 23 a (new)

(23a) High levels of corruption among Ukraine's top officials represents a major obstacle for foreign investment in the country. The private business interests of Ukrainian oligarchs have been influential in policy-making processes, forcing SMEs out of the market.

Amendment 2 #

Georgios EPITIDEIOS

Proposal for a decision
–

The European Parliament rejects the Commission proposal.

Amendment 20 #

Proposal for a decision
Article 1 – paragraph 1

1. The Union shall make macro-financial assistance available to Ukraine ("the Union's macro-financial assistance") of a maximum amount of EUR 1.8 billion, with a view to supporting Ukraine's economic stabilisation and a substantive ~~reform agenda~~constitutional, political, social and economic reform agenda and to securing a peaceful resolution of the conflict in eastern Ukraine on the basis of the Minsk Contact Group agreements. The assistance shall contribute to covering Ukraine's balance of payments needs as identified in the IMF programme.

Amendment 21 #

Proposal for a decision
Article 1 – paragraph 3

3. The release of the Union's macro- financial assistance shall be managed by the Commission in a manner consistent with the agreements or understandings reached between the International Monetary Fund (IMF) and Ukraine, and with the key principles and objectives of economic reforms set out in the EU- Ukraine Association Agreement and the EU-Ukraine Association Agenda agreed under the European Neighbourhood Policy (ENP)requirements of financial transparency. The Commission shall regularly inform the European Parliament and the Council of developments regarding the Union's macro-financial assistance, including disbursements thereof, and shall provide those institutions with the relevant documents in due time.

Amendment 22 #

Proposal for a decision
Article 1 – paragraph 3

3. The release of the Union's macro- financial assistance shall be managed by the Commission in a manner consistent with the agreements or understandings reached between the International Monetary Fund (IMF) and Ukraine, and with the key principles and objectives of economic reforms set out in the EU- Ukraine Association Agreement, which requires that the preferential treatment granted to Ukraine is conditional upon Ukraine abstaining from introducing new duties, and the EU-Ukraine Association Agenda agreed under the European Neighbourhood Policy (ENP). The Commission shall regularly inform the European Parliament and the Council of developments regarding the Union's macro-financial assistance, including disbursements thereof, and shall provide those institutions with the relevant documents in due time.

Amendment 23 #

Proposal for a decision
Article 1 – paragraph 3

3. The release of the Union's macro- financial assistance shall be managed by the Commission in a manner consistent with the agreements or understandings reached between the International Monetary Fund (IMF) and Ukraine, and with the key principles and objectives of ~~economic~~ reforms set out in the EU- Ukraine Association Agreement ~~and~~, the EU-Ukraine Association Agenda agreed under the European Neighbourhood Policy (ENP) and the Minsk Contact Group agreements for a peaceful resolution of the conflict in eastern Ukraine. The Commission shall regularly inform the European Parliament and the Council of developments regarding the Union's macro-financial assistance, including disbursements thereof, and shall provide those institutions with the relevant documents in due time.

Amendment 24 #

Proposal for a decision
Article 2 – paragraph 1

1. A pre-condition for granting the Union's macro financial assistance shall be that Ukraine respects ~~effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and guarantees respect for human rights.~~all of the following:

Amendment 25 #

Proposal for a decision
Article 2 – paragraph 1

1. A pre-condition for granting the Union's macro financial assistance shall be that Ukraine respects effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and guarantees respect for human rights and that the funds are used exclusively for non-military purposes and for purposes which do not intensify the conflict in eastern Ukraine.

Amendment 26 #

Proposal for a decision
Article 2 – paragraph 1

1. A pre-condition for granting the Union's macro financial assistance shall be that Ukraine respects effective democratic mechanisms – including a multi-party parliamentary system and the implementation of the anti-corruption legislation as amended – and the rule of law, and guarantees respect for human rights.

Amendment 27 #

Proposal for a decision
Article 2 – paragraph 1 – indent 1 (new)

- mechanisms to combat corruption within general-government departments and corruption involving general-government departments and private-sector businesses which are in receipt of grants or which have service provider links or partnership arrangements with general-government departments;

Amendment 28 #

Proposal for a decision
Article 2 – paragraph 1 – indent 2 (new)

- mechanisms based on a multi-party parliamentary system;

Amendment 29 #

Proposal for a decision
Article 2 – paragraph 1 – indent 3 (new)

- human rights and the right of peoples to self-determination.

Amendment 3 #

Georgios EPITIDEIOS

Draft legislative resolution
Paragraph 2

~~2. Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;~~deleted

Amendment 30 #

Proposal for a decision
Article 2 – paragraph 1 a (new)

1a. No later than six months after publication of this Decision, the Commission shall submit to the European Parliament and to the Council an assessment of the level of corruption in the instances referred to in paragraph 1 of this Article.

Amendment 31 #

Proposal for a decision
Article 2 – paragraph 2

~~2. The Commission and the European External Action Service shall monitor the fulfilment of this pre-condition throughout the life-cycle of the Union's macro-financial assistance.~~deleted

Amendment 32 #

Proposal for a decision
Article 2 – paragraph 3

~~3. Paragraphs 1 and 2 of his Article shall be applied in accordance with Council Decision 2010/427/EU.~~deleted

Amendment 33 #

Proposal for a decision
Article 3 – paragraph 1

1. The Commission, in accordance with the examination procedure referred to in Article 7(2), shall agree with the Ukrainian authorities on clearly defined economic policy and financial conditions, focusing on ~~structural reforms and sound~~the sound management of public finances, to which the Union's macro- financial assistance is to be subject, to be laid down in a Memorandum of Understanding ("the Memorandum of Understanding") which shall include a timeframe for the fulfilment of those conditions. The economic policy and financial conditions set out in the Memorandum of Understanding shall be consistent with the agreements or understandings referred to in Article 1(3), including the macroeconomic adjustment and structural reform programmes implemented by Ukraine, with the support of the IMF.

Amendment 34 #

Proposal for a decision
Article 3 – paragraph 1

1. The Commission, in accordance with the examination procedure referred to in Article 7(2), shall agree with the Ukrainian authorities on clearly defined ~~economic policy~~political and financial conditions, focusing on a peaceful resolution of the conflict, socially acceptable structural reforms and sound public finances, to which the Union's macro- financial assistance is to be subject, to be laid down in a Memorandum of Understanding ("the Memorandum of Understanding") which shall include a timeframe for the fulfilment of those conditions. The ~~economic policy and financial~~ conditions set out in the Memorandum of Understanding shall be consistent with the agreements or understandings referred to in Article 1(3), including the macroeconomic adjustment and structural reform programmes implemented by Ukraine, with the support of the IMF.

Amendment 35 #

Proposal for a decision
Article 3 – paragraph 2

2. The conditions referred to in Paragraph 1 shall aim, in particular, to enhance the efficiency, transparency and accountability of the public finance management systems in Ukraine, including for the use of the Union's macro-financial assistance. Progress in mutual market opening, the development of rules-based and fair trade and other priorities in the context of the Union's external policy shall also be duly taken into account when designing the policy measures. Progress in attaining those objectives shall be regularly monitored by the Commission.

Amendment 36 #

Proposal for a decision
Article 3 – paragraph 4

4. The Commission shall verify at regular intervals that the conditions in Article 4(3) continue to be met, including whether the economic policies of Ukraine are in accordance with the objectives of the Union's macro-financial assistance. In so doing, the Commission shall coordinate closely with the ~~IMF and the World Bank, and, where necessary, with the European Parliament and the Council~~European Parliament and the Council, and, where necessary, with the IMF and the World Bank.

Amendment 37 #

Proposal for a decision
Article 3 – paragraph 4

4. The Commission shall verify at regular intervals that the conditions in Article 4(3) continue to be met, including ~~whether the economic~~that the policies of Ukraine are in accordance with the objectives of the Union's macro- financial assistance. In so doing, the Commission shall coordinate closely with the IMF and the World Bank, and~~, where necessary,~~ with the European Parliament and the Council.

Amendment 38 #

Proposal for a decision
Article 4 – paragraph 3 – subparagraph 1 – point b

(b) a continuous satisfactory track record of implementing a policy programme ~~that contains strong adjustment and structural reform measures supported by a non- precautionary IMF credit arrangement~~making use of the funds allocated in a transparent manner and demonstrating that those funds have been soundly managed and are traceable within the public-finances set-up; and

Amendment 39 #

Proposal for a decision
Article 4 – paragraph 3 – subparagraph 1 – point b

(b) a continuous satisfactory track record of implementing a policy programme that contains strong ~~adjustment and structural reform measures~~measures securing reform and peace supported by a non- precautionary IMF credit arrangement; and

Amendment 4 #

Proposal for a decision
Recital 1

(1) Relations between the European Union and Ukraine are developing within the framework of the European Neighbourhood Policy (ENP) and the Eastern Partnership. An Association Agreement between the European Union and the European Atomic Energy Community and their Member States, on the one part, and Ukraine, on the other part (‘the Association Agreement’), including a Deep and Comprehensive Free Trade Area (DCFTA), was negotiated from 2007 to 2011 and was initialled in 2012. The Association Agreement was signed by Ukraine and the Union on 21 March and 27 June 2014. Since 1 November 2014 important parts of the Association Agreement have been provisionally applied in the areas of the respect for human rights, fundamental freedoms and rule of law, political dialogue and reform, justice, freedom and security, economic and financial cooperation.deleted

Amendment 40 #

Proposal for a decision
Article 4 – paragraph 3 – subparagraph 1 – point c

(c) the implementation, within a specific time-frame, of ~~the~~ economic policy ~~and financial conditions agreed in the Memorandum of Understanding~~measures the impact of which on the public finances and the domestic economy can be assessed.

Amendment 41 #

Proposal for a decision
Article 4 – paragraph 3 – subparagraph 1 – point c

(c) the implementation, within a specific time-frame, of the ~~economic policy~~political and financial conditions agreed in the Memorandum of Understanding.

Amendment 42 #

Eleftherios SYNADINOS

Proposal for a decision
Article 6 – paragraph 3 – point a

a) ensuring that Ukraine regularly checks that financing provided from the budget of the Union has been properly used, introduces the compulsory establishment of risk management and internal control procedures and of administrative bodies to verify the suitability of these procedures and compliance with them, takes appropriate measures to prevent irregularities and fraud, and, if necessary, takes legal action to recover any funds provided under this Decision that have been misappropriated;

Amendment 43 #

Eleftherios SYNADINOS

Proposal for a decision
Article 6 – paragraph 3 – point d

d) expressly authorising the Commission and the Court of Auditors to perform audits before, during and after the availability period of the Union's macro-financial assistance, including document audits and on-the-spot audits, such as operational assessments; the results of the audits shall be accompanied by indications of the necessary corrective measures or penalties;

Amendment 5 #

Proposal for a decision
Recital 2

(2) Following ~~the reinstatement of the Ukrainian constitution of 2004~~a coup d'état, presidential as well as parliamentary elections were successfully held on 25 May 2014 and 26 October 2014, respectively, in a civil war context. Following the formation on 2 December 2014 of a new government reflecting the outcome of the parliamentary elections, Ukraine has reconfirmed its commitment to political and economic reforms in line with the framework provided by the Association Agreement and presented an Action Plan outlining the intended reforms.

Amendment 6 #

Eleftherios SYNADINOS

Proposal for a decision
Recital 3

(3) The ~~violation of Ukraine's sovereignty and territorial integrity and the resulting military conflict have had damaging effects on Ukraine's already precarious~~ economic and financial stability of the country is precarious. Ukraine is facing a difficult balance of payments and liquidity position linked to receding confidence and concomitant capital flight, as well as a worsening fiscal situation as a result of the direct budgetary cost of the conflict, a deeper than expected recession and the loss of fiscal revenues from the areas controlled by the separatists. At the same time, pre-existing structural weaknesses, the corrupt public sector and budgetary and external- financial vulnerabilities have also contributed to the deterioration of the economic situation.

Amendment 7 #

Proposal for a decision
Recital 3

(3) The ~~violation of Ukraine's sovereignty and~~ territorial ~~integrity~~conflict and the resulting military conflict have had damaging effects on Ukraine's already precarious economic and financial stability. Ukraine is facing a difficult balance of payments and liquidity position linked to receding confidence and concomitant capital flight, as well as a worsening fiscal situation as a result of the direct budgetary cost of the conflict, a deeper than expected recession and the loss of fiscal revenues from the ~~areas controlled by the separatist~~Russian- speaking regions. At the same time, pre- existing structural weaknesses and budgetary and external-financial vulnerabilities have also contributed to the deterioration of the economic situation.

Amendment 8 #

Proposal for a decision
Recital 4

(4) In this context, Ukraine’s external financing needs are substantially larger than initially identified, which might requir~~ing~~e additional financial assistance by international creditors and donors. In its most recent programme review mission, the International Monetary Fund (IMF) has identified a significant financing need over and above the funding committed so far by the international community, which includes Union macro-financial assistance under Council Decision 2002/639/EC, Decision No 388/2010/EU of the European Parliament and of the Council and Council Decision 2014/215/EU.

Amendment 9 #

Proposal for a decision
Recital 5

(5) The Union has, on various occasions, declared its commitment to support the new Ukrainian authorities in their aims to stabilise the situation and pursue the course of reforms. The Union has also declared its readiness fully to support efforts of the international community and international financial institutions, especially the IMF, with regard to an international assistance package designed to address the urgent needs of Ukraine, conditional on Ukraine's clear commitment to ~~reforms. Financial support from the Union to Ukraine is consistent with the Union’s policy as set out in the ENP and in the Eastern Partnership. In its conclus~~curbing the uncontrolled distributions of 18 December 2014, the European Council states that, following the Commission’s second disbursement in December 2014 of EUR 500 million in macro-financial assistance, the Union and its Member States stand ready to further facilitate and support Ukraine’s reform process, together with other donors and in line with IMF conditionalityfunds allocated and to combating the corruption furthered by that assistance.

source: 549.400

2015/02/27 AFET 40 amendments...

Amendment 1 #

Proposal for a decision
Recital 3

(3) ~~The violation of Ukraine's sovereignty and territorial integrity and the resulting military conflict have had damaging effects on Ukraine's already precarious economic and financial stability.~~ Ukraine is facing a difficult balance of payments and liquidity position linked to receding confidence and concomitant capital flight, as well as a worsening fiscal situation as a result of the direct budgetary cost of the conflict, a deeper than expected recession and the loss of fiscal revenues from the areas controlled by the separatists. At the same time, pre-existing structural weaknesses and budgetary and external- financial vulnerabilities have also contributed to the deterioration of the economic situation.

Amendment 10 #

Proposal for a decision
Recital 17

(17) A pre-condition for granting the Union's macro-financial assistance ~~should~~must be that Ukraine res~~pect~~tablishes effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and guarantees respect for human rights. In addition, the specific objectives of the Union's macro-financial assistance ~~should~~must strengthen the efficiency, transparency and accountability of the public finance management systems in Ukraine and to promote structural reforms aimed at supporting sustainable and inclusive growth, employment creation and fiscal consolidation. Both fulfilment of the preconditions and the achievement of those objectives should be regularly monitored by the Commission and the European External Action Service.

Amendment 11 #

Proposal for a decision
Recital 17

(17) A pre-condition for granting the Union's macro-financial assistance should be that Ukraine respects effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and guarantees respect for human rights. In addition, the specific objectives of the Union's macro-financial assistance should strengthen the efficiency, transparency and accountability of the public finance management systems in Ukraine and to promote structural reforms aimed at supporting sustainable and inclusive growth, employment creation and fiscal consolidation. Both fulfilment of the preconditions and the achievement of those objectives ~~should~~must be regularly monitored by the Commission and the European External Action Service.

Amendment 12 #

Proposal for a decision
Recital 18

(18) In order to ensure that the Union’s financial interests linked to the Union’s macro-financial assistance are protected efficiently, Ukraine ~~should~~must take appropriate measures relating to the prevention of, and fight against, fraud, corruption and any other irregularities linked to the assistance. In addition, ~~provision should~~in the light of the fact that the support package will amount to at least EUR 11 billion for the period 2014-2020, provision must be made for the Commission to carry out checks and for the Court of Auditors to carry out audits.

Amendment 13 #

Proposal for a decision
Recital 18

(18) In order to ensure that the Union’s financial interests linked to the Union’s macro-financial assistance are protected efficiently, Ukraine ~~should~~must take appropriate measures relating to the prevention of, and fight against, fraud, corruption and any other irregularities linked to the assistance. In addition, provision ~~should~~must be made for the Commission and OLAF to carry out checks and for the Court of Auditors to carry out audits.

Amendment 14 #

Proposal for a decision
Recital 20

(20) The amounts of the provision required for macro-financial assistance ~~should~~must be consistent with the budgetary appropriations provided for in the multi- annual financial framework.

Amendment 15 #

Proposal for a decision
Recital 21

(21) The Union's macro-financial assistance ~~should~~must be managed by the Commission. In order to ensure that the European Parliament and the Council are able to follow the implementation of this Decision, the Commission ~~should~~must regularly inform them of developments relating to the assistance and provide them with relevant documents.

Amendment 16 #

Proposal for a decision
Recital 21

Amendment 17 #

Proposal for a decision
Recital 23

(23) The Union's macro-financial assistance ~~should~~must be subject to economic policy conditions, to be laid down in a Memorandum of Understanding. In order to ensure uniform conditions of implementation and for reasons of efficiency, the Commission ~~should be empowered to~~must negotiate such conditions with the Ukrainian authorities under the supervision of the committee of representatives of the Member States in accordance with Regulation (EU) No 182/2011. Under that Regulation, the advisory procedure ~~should~~must, as a general rule, apply in all cases other than as provided for in that Regulation. Considering the potentially important impact of assistance of more than EUR 90 million, ~~it is appropriate that~~ the examination procedure must be used for operations above that threshold. Considering the amount of the Union's macro-financial assistance to Ukraine, the examination procedure ~~should~~must apply to the adoption of the Memorandum of Understanding, and to any reduction, suspension or cancellation of the assistance,

Amendment 18 #

Proposal for a decision
Recital 23

(23) The Union's macro-financial assistance ~~should~~must be subject to economic policy conditions, to be laid down in a Memorandum of Understanding. In order to ensure uniform conditions of implementation and for reasons of efficiency, the Commission should be empowered to negotiate such conditions with the Ukrainian authorities under the supervision of the committee of representatives of the Member States in accordance with Regulation (EU) No 182/2011. Under that Regulation, the advisory procedure should, as a general rule, apply in all cases other than as provided for in that Regulation. Considering the potentially important impact of assistance of more than EUR 90 million, ~~it is appropriate that~~ the examination procedure must be used for operations above that threshold. Considering the amount of the Union's macro-financial assistance to Ukraine, the examination procedure ~~should~~must apply to the adoption of the Memorandum of Understanding, and to any reduction, suspension or cancellation of the assistance,

Amendment 19 #

Proposal for a decision
Recital 23

(23) The Union's macro-financial assistance should be subject to economic policy conditions, to be laid down in a Memorandum of Understanding. In order to ensure uniform conditions of implementation and for reasons of efficiency, the Commission should be empowered to negotiate such conditions with the Ukrainian authorities under the supervision of the committee of representatives of the Member States in accordance with Regulation (EU) No 182/2011. Under that Regulation, the advisory procedure should, as a general rule, apply in all cases other than as provided for in that Regulation. Considering the potentially important impact of assistance of more than EUR 90 million, it is appropriate that the examination procedure be used for operations above that threshold. Considering the amount of the Union's macro-financial assistance to Ukraine, the examination procedure ~~should~~must apply to the adoption of the Memorandum of Understanding, and to any reduction, suspension or cancellation of the assistance,

Amendment 2 #

Proposal for a decision
Recital 3

(3) The ~~violation of Ukraine's sovereignty and territorial integrity and the resulting~~ military conflict haves had damaging effects on Ukraine's already precarious economic and financial stability. Ukraine is facing a difficult balance of payments and liquidity position linked to receding confidence and concomitant capital flight, as well as a worsening fiscal situation as a result of the direct budgetary cost of the conflict, a deeper than expected recession and the loss of fiscal revenues from the areas controlled by the separatists. At the same time, pre- existing structural weaknesses and budgetary and external- financial vulnerabilities have also contributed to the deterioration of the economic situation.

Amendment 20 #

Fabio Massimo CASTALDO

Proposal for a decision
Recital 23 a (new)

(23a) High levels of corruption among Ukraine's top officials represent a major obstacle for foreign investment in the country. The private business interests of Ukrainian oligarchs have been influential in policy-making processes, forcing SMEs out of the market,

Amendment 21 #

Proposal for a decision
Article 1 – paragraph 1

1. The Union shall make macro-financial assistance available to Ukraine ("the Union's macro-financial assistance") of a maximum amount of EUR 1.8 billion, with a view to supporting Ukraine's economic stabilisation and a substantive reform agenda. The assistance shall contribute to covering Ukraine's balance of payments needs as identified in the IMF programme.

Amendment 22 #

Proposal for a decision
Article 1 – paragraph 2

2. The full amount of the Union's macro- financial assistance shall be provided to Ukraine in the form of loans. The Commission shall be empowered on behalf of the Union to borrow the necessary funds on the capital markets or from financial institutions and to on-lend them to Ukraine. The loans shall have a maximum maturity of 150 years.

Amendment 23 #

Fabio Massimo CASTALDO

Proposal for a decision
Article 1 – paragraph 3

3. The release of the Union's macro- financial assistance shall be managed by the Commission in a manner consistent with the agreements or understandings reached between the International Monetary Fund (IMF) and Ukraine, and with the key principles and objectives of economic reforms set out in the EU- Ukraine Association Agreement, which requires that the preferential treatment granted to Ukraine is conditional upon Ukraine abstaining from introducing new duties, and the EU-Ukraine Association Agenda agreed under the European Neighbourhood Policy (ENP). The Commission shall regularly inform the European Parliament and the Council of developments regarding the Union's macro-financial assistance, including disbursements thereof, and shall provide those institutions with the relevant documents in due time.

Amendment 24 #

Proposal for a decision
Article 1 – paragraph 5

5. Where the financing needs of Ukraine decrease ~~fundamentally~~ during the period of the disbursement of the Union's macro- financial assistance, compared to the initial projections, the Commission, acting in accordance with the examination procedure referred to in Article 7(2), shall ~~redu~~suspend or cancel the a~~mount of the assistance or suspend or cancel it.~~ ssistance. Should Ukraine's financing needs be greater, an increase in financial assistance shall not be permitted under any circumstances.

Amendment 25 #

Angel DZHAMBAZKI

Proposal for a decision
Article 2 – paragraph 1

1. A pre-condition for granting the Union'’s macro financial assistance shall be that Ukraine respects effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and guarantees respect for human rights throughout its territory and for all its citizens, irrespective of whether they belong to a minority.

Amendment 26 #

Fabio Massimo CASTALDO

Proposal for a decision
Article 2 – paragraph 1

1. A pre-condition for granting the Union's macro financial assistance shall be that Ukraine respects effective democratic mechanisms – including a multi-party parliamentary system and the implementation of the anti-corruption legislation as amended – and the rule of law, and guarantees respect for human rights.

Amendment 27 #

Proposal for a decision
Article 2 – paragraph 1

1. A pre-condition for granting the Union's macro financial assistance shall be that Ukraine ~~respect~~ensures effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and guarantees respect for human rights.

Amendment 28 #

Ivan JAKOVČIĆ

Proposal for a decision
Article 2 – paragraph 1

1. A pre-condition for granting the Union's macro financial assistance shall be that Ukraine respects effective democratic mechanisms, including a multi-party parliamentary system, fundamental rights and the rule of law, and guarantees respect for human rights.

Amendment 29 #

Angel DZHAMBAZKI

Proposal for a decision
Article 2 – paragraph 2

2. The Commission and the European External Action Service shall monitor the fulfilment of this pre-condition throughout the life-cycle of the Union'’s macro- financial assistance and, in the event of any irregularities, shall inform the European Parliament and the Council accordingly.

Amendment 3 #

Proposal for a decision
Recital 6

(6) The Union’s macro-financial assistance ~~should be~~must be considered an exceptional financial instrument of untied and undesignated balance-of-payments support, which aims at addressing the beneficiary’s immediate external financing needs and ~~should~~must underpin the implementation of a policy programme containing strong immediate adjustment and structural reform measures designed to improve the balance-of- payments position in the short term.

Amendment 30 #

Proposal for a decision
Article 3 – paragraph 3

3. The detailed financial terms of the Union's macro-financial assistance shall be laid down in a Loan Agreement to be agreed between the Commission and the Ukrainian authorities. The European Parliament and the Council, in their capacity as the budgetary authority, shall be notified of that agreement.

Amendment 31 #

Proposal for a decision
Article 3 – paragraph 4

4. The Commission shall verify at regular intervals that the conditions in Article 4(3) continue to be met, including whether the economic policies of Ukraine are in accordance with the objectives of the Union's macro-financial assistance. In so doing, the Commission shall coordinate closely with the IMF and the World Bank, and~~, where necessary,~~ with the European Parliament and the Council in their capacity as the budgetary authority.

Amendment 32 #

Proposal for a decision
Article 3 – paragraph 4

4. The Commission shall verify at regular intervals that the conditions in Article 4(3) continue to be met, including whether the economic policies of Ukraine are in accordance with the objectives of the Union's macro-financial assistance. In so doing, the Commission shall coordinate closely with the IMF ~~and~~, the World Bank, ~~and, where necessary, with~~ the European Parliament and the Council.

Amendment 33 #

Proposal for a decision
Article 4 – paragraph 3 – subparagraph 1 – introductory part

The Commission shall decide on the release of ~~the~~each individual instalments subject to the fulfilment of all of the following conditions:

Amendment 34 #

Proposal for a decision
Article 4 – paragraph 5

5. The Union's macro-financial assistance shall be disbursed to the National Bank of Ukraine. Subject to provisions to be agreed in the Memorandum of Understanding, including a confirmation of residual budgetary financing needs, the Union funds may be transferred to the Ukrainian Ministry of Finance as the final beneficiary.

Amendment 35 #

Proposal for a decision
Article 5 – paragraph 2

2. ~~Where the circumstances permit, and if Ukraine so requests, the Commission may take the steps necessary to ensure that a~~An early repayment clause ishall be included in the loan terms and conditions ~~and that it is~~; it must be matched by a corresponding clause in the terms and conditions of the borrowing operations.

Amendment 36 #

Proposal for a decision
Article 5 – paragraph 2

2. ~~Where the circumstances permit, and if Ukraine so requests, t~~The Commission ~~may~~shall take the steps necessary to ensure that an early repayment clause is included in the loan terms and conditions and that it is matched by a corresponding clause in the terms and conditions of the borrowing operations.

Amendment 37 #

Proposal for a decision
Article 5 – paragraph 3

3. Where circumstances permit an improvement of the interest rate of the loan and if Ukraine so requests, the Commission may decide to refinance all or part of its initial borrowings or may restructure the corresponding financial conditions. Refinancing or restructuring operations shall be carried out in accordance with paragraphs 1 and 4 and shall not have the effect of extending the maturity of the borrowings concerned or of increasing the amount of capital outstanding at the date of the refinancing or restructuring.deleted

Amendment 38 #

Proposal for a decision
Article 5 – paragraph 3

3. Where circumstances permit an improvement of the interest rate of the loan ~~and if Ukraine so requests~~, the Commission may decide to refinance all or part of its initial borrowings or may restructure the corresponding financial conditions. Refinancing or restructuring operations shall be carried out in accordance with paragraphs 1 and 4 and shall not have the effect of extending the maturity of the borrowings concerned or of increasing the amount of capital outstanding at the date of the refinancing or restructuring.

Amendment 39 #

Proposal for a decision
Article 6 – paragraph 3 – point a

(a) ensuring that Ukraine, in consultation with the Commission and OLAF, regularly checks that financing provided from the budget of the Union has been properly used, takes appropriate measures to prevent irregularities and fraud, and, if necessary, takes legal action to recover any funds provided under this Decision that have been misappropriated;

Amendment 4 #

Proposal for a decision
Recital 10

(10) ~~Given that~~Though Ukraine is a country covered by the ENP, it ~~should be considered to be eligible to receive the Union's macro-financial assistanc~~must be ensured that the funds offered can also be used there. Particularly in the light of the conflicts in eastern Ukraine, it is doubtful whether the country remains as eligible as it was when the initial ENP evaluation was made.

Amendment 40 #

Angel DZHAMBAZKI

Proposal for a decision
Article 8 – paragraph 1 – point а a (new)

(аа) indicate whether the conditions set out in Article 4(3) have been met;

Amendment 5 #

Proposal for a decision
Recital 11

(11) Given that there is still a significant residual external financing gap in Ukraine's balance of payments over and above the resources provided by IMF and other multilateral institutions, the Union macro- financial assistance to be provided to Ukraine ("the Union's macro-financial assistance") is, under the current exceptional circumstances, considered to be an appropriate response to Ukraine's request to support economic stabilisation in conjunction with the IMF programme. The Union's macro-financial assistance would support the economic stabilisation and the structural reform agenda of Ukraine in the medium term only, supplementing resources made available under the IMF's financial arrangement.

Amendment 6 #

Proposal for a decision
Recital 13

(13) The determination of the amount of the Union's macro-financial assistance is based on a complete quantitative assessment of Ukraine's residual external financing needs, and takes into account its capacity to finance itself with its own resources, in particular the international reserves at its disposal. The Union's macro- financial assistance ~~should~~must complement the programmes and resources provided by the IMF and the World Bank. The determination of the amount of the assistance also takes into account expected financial contributions from multilateral donors and the need to ensure fair burden sharing between the Union and other donors, as well as the pre-existing deployment of the Union's other external financing instruments in Ukraine and the added value of the overall Union involvement.

Amendment 7 #

Proposal for a decision
Recital 15

(15) ~~The Union's macro-financial assistance should support the Union's external policy towards Ukraine.~~ Commission services and the European External Action Service ~~should~~must work closely together throughout the macro- financial assistance operation in order to coordinate, and to ensure the consistency of, Union external policy.

Amendment 8 #

Proposal for a decision
Recital 16

(16) The Union's macro-financial assistance ~~should~~must support Ukraine's commitment to values shared with the Union, including democracy, the rule of law, good governance, respect for human rights, sustainable development and poverty reduction, as well as its commitment to the principles of open, rule- based and fair trade.

Amendment 9 #