Brussels: The Council of Economic and Financial Affairs (ECOFIN), under the Cypriot Presidency, has agreed on a package of proposals for a 90 billion euro loan to Ukraine, intended to address the country's financing needs for the years 2026 and 2027. The agreement, reached in collaboration with the European Parliament and the European Commission, outlines that the disbursement of funds will begin in the second quarter of the current year.
According to Cyprus News Agency, Finance Minister Makis Keravnos, during a press conference following the meeting, emphasized that the Cypriot Presidency prioritized the urgent financing of Ukraine, which has been impacted by Russian aggression. The ministers' discussions centered on the economic and financial repercussions of the Russian invasion, and they welcomed the agreement to provide support to Ukraine.
Keravnos also indicated that the Council approved amendments to Lithuania's Recovery and Resilience Plan, aiming to expedite its implementation. He highlighted that all Member States' Recovery and Resilience Plans have been approved, with disbursements totaling approximately 394 billion euros, which accounts for 68% of the total committed amount under the Recovery and Resilience Facility regulation.
In addition, he mentioned that, in light of strengthening defense spending, the national escape clause was activated for Austria for a four-year period. This measure is expected to help gradually increase defense expenditures while maintaining fiscal sustainability. Keravnos further announced that the Council adopted eight implementing decisions under the Security Action for Europe (SAFE), enabling the Commission to provide affordable long-term loans. These decisions will allow participating Member States to acquire modern defense equipment and enhance their defense readiness.
Lastly, he reported that the EU list of non-cooperative tax jurisdictions was updated, with Vietnam and the Turks and Caicos Islands added to the list, while Fiji, Samoa, and Trinidad and Tobago were removed.