How the government, parliament and president are exposing Ukraine to the loss of billions of euros
31 July 17:40
The European Union has reduced the tranche of macro-financial assistance to Ukraine by €1.4 billion. Instead of the planned €4.48 billion, Kyiv will receive only €3.05 billion. The reason is the failure to implement the reforms promised under the Ukraine Facility program. This is the first time since the beginning of a full-scale war that the EU has publicly “fined” Ukraine for failing to fulfill its obligations. This was reported by Yevropeiska Pravda, according to "Komersant Ukrainian".
Although initially, the public linked the reduction of the tranche to the attack on the anti-corruption infrastructure, the European Commission emphasized that the decision was not related to the recent events around NABU and SAPO. The government submitted documents confirming delays in reforms to Brussels in June.
The reason for the fine is the failure to fulfill three of the four indicators of the Ukraine Facility program, in particular
- the law on reforming the territorial organization of the executive branch has not been adopted;
- failure to launch the selection of HACC judges;
- the requirements for vocational education have not been met.
Only one of the failed indicators – the law on reforming the ARMA agency – was fulfilled in July. This will allow Ukraine to receive an additional 500 million euros.
The EU anticipated that some reforms would move slowly, so it gave Ukraine 12 months to “catch up.” But four months have already been lost, and progress is minimal.
Experts warn that if the Rada continues to delay, the next tranches will also be cut. In the second quarter of 2025, about another billion euros are at risk. The problem is further complicated by the recent resignation of the government, as all government bills will have to be submitted anew.
The pace of reforms, which was high in 2022, has almost stopped. The EU can no longer ignore the delays. The joint inaction of the authorities-the president, the government, and the parliament-has already cost Ukraine billions, and the losses will only grow if the sabotage continues.
