Economic and Financial Affairs

This is part of an MFA package of up to €9 billion, announced in the Commission's 18 May Communication on Ukraine Relief and Reconstruction and endorsed by the European Council of 23-24 June 2022. It is part of the extraordinary effort by the EU, alongside the international community, to help Ukraine address its immediate financial needs following the unprovoked and unjustified aggression by Russia. The Commission already disbursed the first €1 billion of this exceptional MFA package on 1 and 2 August 2022. This followed a previous €1.2 billion emergency MFA loan paid out to Ukraine in the first half of this year. With the most recent payment, the total MFA support disbursed to Ukraine since the Russian attack on February 24 has reached €4.2 billion. The funds have been made available to Ukraine in the form of highly concessional loans, with longer-term maturities than under regular MFAs and on highly favourable terms. The assistance supports Ukraine's macroeconomic stability and overall resilience in the context of Russia's military aggression and the ensuing economic challenges. In a further show of solidarity, the EU budget will for the first time cover the interest costs on this loan, at least for the current multiannual financial framework.

The summit is the European Commission’s flagship annual event on sustainable investment. It brings together decision makers and stakeholders to discuss key issues and challenges. It was inaugurated in 2021 following the launch of the European Green Deal. The objective of the European Green Deal is for Europe to become the first climate-neutral continent by 2050. The European Green Deal Investment Plan will unlock investments and finance to underpin this endeavour. Building Tomorrow, the second edition of the summit, will be an opportunity to show unity in accelerating the transition towards climate neutrality. High-level speakers will include Ursula von der Leyen, President of the European Commission; Justin Trudeau, Prime Minister of Canada; António Guterres, Secretary-General of the United Nations; and Janet L. Yellen, U.S. Secretary of the Treasury. Register now to attend the event as an online participant.

The announcement was made alongside Latvia's Finance Minister, Jānis Reirs. Latvia is to receive €201 million in grants (net of pre-financing). Payments under the RRF are performance-based and contingent on the implementation of the investments and reforms described in Latvia's recovery and resilience plan. On 17 June 2022, Latvia submitted to the Commission its first request for a payment of €201 million under the RRF. The request covered nine milestones concerning reforms and investments in the areas of the minimum income support system, broadband infrastructure, educational institutions' infrastructure and remote learning. Other areas covered are public procurement, the prevention of money laundering and terrorist financing, as well as the construction of low-rent dwellings. On 29 July 2022, the Commission endorsed a positive preliminary assessment of Latvia's request for payment. The favourable opinion of the Economic and Financial Committee on the payment request paved the way for the Commission to adopt a final decision on the disbursement of the funds.

During this visit, agreements on the first four InvestEU projects in Italy were signed. The projects concern water sustainability and wastewater treatment in the Lombardy Region, as well as support to small and medium-sized businesses in the northeast of Italy for their investments in innovation, sustainability, and the cultural and creative activities. InvestEU will also boost the circular economy and decarbonisation by supporting a fund investing in related projects. Finally, InvestEU will support the investments of innovative small and medium-sized businesses to support their green and digital transition. In addition, the Commission signed a guarantee agreement with Cassa Depositi e Prestiti Equity, making this the first such agreement signed under InvestEU with a national promotional bank to support investments, with more agreements to follow.

Shift4Good focuses on sustainable mobility and the circular economy, with a fundraising target of €300 million. A first closing of the fund at more than €100 million euros was announced on 18 October. Shift4Good will invest in around 30 start-ups over the next five years. These investments aim to accelerate their development, enabling them to become international champions and thus contribute, through their innovations, to reducing the carbon footprint of the mobility sector. The first two investments will be announced in October. The InvestEU program provides the EU with crucial long-term financing to support a sustainable recovery by mobilizing significant public and private funds. It contributes to major European priorities, such as the European Green Deal and the digital transition. The InvestEU Fund budget guarantee of €26.2 billion is expected to leverage at least €372 billion in additional investment.

The €550 million disbursed this week will help the Ukrainian government to cover urgent financing needs, restore some of the most critical infrastructure that has been damaged; resume the provision of municipal services; including transport services and vital infrastructure networks; and support cities in the process of restoring basic functions and basic services for the population. The first tranche of €500 million was paid out on 14 September. These tranches amount to €1.05 billion and are part of the second €1.59 billion package of the EIB's Ukraine Solidarity Urgent Response, developed in close cooperation with the European Commission. The remaining €540 million will be used for resuming implementation of existing EIB-financed projects in Ukraine, as they progress.

The conference “Towards a legislative framework enabling a digital euro for citizens and businesses” organised by the European Commission and the European Central Bank will take place on 7 November 2022. Speakers from across the world will discuss regulatory and policy aspects of a Digital Euro, ahead of a legislative proposal by the European Commission announced for early 2023. High-level speakers include Christine Lagarde, Paschal Donohoe, Valdis Dombrovskis, Paolo Gentiloni, Mairead McGuinness, Christian Lindner, Ana Botín and many more.

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