Reforms Required for EU Financial Assistance
The updated Ukraine Plan, which mandates that Ukraine complete 25 reforms to unlock over €10 billion in EU funding, received preliminary approval from EU ambassadors last week. The EU Council is expected to finalize approval via written procedure on July 30. This support is part of the broader Ukraine Facility, a €90 billion package designed to stabilize Ukraine’s economy and promote structural improvements.
The first tranche of €2.86 billion will be released once Ukraine implements seven specific measures. These include:
- enactment of legislation ensuring transparent and merit-based selection of senior prosecutors
- implementation of simplified insolvency procedures for small and medium-sized businesses
- improvement of the state electronic register of farm holdings
'These measures comprise enacting laws for transparent senior prosecutor selection, simplified SME insolvency, and upgrades to the farm registry, reports European Pravda.'
A larger tranche of €7.5 billion is scheduled for 2026, contingent on fulfilling 18 additional reforms. These include:
- appointment of independent supervisory boards for state-owned enterprises
- deployment of an updated IT system for enforcing court rulings
- investments in education and healthcare
- provision of housing for veterans with disabilities, families of fallen defenders, and internally displaced persons
'Ukraine may also secure a €7.5 billion tranche in 2026 by completing 18 reforms or steps, according to European Pravda.'
The updated plan also outlines 34 additional reforms and steps that could unlock a further €5 billion for Ukraine in 2026, marking a critical phase for the country’s economic stabilization.
Earlier reports noted that Ukraine will receive EU funds for military operations even if Hungary and Slovakia continue blocking the €90 billion credit. Separately, the United Kingdom has financed new equipment for Ukraine’s energy grid, highlighting sustained international support during this difficult period.
Implementing these reforms is vital for Ukraine not only to access EU financial aid but also to strengthen institutional capacity and economic stability. Success could also enhance confidence among international partners, opening doors for additional investment and cooperation.
As Ukraine navigates these critical reforms, it's also worth noting that the Ukrainian government has recently approved a mechanism for utilizing a substantial €60 billion fund from the EU for military support. This funding not only emphasizes the EU's commitment to Ukraine's defense but also highlights the interconnectedness of financial assistance and military aid during this pivotal time. For more details, read about the approval of the €60 billion weapon fund.