[ParlTrack]

Proposal for a decision
Title 1

Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ~~providing further~~suspending macro-financial assistance to Ukraine

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Recital 2

(2) Since spring 2014, Ukraine has embarked on a~~n ambitious~~ reform programme aiming to stabilise its economy and improve the livelihoods of its citizens. Ukraine and the Union have jointly defined a reform agenda (the Association Agenda, which was last updated in March 2015). The fight against corruption as well as constitutional, electoral and judicial reforms are among the issues being touted as top priorities on the agenda.

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Recital 11

(11) Given that a residual external financing gap remains in Ukraine’s balance of payments over and above the resources provided by the IMF and other multilateral institutions, the Union macro-financial assistance to be provided to Ukraine is, under the current exceptional circumstances, considered to be a~~n appropriate response to Ukraine’s request for support to its economic stabilisation, in conjunction with the IMF programme. The Union’s macro-financ~~ Union subsidy intended to support a corrupt regime responsible for ruining the country, in particular by destroying its industrial bas~~sistance would support the economic stabilisation and the structural reform agenda of Ukraine, supplementing resources made available under the IMF’s financial arrangement~~e. The Union is thus once again revealing its true colours where human rights and democracy are concerned.

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

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 support~~, which will not be possible owing to the steep decline in the country’s industrial production since 2013 and the break ing its ~~economic and social development~~trade ties with Russia, its leading customer and the country with which its industry was integrated, and whereas the association agreement has essentially led to an increase in all the economic deficits.

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

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; whereas that objective cannot be achieved because Ukraine has broken its trade relations with its most important customer, Russia, and whereas that has destroyed its industrial base.

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

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

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

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, but that policy has to be overhauled in the wake of the political fiasco and economic and social disaster resulting, for the most part, from direct or indirect Union support for the Maidan coup in February 2014 and for those that seized power as a result.

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Recital 16 a (new)

(16a) Serious human rights violations were noted in the 18th report of the UN High Commissioner for Human Rights, such as the systematic torture of opponents under the pretext of combating separatism, the existence of secret detention centres, and murders of journalists such as Oles Buzina, the perpetrators of which have still not been brought to justice.

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Recital 16 b (new)

(16b) The current Ukrainian Government and the Verkhovna Rada are blocking the implementation of the Minsk agreements by failing to adopt the legislation required under the agreements (the law on special status, amendments to the Constitution), by making negative statements about the full implementation of the agreements (e.g. statements by the Attorney-General objecting to the general amnesty provided for under point 5 of the package of measures for the implementation of the Minsk agreements1a), and by imposing an economic and social blockade against the Donetsk and Luhansk regions, in breach of point 8 of the package of measures for the implementation of the Minsk agreements.

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Recital 16 c (new)

(16c) Political pressure is being brought to bear in an effort to ensure that inquiries into mass murders, whether in Kiev during February 2014 or Odessa on 2 May 2014, are not concluded.

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Recital 16 d (new)

(16d) The fact that President Porochenko – despite his campaign commitments to the contrary – has still not sold his industrial and commercial shares casts serious doubt on whether corruption is actually being tackled at all, given the multiple conflicts of interest at the highest echelons of the Ukrainian State.

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Recital 19

~~(19) Release of the Union’s macro- financial assistance is without prejudice to the powers of the European Parliament and the Council as budgetary authority.~~deleted

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Recital 20

~~(20) The amounts of provisioning required for macro-financial assistance should be consistent with the budgetary appropriations provided for in the multiannual financial framework.~~deleted

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Recital 22

(22) In order to ensure uniform conditions for the implementation of this Decision, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council.11 . _________________ 11 Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).deleted

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Recital 23

(23) The Union's macro-financial assistance is~~hould 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 Unconditions on economic policy and upholding human rights. As Ukraine is failing to meet those condition'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,~~must be suspended.

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Article 1 – paragraph 1

1. The Union shall ~~make~~suspend its macro- financial assistance ~~of a maximum amount of EUR 1 billion available~~ to Ukraine (“the Union’s macro-financial assistance”), 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 indefinitely.

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

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 average maturity of 15 years.deleted

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Article 1 – paragraph 3 – subparagraph 1

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, including the DCFTA, agreed under the European Neighbourhood Policy (ENP).deleted

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Article 1 – paragraph 4

4. The Union’s macro-financial assistance shall be made available for a period of two and a half years, starting from the first day after the entry into force of the Memorandum of Understanding referred to in Article 3(1).deleted

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Article 1 – paragraph 5

5. If 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 reduce the amount of the assistance or suspend or cancel it.deleted

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Article 2 – paragraph 1

1. ~~A pre-condition for granting the Un~~Macro-financial assistance may be restored once Ukraine has: – taken substantive decision’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 righto stamp out conflicts of interest at the highest echelons of the State; – passed legislation, including constitutional amendments, making it possible to implement points 4 to 8 of the package of measures for the implementation of the Minsk agreements, as part of a constructive dialogue with the de facto authorities in Donetsk and Luhansk; – brought to justice those responsible for the politically motivated murders of Oles Buzina and Pavel Sheremet, and the mass murders in Kiev and Odessa in February and May 2014; – brought to justice those responsible for torture and illegal detention in the east of the country; – dissolved the special battalions, ‘national militia’, ‘volunteer corps’ and other paramilitary groups exerting constant armed pressure on institutions, including the courts.

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Article 2 – paragraph 2

2. The ~~Commission and the~~ European External Action Service ~~shall monitor the fulfilment of this pre-c~~, together with the diplomatic services of the Member States, shall mondit~~ion throughout the life-cycle~~or the implementation of the Uncondition’s ~~macro-fina~~laid down in paragraph 1 and report to the Councial as~~sistance~~ soon as they are met.

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Article 2 – paragraph 3

3. Paragraphs 1 and 2 of this Article shall be applied in accordance with Council Decision 2010/427/EU12. _________________ 12Council Decision 2010/427/EU of 26 July 2010 establishing the organisation and functioning of the European External Action Service (OJ L 201, 3.8.2010, p. 30).deleted

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

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 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 includePresidency of the Council shall agree with the Ukrainian authorities on 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 laid down in Article 2.

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Article 3 – paragraph 2

2. The conditions referred to in paragraph 1 shall aim, in particular, at enhancing 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.deleted

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

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 concluded between the Commission and the Ukrainian authorities.~~deleted

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Article 3 – paragraph 4

4. The Commission shall verify, at regular intervals, that the conditions referred to 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.deleted

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Article 4

1. Subject to the conditions referred to in paragraph 3, the Union’s macro-financial assistance shall be made available by the Commission in two loan instalments. The size of each instalment shall be laid down in the Memorandum of Understanding referred to in Article 3. 2. The amounts of the Union’s macro- financial assistance shall be provisioned, where required, in accordance with Council Regulation (EC, Euratom) No 480/2009.13 . 3. The Commission shall decide on the release of the instalments subject to the fulfilment of all of the following conditions: (a) the pre-condition set out in Article 2; (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; and (c) the satisfactory implementation of the economic policy and financial conditions agreed in the Memorandum of Understanding. The release of the second instalment shall not, in principle, take place earlier than three months after the release of the first instalment. 4. Where the Commission finds that the conditions laid down in paragraph 3 are not met, it shall temporarily suspend or cancel the disbursement of the Union’s macro-financial assistance. In such cases, it shall inform the European Parliament and the Council of the reasons for that suspension or cancellation. 5. The Union’s macro-financial assistance shall be disbursed to the National Bank of Ukraine. Subject to the 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. _________________ 13Council Regulation (EC, Euratom) No 480/2009 of 25 May 2009 establishing a Guarantee Fund for external actions (OJ L 145, 10.6.2009, p. 10).Article 4 deleted

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Article 5

1. The borrowing and lending operations related to the Union’s macro-financial assistance shall be carried out in euro using the same value date and shall not involve the Union in the transformation of maturities, or expose it to any exchange or interest rate risk, or to any other commercial risk. 2. Where the circumstances permit, and if Ukraine so requests, the Commission may 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. 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. 4. All costs incurred by the Union which relate to the borrowing and lending operations under this Decision shall be borne by Ukraine. 5. The Commission shall inform the European Parliament and the Council of developments in the operations referred to in paragraphs 2 and 3.Article 5 deleted

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Article 6

1. The Union’s macro-financial assistance shall be implemented in accordance with Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council1415Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of Regulation (EU, Euratom) No 966/2012 on the financial rules applicable to the general budget of the Union (OJ L 362, 31.12.2012, p. 1). 2. The Union’s macro-financial assistance shall be implemented under direct management. 3. The Loan Agreement referred to in Article 3(3) shall contain provisions: (a) ensuring that Ukraine 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; (b) ensuring the protection of the Union’s financial interests, in particular providing for specific measures in relation to the prevention of, and fight against, fraud, corruption and any other irregularities affecting the Union’s macro-financial assistance, in accordance with Council Regulation (EC, Euratom) No 2988/95161718and Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council (c) expressly authorising the Commission, including the European Anti-Fraud Office, or its representatives to carry out checks, including on-the-spot checks and inspections; (d) expressly authorising the Commission and the Court of Auditors to perform audits 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; (e) ensuring that the Union is entitled to early repayment of the loan where it has been established that, in relation to the management of the Union’s macro- financial assistance, Ukraine has engaged in any act of fraud or corruption or any other illegal activity detrimental to the financial interests of the Union. 4. Before the implementation of the Union’s macro-financial assistance, the Commission shall assess, by means of an operational assessment, the soundness of Ukraine’s financial arrangements, the administrative procedures, and the internal and external control mechanisms which are relevant to the assistance. _________________ 14 Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1). 15and Commission Delegated Regulation (EU) No 1268/2012. 16 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.1995, p. 1). 17, Council Regulation (EC, Euratom) No 2185/96 18Council Regulation (EC, Euratom) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission to protect the Communities’ financial interests against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2).Article 6 deleted Council Regulation (EC, Euratom) No

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Article 7

1. The Commission shall be assisted by a committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011. 2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.Article 7 deleted

2018/04/25
Committee: AFET

Jean-Luc SCHAFFHAUSER

Proposal for a decision
Article 8

1. By 30 June of each year, the Commission shall submit to the European Parliament and to the Council a report on the implementation of this Decision in the preceding year, including an evaluation of that implementation. The report shall: (a) examine the progress made in implementing the Union’s macro- financial assistance; (b) assess the economic situation and prospects of Ukraine, as well as progress made in implementing the policy measures referred to in Article 3(1); (c) indicate the connection between the economic policy conditions laid down in the Memorandum of Understanding, Ukraine’s on-going economic and fiscal performance and the Commission’s decisions to release the instalments of the Union’s macro-financial assistance. 2.Article 8 deleted

2018/04/25
Committee: AFET

32 Amendments of Jean-Luc SCHAFFHAUSER related to 2018/0058(COD)

ParlTrack - 2011-2024