Decision 2020/701 - Providing macro‐financial assistance to enlargement and neighbourhood partners in the context of the COVID‐19 pandemic - Main contents
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Decision (EU) 2020/701 of the European Parliament and of the Council of 25 May 2020 on providing macro‐financial assistance to enlargement and neighbourhood partners in the context of the COVID‐19 pandemic| Legal instrument | Decision |
|---|---|
| Number legal act | Decision 2020/701 |
| Original proposal | COM(2020)163  |
| CELEX number i | 32020D0701 |
| Document | 25-05-2020; Date of signature |
|---|---|
| Publication in Official Journal | 27-05-2020; OJ L 165 p. 31-37 |
| Signature | 25-05-2020 |
| Effect | 28-05-2020; Entry into force Date pub. +1 See Art 9 |
| End of validity | 31-12-9999 |
27.5.2020 |
EN |
Official Journal of the European Union |
L 165/31 |
DECISION (EU) 2020/701 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 25 May 2020
on providing macro‐financial assistance to enlargement and neighbourhood partners in the context of the COVID‐19 pandemic
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 212(2) thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Acting in accordance with the ordinary legislative procedure (1),
Whereas:
(1) |
The COVID‐19 pandemic has very damaging effects on economic and financial stability in the enlargement and neighbourhood regions. Partners are currently facing a weak and rapidly worsening balance‐of‐payments and fiscal situation, with the economy moving into recession. There is a strong case for the Union to move quickly and decisively in support of those economies. This Decision therefore covers ten partners: the Republic of Albania, Bosnia and Herzegovina, Kosovo (*), Montenegro, the Republic of North Macedonia in the enlargement region; Georgia, the Republic of Moldova and Ukraine in the Eastern neighbourhood and the Hashemite Kingdom of Jordan and the Republic of Tunisia in the Southern neighbourhood (the ‘partners’). |
(2) |
The urgency of the assistance is related to the partners’ immediate need for funds in addition to those which will be provided through other Union instruments and by international financial institutions, Member States and other bilateral donors. This is necessary in order to allow short‐term policy space for the partners’ authorities to implement measures to counter the economic fallout from the COVID‐19 pandemic. |
(3) |
The authorities of each partner and the International Monetary Fund (IMF) have already agreed on a programme that will be supported by a credit arrangement with the IMF or are expected to agree shortly on such a programme. |
(4) |
The Union’s macro‐financial assistance should be an exceptional financial instrument of untied and undesignated balance‐of‐payments support, which aims to address the beneficiary’s immediate external financing needs in tandem with a non‐precautionary IMF credit arrangement that is subject to an agreed programme of economic reforms. In the context of the COVID‐19 pandemic, the Union’s macro‐financial assistance should also be available to partners that benefit from emergency funding from the IMF, which can come without prior actions and/or conditionality, such as through the Rapid Financing Instrument. That assistance should therefore be shorter in duration, limited to two disbursements and underpin the implementation of a policy programme containing a limited set of reform measures. |
(5) |
Financial support from the Union to the partners is consistent with the Union’s enlargement and neighbourhood policies. |
(6) |
Given that the partners are either accession or pre‐accession partners, or covered by the European Neighbourhood policy, they are eligible to receive the Union’s macro‐financial assistance. |
(7) |
Given that the drastically worsening external financing needs of the partners are expected to be well above the resources that will be provided by the IMF and other multilateral institutions, the Union’s macro‐financial assistance to be provided to the partners is, under the current exceptional circumstances, considered to be an appropriate response to the partners’ requests to support economic stabilisation. The Union’s macro‐financial assistance would support economic stabilisation, supplementing resources made available under the IMF’s credit arrangement. |
(8) |
The Union’s macro‐financial... |
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