Brussels, 1 February 2024

The European Council paid homage to former Commission President Jacques Delors, who passed away on 27 December 2023. He was a driving force behind the European project, and played a key role in building the European Union as we know it today.

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MULTIANNUAL FINANCIAL FRAMEWORK 2021-2027

The European Council reached agreement on the revision of the Multiannual Financial Framework (MFF) 2021-2027 as outlined herewith. All figures, unless otherwise specified, are in current prices.

Support for Ukraine

1. The European Council underlines the need to ensure, together with partners, stable, predictable and sustainable financial support for Ukraine for the period 2024-2027. To contribute to the recovery, reconstruction and modernisation of the country, foster social cohesion and progressive integration into the Union, with a view to possible future Union membership, a Ukraine Facility for the period 2024-2027 will be set up.

2. For the period 2024-2027, the sum of the overall resources made available from the Facility will not exceed EUR 50 billion, of which:

i) EUR 33 billion in the form of loans guaranteed by extending until 2027 the existing Union budget guarantee, over and above the ceilings, for financial assistance to Ukraine available until the end of 2027.

ii) EUR 17 billion in the form of non-repayable support, under a new thematic instrument the Ukraine Reserve, set up over and above the ceilings of the MFF 2021-27. Potential revenues could be generated under the relevant Union legal acts, concerning the use of extraordinary revenues held by private entities stemming directly from the immobilised Central Bank of Russia assets.

3. In order to optimise the use of the available amounts, unused commitment and payment appropriations under this instrument will be automatically carried over to the following year. The portion of the annual amount stemming from the previous year will be drawn on first.

4. The European Council stresses the need to foster Ukraine’s ownership of its recovery and reconstruction efforts by means of a Plan to be prepared by the Ukrainian Government that will set out the reform and investment agenda of Ukraine on its path towards EU accession. The widest possible participation in the overall Ukraine recovery and reconstruction effort from donors outside the European Union will be strongly encouraged even before the adoption of the Plan.

5. A precondition for the support for Ukraine under the Facility shall be that Ukraine continues to uphold and respect effective democratic mechanisms, including a multi-party parliamentary system, and the rule of law, and to guarantee respect for human rights, including the rights of persons belonging to minorities. In implementing the Facility, the Commission and Ukraine shall take all the appropriate measures to protect the financial interests of the Union, in particular regarding the prevention, detection and correction of fraud, corruption, conflicts of interests and irregularities.

6. The Council will play a key role in the governance of the Ukraine Facility. In this sense, a Council Implementing Decision shall be adopted by qualified majority for the adoption and amendments of the Ukraine Plan and for the approval and the suspension of payments based on the relevant assessments and proposals by the Commission.

7. On the basis of the Commission annual report on the implementation of the Ukraine Facility, the European Council will hold a debate each year on the implementation of the Facility with a view to providing guidance. If needed, in two years the European Council will invite the Commission to make a proposal for review in the context of the new MFF.

UKRAINE

31. The European Council recalls its previous conclusions and reaffirms the European Union’s unwavering commitment to continue to provide strong political, financial, economic, humanitarian, military and diplomatic support to Ukraine and its people for as long as it takes.

32. The European Council reiterates the determination of the European Union and Member States to continue providing timely, predictable and sustainable military support to Ukraine, notably through the European Peace Facility and the EU Military Assistance Mission, as well as through direct bilateral assistance by Member States, in line with Ukraine’s needs. It will keep the issue under review.

33. The European Council reviewed work in the Council on military support for Ukraine under the European Peace Facility and the proposed increase of its overall financial ceiling. It invites the Council to reach agreement by early March 2024 to amend Council Decision (CFSP) 2021/509 on the basis of the proposal of the High Representative for a Ukraine Assistance Fund and the proposed key modalities, taking into account suggestions by the Member States.

34. The European Council also reiterates the urgent need to accelerate the delivery of ammunition and missiles, notably in view of the commitment to provide Ukraine with one million rounds of artillery ammunition. It welcomes progress achieved and calls on Member States to explore all options to meet Ukraine’s needs and accelerate efforts to that end, including continued stock donations, redirection of existing orders and the placing of the necessary new orders, which will contribute to increasing European industry’s production capacity.

35. Military support and security commitments will be provided in full respect of the security and defence policy of certain Member States and taking into account the security and defence interests of all Member States.

36. The European Council will revert to the matter of security and defence, including Europe’s need to increase its overall defence readiness and further strengthen its defence technological and industrial base, at its next meeting in March 2024, with a view to agreeing on further steps to make the European defence industry more resilient, innovative and competitive.

37. The European Council welcomes the agreement reached on the Council Decision and Council Regulation concerning extraordinary revenues held by private entities stemming directly from Russia’s immobilised assets to support Ukraine.

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39. The European Council recalls its December 2020 conclusions on the application of the conditionality mechanism.