Amended proposal for a COUNCIL REGULATION amending Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021 to 2027
Date: 2026-01-14
Institutions: European Commission, Secretariat-General
Subjects: EU aid, Ukraine, budgetary procedure, commitment of expenditure, economic reform, economic stabilisation, financial management, general budget (EU), macro-financial assistance, multiannual financial framework

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 14.1.2026  COM(2026) 21 final/2 2025/3500 (APP)  Final version / 2 following the correction of the interinstitutional reference/acronym Amended proposal for a COUNCIL REGULATION amending Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021 to 2027  
 
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

• 
This  proposal  for  an  amendment  of  Regulation  (EU,  Euratom)  2020/20931  is  presented 
together  with  the  proposal  for  a  Regulation  establishing  the  Ukraine  Support  Loan  and 
amending Regulation (EU) 2024/792 establishing the Ukraine Facility2. 

Following  the  unprovoked  and  unjustified  Russian  invasion  of  Ukraine,  the  Union  has 
provided substantial support to Ukraine through a series of financial measures. Ukraine will 
require continued assistance, which should be delivered under the proposed new Regulation 
establishing the Ukraine Support Loan. 

The amendment of Regulation (EU, Euratom) 2020/2093 will extend the budgetary guarantee 
currently  applied,  as  a  rule,  to  loans  to  Ukraine  under  the  MFA+  instrument,3  the  Ukraine 
Facility4  and  the  MFA  to  Ukraine  under  the  Ukraine  Loan  Cooperation  Mechanism5  also 
covers the financial assistance to Ukraine under Regulation (EU) XXX/XXX of the European 
Parliament  and  of  the  Council.  That guarantee should ensure  that the  necessary  resources 
are always available 
its  financial 
to allow 
obligations towards its  creditors.  Accordingly,  if  the  Union  has  to  honour  repayment 
obligations  from  resources  of  the  Union’s  budget  -  in  the  case  a  beneficiary  state  fails  to 
provide the due payment on time – the necessary amounts would be mobilised over and above 
the  MFF  ceilings  up  to  the  limits  of  the  own  resources  ceiling  (from  the  so  called 
‘headroom’). 

time in  order 

to  meet  all 

the  Union 

in 

The budgetary coverage from the headroom should apply to financial assistance in the form of 
a  loan  to  Ukraine  of  an  amount  of  EUR  90  000  000  000  to  be  implemented  in  enhanced 
cooperation.  

Concessional support to Ukraine 

To provide concessional support to Ukraine and avoid adding pressures on Ukraine’s public 
finances,  the  Union  budget  will  cover  the  costs  arising  from  the  borrowing  for  a  loan  by 
providing  a  borrowing  costs  subsidy.  These  costs  include  debt  service  costs  (cost  of 
funding and costs of issuing and managing liquidity) and the associated administrative costs. 
The debt service costs will be financed under a new thematic special instrument, the Ukraine 

1 

2 

3 

4 

5 

Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual 
financial framework for the years 2021 to 2027, OJ L 433I, 22.12.2020, p. 11. 
Regulation (EU) XXX/XXX of the European Parliament and of the Council of XXX on establishing the 
Limited Recourse Loan to Ukraine (OJ XXX). 
Regulation  (EU)  2022/2463  of  the  European  Parliament  and  of  the  Council  of  14  December  2022 
establishing an instrument for providing support to Ukraine for 2023 (macro-financial assistance +) (OJ 
L 322, 16.12.2022, p. 1, ELI: http://data.europa.eu/eli/reg/2022/2463/oj). 
Regulation  (EU)  2024/792  of  the  European  Parliament  and  of  the  Council  of  29  February  2024 
establishing 
ELI: 
http://data.europa.eu/eli/reg/2024/792/oj). 
Regulation  (EU)  2022/2463  of  the  European  Parliament  and  of  the  Council  of  14  December  2022 
establishing an instrument for providing support to Ukraine for 2023 (macro-financial assistance +) (OJ 
L 322, 16.12.2022, p. 1, ELI: http://data.europa.eu/eli/reg/2022/2463/oj). 

29.2.2024, 

2024/792, 

Ukraine 

Facility 

(OJ 

the 

L, 

EN 

1 

  EN 

 
 
 
Loan  Instrument,  over  and  above  the  MFF  ceilings.  When  mobilising  the  Ukraine  Loan 
Instrument  in  the  framework  of  the  budgetary  procedure,  budgetary  availabilities  in  other 
special  instruments,  applicable  sectoral  rules,  any  legal  or  other  obligations  including  under 
the EURI  Instrument, priorities, prudent  budgeting and sound financial management  will be 
considered.   

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

Article  312  TFEU  constitutes  the  legal  basis  for  the  adoption  of  the  Multiannual  Financial 
Framework. 

• 

Subsidiarity (for non-exclusive competence)  

The initiative falls under a policy area where the EU has exclusive powers (under Article 312 
TFEU). Therefore, the subsidiarity principle does not apply. 

• 

Proportionality 

The  changes  are  proportionate  to  the  urgent  need  to  establish  an  instrument  for  providing 
support to Ukraine, which can be implemented only once the budgetary coverage to loans to 
Ukraine has been established. 

• 

Detailed explanation of the specific provisions of the proposal 

Chapter I – General Provisions 

Article 2 – Compliance with the ceilings of the MFF 

Under  the  existing  provisions  of  Article  2(3)  of  Regulation  (EU,  Euratom)  2020/2093 
amounts needed to honour repayment obligations of the Union under borrowing-and-lending 
operations in case the Union does not receive from the beneficiary state the due payment on 
time  (i.e.  the  mobilisation  of  a  guarantee  for  financial  assistance  to  Member  States  and 
Ukraine) would be mobilised over and above the MFF ceilings.  

The amount mobilised cannot result in exceeding the limits of the own resources ceiling. The 
provision extending the budgetary coverage from the headroom to the guarantee for financial 
assistance  to  Ukraine  under  the  Ukraine  Support  Loan  Regulation  is  therefore  compatible 
with paragraphs 1 and 3 of Article 312 TFEU, under which the MFF ‘shall ensure that Union 
expenditure  develops  in  an  orderly  manner  and  within  the  limits  of  its  own  resources’,  and 
‘shall  lay  down  any  other  provisions  required  for  the  annual  budgetary  procedure  to  run 
smoothly’. 

Chapter 3 – Special Instruments 

Section 1 – Thematic Special Instruments 

Article 10c – Ukraine Support Loan Instrument 

This new Article is introduced to provide for the ‘Ukraine Support Loan Instrument’, a new 
thematic special instrument.  

EN 

2 

  EN 

 
 
The  specific  items  of  expenditure  for  which  the  Ukraine  Support  Loan  Instrument  may  be 
used  are  the  debt  service  costs,  which  comprise  costs  of  funding and  costs  of  issuing 
and managing liquidity, due in respect of the funds borrowed on the capital markets for a loan 
to Ukraine to be implemented in enhanced cooperation. 

4. 

BUDGETARY IMPLICATIONS 

By extending the mobilisation of a guarantee for financial assistance over and above the MFF 
ceilings to Ukraine for the proposed financial assistance in addition to financial assistance to 
EU Member States and to Ukraine under the MFA+ instrument, the Ukraine Facility and the 
MFA to Ukraine under the Ukraine Loan Cooperation Mechanism, the proposal will allow a 
more  efficient  use  of  the  budgetary  resources  under  the  MFF  ceilings.  The  possibility  to 
mobilise  the  guarantee  over  and  above  the  MFF  ceilings  would  offer  full  coverage  of  the 
financial assistance available to Ukraine in accordance with   Regulation (EU) XXX/XXX of 
the European Parliament and of the Council in the next years, in accordance with the principle 
of sound financial management.  

The ‘Ukraine Loan Instrument’ special instrument included in this proposal will be mobilised 
in the framework of the budgetary procedure provided for in Article 314 TFEU, for amounts 
established in accordance with the applicable procedures laid down in the relevant basic acts. 
During  the  current  MFF  period,  the  funds  borrowed  for  financing  the  loan  to  Ukraine  are 
expected to give rise to debt service costs, invoiced in 2027, whose coverage may require the 
mobilisation of the ‘Ukraine Support Loan Instrument’ special instrument. When mobilising 
the  Ukraine  Support  Loan  Instrument  in  the  framework  of  the  annual  budgetary  procedure, 
budgetary  availabilities  in  other  special  instruments,  applicable  sectoral  rules,  any  legal  or 
other  obligations  including  under  the  EURI  Instrument,  priorities,  prudent  budgeting  and 
sound financial management will be considered.   

As expenditure in relation to special instruments is entered in the budget ‘over and above’ the 
relevant MFF ceilings, the present proposal does not impact the MFF ceilings. 

EN 

3 

  EN 

 
 
2025/3500 (APP) 

Amended proposal for a 

COUNCIL REGULATION 

amending Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial 
framework for the years 2021 to 2027 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 312 thereof, 

Having regard to the Treaty establishing the European Atomic Energy Community, and in 
particular Article 106a thereof,  

Having regard to the proposal from the European Commission,  
Having regard to the consent of the European Parliament6,   

Acting in accordance with a special legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

Following  Russia’s  unprovoked  and  unjustified  war  of  aggression  against  Ukraine, 
the Union has been supporting Ukraine with a series of financial measures. 

Ukraine  will  require  continued  financial  and  economic  assistance  in  a  predictable, 
continuous, orderly, flexible and timely manner covering its financing needs notably 
resulting from Russia’s war of aggression. To that end, the Union has established a 
new instrument under Regulation (EU) XXX/XXX of the European Parliament and 
of  the  Council.  Under  that  instrument,  the  envisaged  financial  assistance  is  to  be 
provided in the form of loans.  

Council  Decision  (EU)  XXX6  has  authorised  enhanced  cooperation  for  the 
establishment of a Ukraine Support Loan of an amount of EUR 90 000 000 000. . 
the 
Pursuant 
implementation  of  enhanced  cooperation,  is  to  be  borne  by  the  participating 
Member  States.  The  administrative  costs  related  to  the  implementation  of  any 
enhanced cooperations should be borne by the Union budget.  

the  expenditure  resulting 

to  Article  332  TFEU, 

from 

To that end, tThe Union budget guarantee should be extended to cover the financial 
assistance in the form of a loan to Ukraine of an amount of EUR 90 000 000 000 
implemented  in  enhanced  cooperation  under  Regulation  (EU)  XXX/XXX  of  the 
European  Parliament  and  of  the  Council.  That  guarantee  should  ensure  that  the 
necessary resources are always available in time in order to allow the Union to meet 
all its financial obligations towards its creditors. 

(5) 

It  should  be  possible  to  mobilise  the  necessary  appropriations  in  the  Union  budget 
over  and  above  the  ceilings  of  the  multiannual  financial  framework  for  additional 
financial  assistance  to  Ukraine.  That  possibility  should  be  without  prejudice  to  the 

6 

Council Decision (EU) 2026/… (OJ L …, ELI: …). 

EN 

4 

  EN 

 
 
obligation to respect the own resources ceiling laid down in Article 3(1) of Council 
Decision (EU, Euratom) 2020/2053. 

(6)  With a view to providing support to Ukraine on a highly concessional basis, it is 
appropriate  to  establish  a  new  thematic  special  instrument  –  ‘the    Ukraine 
Support  Loan  Instrument’,  which  would  allow  financing  of  the  debt  service 
costs.  The  debt  service  costs  comprise  cost  of  funding and  costs  of  issuing 
and managing  liquidity,  due  in  respect  of  the  funds  borrowed  on  the  capital 
markets  for  a  loan  to  Ukraine  to  be  implemented  in  enhanced  cooperation. 
Given that the debt service costs related to the loan to Ukraine are expected to start 
being invoiced in the last year of the Multiannual Financial Framework for the years 
2021  to  2027,  it  is  appropriate  to  consider  budgetary  availabilities  in  other  special 
instruments  while  taking  into  account  applicable  sectoral  rules,  any  legal or  other 
obligations  including  under  Article  10a  of    Council  Regulation  (EU,  Euratom) 
2020/2093,7 priorities,  prudent  budgeting  and  sound  financial  management,  when 
mobilising the Ukraine Support Loan Instrument in the framework of the budgetary 
procedure.  

(7) 

(8) 

(9) 

In view of the urgency entailed by the exceptional needs of Ukraine in the context of 
Russia’s  unprovoked  and  unjustified  war  of  aggression,  it  is  considered  to  be 
appropriate to invoke the exception to the eight-week period provided for in Article 4 
of Protocol No 1 on the role of national Parliaments in the European Union, annexed 
to the Treaty on European Union, to the Treaty on the Functioning of the European 
Union and to the Treaty establishing the European Atomic Energy Community. 

Council  Regulation  (EU,  Euratom)  2020/2093  should  therefore  be  amended 
accordingly. 

In light of the situation in Ukraine and in order to allow for the prompt application of 
the measures provided for in this Regulation, it should enter into force as a matter of 
urgency  on  the  day  following  that  of  its  publication  in  the  Official  Journal  of  the 
European Union, 

HAS ADOPTED THIS REGULATION: 

Regulation (EU, Euratom) 2020/2093 is amended as follows: 

(1) 

Article 2 is amended as follows: 

Article 1 

(a) 

in paragraph 2, the first subparagraph is replaced by the following: 

‘2.  Where  it  is  necessary  to  use  the  resources  from  the  special 
instruments  provided  for  in  Articles  8,  9,  10,  10a,  10b,  10c  and  12, 
commitment and corresponding payment appropriations shall be entered 
in the budget over and above the relevant MFF ceilings.’ 

(b) 

in paragraph  3In  Article 2(3) of Regulation  (EU, Euratom) 2020/2093, the 
following subparagraph is added: 

‘Where it is necessary to mobilise a guarantee for financial assistance in the 
form  of  a  loan  to  Ukraine  to  be  implemented  in  enhanced  cooperation 

7 
financial framework for the years 2021 to 2027 (OJ L 433 I, 22.12.2020, p. 11). 

Council  Regulation  (EU,  Euratom) 2020/2093  of  17 December  2020  laying  down  the  multiannual 

EN 

5 

  EN 

 
 
under  Regulation  (EU)  XXX/XXX  of  the  European  Parliament  and  of  the 
Council  and  authorised  in  accordance  with  Article  223(1)  of  the  Regulation 
(EU,  Euratom)  2024/2509  of  the  European  Parliament  and  Council,  the 
necessary amount shall be mobilised over and above the MFF ceilings. ’ 

(2) 

the following Article 10c is inserted: 

‘Article 10c 

Ukraine Support Loan Instrument 

The  Ukraine  Support  Loan  Instrument  may  be  used  for  the  sole  purpose  of 
financing  debt  service  costs  of  a  loan  to  Ukraine  to  be  implemented  in 
enhanced  cooperation.  The  Ukraine  Support  Loan  Instrument  may  be 
mobilised  by  the  European  Parliament  and  the  Council  in  the  framework  of 
the budgetary procedure provided for in Article 314 TFEU.ʼ 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

Article 2  

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the Council 
The President 

EN 

6 

  EN