EU sets condition for Ukraine in exchange for €90 billion loan
Photo: Valdis Dombrovskis (Getty Images)
European Commissioner for Economy Valdis Dombrovskis said that requirements related to tax reform and mobilization of domestic revenues are being discussed within the conditions for providing macro-financial assistance to Ukraine, according to a press conference of the EU Economic and Financial Affairs Council (ECOFIN).
EU macro-financial program conditions
The European Union is considering including tax reform in the list of requirements for Ukraine to receive the next tranches under a credit program worth €90 billion.
This concerns part of the macro-financial assistance that is linked to the fulfillment of specific economic conditions.
Tax reform and budget revenues
According to EU representatives, one of the key points of discussion remains strengthening Ukraine’s internal budget sustainability.
In particular, the focus is on reforming the tax system and improving the efficiency of mobilizing domestic state revenues.
Negotiations ongoing
At the same time, officials in Brussels note that consultations with Ukraine are at an advanced stage.
However, the specific parameters and mechanisms of the future changes have not yet been agreed upon and remain under discussion between the parties.
European Commission position
EU Commissioner Valdis Dombrovskis emphasized that he cannot disclose details of the negotiation process, but confirmed that tax reform and issues related to domestic revenue mobilization are part of the overall package of requirements.
Quote from Valdis Dombrovskis
"So we're currently still in negotiations in very advanced stages with Ukrainian authorities on conditionality underpinning our macrofinancial assistance program, so I cannot now go into details of those negotiations, but domestic revenue mobilization is an important part of those negotiations, as is tax reform. But exact modalities and elements are still under discussion."
It is recalled that President of Ukraine Volodymyr Zelenskyy held talks with the President of the European Council António Costa, during which the parties discussed Ukraine’s EU integration.
Separately, during a visit to Yerevan on May 4, President Zelenskyy also held bilateral talks with Slovak Prime Minister Robert Fico.
