EU increases the European Peace Facility to €7.979 billion

The Council adopted a decision increasing the financial ceiling of the European Peace Facility (EPF) to €7.979 billion (in current prices) until 2027, ensuring that additional financial needs can be covered.

The European Council passed a decision increasing the financial ceiling of the European Peace Facility (EPF) used to fund projects and programs under the common foreign and security policy (CFSP) to €7.979 billion until 2027, reported Ukrinform with reference to the press release published on the website of the European Council.

“The Council adopted a decision increasing the financial ceiling of the European Peace Facility (EPF) to €7.979 billion (in current prices) until 2027, ensuring that additional financial needs can be covered. This decision implements the political agreement reached on 12 December 2022, when the Council decided to increase the overall EPF financial ceiling by €2 billion (in 2018 prices) in 2023, and allow for the possibility of a further increase at a later stage (up to €5.5 billion in 2018 prices until 2027),” the press release reads.

The Council also passed a separate decision to set a financial reference amount for the common costs of the EU Crisis Management Military Exercise 2023 (MILEX 23) at €5 million and introduce more flexibility in the collection and use of financial contributions from member states and in their use by the facility.

“The European Peace Facility has now become an integral part of the EU’s support to promote peace and security globally. Today’s decision brings the financial ceiling of the European Peace Facility to over €7.9 billion. Ensuring the financial sustainability of this instrument is crucial for our support not only to Ukraine, but also for our partners in other parts of Europe, Africa and the Middle East, as needs continue to arise,” commented Josep Borrell, High Representative for Foreign Affairs and Security policy.

As it was previously reported, the European Peace Facility was established in March 2021 to finance all common foreign and security policy (CFSP) actions relating to military and defence matters, with the aim of preventing conflict, preserving peace, and strengthening international security and stability.

In particular, the European Peace Facility allows the EU to finance actions designed to strengthen the capacities of non-EU countries and regional and international organisations in relation to military and defence matters.

EU member countries originally had an overall financial ceiling of €5 billion in 2018 prices for the period 2021-2027 for the EPF, but due to the Russian aggression against Ukraine, changes had to be made. Recently, the EU announced additional funding of €1 billion for urgent supply of artillery ammunition to Ukraine and another €1 billion for production of ammunition at plants in Europe to replenish the stocks of the EU countries and continue supplies to Ukraine.

The EPF is also used to fund the EU’s European Military Assistance Mission in support of Ukraine (EUMAM-Ukraine), providing training to 30,000 Ukrainian servicemen by the end of 2023.

UkrInform