Ministerial Committee on EU Affairs discusses European Council and Ukraine reparations loan

In its meeting on Tuesday 16 December, the Ministerial Committee on European Union Affairs outlined Finland’s positions for the European Council and the EU-Western Balkans summit taking place this week. The ministerial committee also discussed support for Ukraine and the use of frozen Russian assets to finance a reparations loan for the reconstruction of Ukraine.

The European Council meeting on 18 and 19 December will focus on Ukraine, European defence and security, the next multiannual financial framework, the Middle East, EU enlargement and internal reforms, migration, the geoeconomy and competitiveness.

In Finland’s view, the EU must remain united in its response to Russia’s invasion of Ukraine. It is especially important that the EU decide quickly on additional funding for Ukraine and that an agreement be reached on the reparations loan for Ukraine at the December European Council. The reparations loan would allow the Council to make swift progress through qualified majority voting.

Finland is open to guarantee arrangements related to the use of frozen Russian Central Bank assets. Finland considers the Commission’s proposal on Member States’ guarantees for the reparations loan acceptable, provided that the maximum amount of Member States’ guarantee liabilities is strictly limited.

The EU-Western Balkans summit on 17 December will focus on deepening cooperation between the Union and the countries in the region in a variety of areas. Finland considers the summit a useful opportunity to strengthen relations between the EU and the Western Balkans and wants to promote a credible enlargement policy based on the EU’s membership criteria, with particular emphasis on the importance of democratic institutions and reforms related to the rule of law.

The European Council will hold its first discussion on the EU’s multiannual financial framework for 2028–2034. Finland emphasises the importance of allocating funds in ways that align more strongly than at present with the EU’s key policy priorities, such as improving Europe’s defence and competitiveness. Special attention must be paid to Finland’s position as a Member State on the EU’s eastern external border.

Finland is in favour of simplifying the structure of the financial framework and reducing the number of funding programmes. Finland finds the overall level proposed by the Commission too high. The funding must be kept at a reasonable level so that Finland's net contribution does not increase. Finland is opposed to the proposal for new loan-financed investment instruments based on joint debt. The next financial framework must be subject to the strongest possible conditionality linked to compliance with the rule of law.

Inquiries: Juuso Kilpinen, Special Adviser for EU Affairs, tel. +358 50 322 9636, Minna Kivimäki, State Secretary for EU Affairs, tel. +358 295 160 431 and Marko Ruonala, Chief Communications Specialist, tel. +358 50 522 8233, Prime Minister’s Office