(1)

Accessible, affordable and high-quality long-term care allows people in need of care to maintain autonomy for as long as possible and live in dignity. It helps to protect human rights, promote social progress and solidarity between generations, combat social exclusion and discrimination and can contribute to the creation of jobs.

(2)

In November 2017, the European Parliament, the Council and the Commission proclaimed the European Pillar of Social Rights (1), setting out 20 principles to support well-functioning and fair labour markets and welfare systems. Principle 2 promotes gender equality by fostering equality of treatment and opportunities between women and men in all areas. Principle 9 promotes the right to work-life balance for people with caring responsibilities. Principle 10 emphasises workers’ rights to a high level of protection of their health and safety at work. Principle 17 recognises the right of people with disabilities to inclusion, in particular to services that enable them to participate in the labour market and in society. Principle 18 on long-term care states that everyone has the right to affordable long-term care services of good quality, in particular home care and community-based services.

(3)

Long-term care services organised by public authorities, at national, regional or local levels, are primarily considered social services of general interest as they have a clear social function. They facilitate social inclusion and safeguard fundamental rights of all people in need of care, including older people.

(4)

Most carers are women according to the ‘2021 Long-term care report: trends, challenges and opportunities in an ageing society’ of the European Commission and the Social Protection Committee (2) (the ‘2021 Long-term care report’). The gender-based gap in the distribution of care work is one of the key drivers of gender inequality in the labour market. Women, on average, have lower incomes, including pensions, and are potentially less able to afford care, while at the same time living longer than men and thus being more in need of long-term care and exposed to a higher risk of poverty and social exclusion throughout their life time. Adequate and affordable formal long-term care services together with policies to improve working conditions in the sector and to reconcile paid employment with caring responsibilities could therefore be beneficial to gender equality.

(5)

This Recommendation promotes the application of Articles 21, 23, 24, 25, 26, 31, 33 and 34 of the Charter of Fundamental Rights of the European Union (3) covering non-discrimination, equality between women and men, the rights of the child, the rights of the elderly, integration of persons with disabilities, fair and just working conditions, and the rights to family and professional life and social security and social assistance.

(6)

This Recommendation respects the United Nations Convention on the Rights of Persons with Disabilities, which recognises the equal right of all persons with disabilities to live independently in the community, with choices equal to others.

(7)

The European Pillar of Social Rights action plan, adopted by the Commission on 4 March 2021, announced an initiative on long-term care with the aim of setting a framework for policy reforms to guide the development of sustainable long-term care that ensures better access to quality services for those in need, and encouraged Member States to invest in the health and care workforce, improving their working conditions and access to training.

(8)

The 2021 Long-term care report highlights that the demand for high-quality long-term care is set to rise and that increasing its provision can contribute to gender equality and social fairness. That report identifies access, affordability, and quality as key challenges in long-term care, an appropriate workforce as key to meeting the rising demand for high-quality services, while highlighting that informal care often comes with neglected costs.

(9)

Population ageing is expected to increase the demand for long-term care, as decline in functional ability and the need for long-term care are associated with older age. According to the 2021 Long-term care report, the number of people aged 65 or over is projected to increase by 41°% over the next 30 years, from 92,1 million in 2020 to 130,2 million in 2050, while the number of people aged 80 or over is projected to increase by 88 %, from 26,6 million in 2020 to 49,9 million in 2050.

(10)

The COVID-19 pandemic has negatively affected long-term care systems and exacerbated many pre-existing structural weaknesses, in particular the lack of quality services and worker shortages, and highlighted the urgent need to strengthen the resilience of long-term care systems and to step up efforts to improve personal autonomy and facilitate independent living.

(11)

According to the ‘2021 Ageing Report – Economic and Budgetary Projections for the EU Member States (2019-2070)’ of the European Commission and the Economic Policy Committee, there are marked variations across Member States in terms of the level of public funding for long-term care, with some countries investing less than 1 % of GDP, and some others spending more than 3°% of GDP. In 2019, public expenditure on long-term care amounted to 1.7°% of the Union’s GDP according to that report, which is less than the estimated value of hours of long-term care provided by informal carers, estimated to be around 2.5°% of the GDP of the Union (4). In Member States with low public expenditure on long-term care, use of formal long-term care services is more limited. The growing demand for long-term care increases pressure on public expenditure, while also calling for improving the cost-effectiveness of long-term care provision, for example, via health promotion and preventive policies, better integration and targeting of services, collecting data and evidence, and using new and digital technologies. Policies conducive to the sustainable funding of long-term care are important for the sustainability of public finances, particularly in the context of an ageing population and decreasing workforce in the Union.

(12)

Relying heavily on informal care will not be sustainable and formal care needs and pressure on public budgets are expected to increase.

(13)

Social protection coverage for long-term care is limited and costs often represent a serious barrier to accessing long-term care. For many households, financial reasons are at the top for not using, or not using more, professional home-care services. Without adequate social protection, the estimated total costs of long-term care can often exceed a person’s income. While arrangements of social protection vary across Member States, in some, public support is available only to a small proportion of people with long-term care needs. Even when available, social protection is often insufficient, as even after receiving support, on average, nearly half of older people with long-term care needs are estimated to be below the poverty threshold after meeting the out-of-pocket costs of home care.

(14)

Many people cannot access the long-term care they need due to, among other reasons, an overall low offer of services and to the limited range of long-term care options and territorial gaps. In many Member States the choice of long-term care is limited. Where there is a choice, it is mainly between informal care, mostly provided by women, and residential care. The supply of home and community-based long-term care is still low. In addition, territorial disparities in long-term care provision makes equal access to long-term care difficult, especially in rural and depopulating areas. The choice is even more limited for persons with disabilities due to uneven accessibility of care services. While acknowledging the diversity of long-term care arrangements across the Member States, strong public networks of long-term care services providers, with adequate human and financial resources, can contribute to improving access to long-term care services.

(15)

In long-term care, quality depends on an effective quality assurance mechanism, which in many Member States is lacking or is under-resourced. Quality assurance is often insufficient in home and community-based care. While quality of residential care is more regulated, quality standards often focus on clinical outcomes and do not sufficiently address the quality of life of people receiving care and their ability to live independently. Even when quality standards are in place, their enforcement is not always effective, often due to an inadequate administrative set-up or lack of resources. Lack of high-quality standards applied strictly to both public and private care providers can lead to situations of neglect and abuse of care recipients and poor working conditions for carers A national quality framework for long-term care, adapted to national context and operational set ups, can help to address those challenges. Such a framework can be reflected into specific quality frameworks for various levels of provision and administration of long-term care or various care settings.

(16)

Long-term care has an important social value and job creation potential, but Member States struggle to attract and retain care workers inter alia due to inadequate skills, difficult working conditions and low wages. There are untapped opportunities to address workforce shortages in the sector. Such measures could include, according to national needs and circumstances, targeting part-time workers who want to increase their working hours, unemployed and inactive former carers, formal long-term care workers who want to delay their retirement and students. Without prejudice to the competence of the Member States to regulate the admission, including the volumes of admission, of third-country nationals for the purpose of work, exploring legal and ethical migration pathways for long-term care workers could potentially contribute towards addressing workforce shortages.

(17)

The skills required in the care sector are increasingly complex. Skills are a combination of knowledge, ability and attitude that enable an individual to perform a task or an activity successfully within a given context. In addition to traditional skills and competences, carers often need to have technological expertise relating to the use of new technologies, digital skills and communication skills, often in a foreign language, and skills to handle complex needs and work in multidisciplinary teams. Without appropriate education and training policies, including on-the-job training, the skills requirements can act for many as a barrier to enter or progress further in the sector.

(18)

Professional carers often experience lack of training on occupational health and safety, non-standard work arrangements, irregular working hours, shift work, gaps in social protection, physical or mental strains and low wages. Low coverage by collective agreements of long-term care workers and limited public expenditure in long-term care can contribute to low wages in the sector.

(19)

Certain groups of workers, including live-in care workers or domestic workers providing long-term care, face particularly difficult working conditions, including low wages, unfavourable working-time arrangements, undeclared work, inadequate social protection, and non-compliance with essential labour protection rules and irregular forms of employment. The 2011 Domestic Workers Convention (No. 189) of the International Labour Organization lays down basic rights and principles, and requires national competent authorities to take a series of measures with a view to ensuring decent working conditions for domestic workers.

(20)

Informal care has been essential in long-term care provision, as informal carers, mostly women, traditionally carry out the bulk of caregiving, often due to a lack of accessible and affordable formal long-term care. On the other hand, many people also choose to provide or to receive informal care as a matter of preference. However, providing informal care can negatively affect carers’ physical and mental health and well-being and is a significant obstacle to employment, particularly for women. That has an immediate effect on their current income, and affects their old-age income due to a reduced accrual of pension rights, which can be even more significant for carers with additional childcare responsibilities. Therefore, a good work-life balance and better reconciliation of work and care duties are necessary for all informal carers, both men and women. In addition, in some cases, informal carers do not have access to adequate social protection and do not receive sufficient direct and/or indirect support for their caregiving activities, including financial support. Measures supporting the validation of their skills can help those interested to transition to formal care activities. Children and young people with a chronically ill family member tend to have more mental health problems and more adverse outcomes with long term effects on their income and inclusion in society.

(21)

The organisation of long-term care differs across the Union. Long-term care is organised in an often complex system of services across health and social care and sometimes other types of support, such as housing and local activities. There are also differences in terms of the employment status of professional carers and in terms of the roles played by the national, regional and local levels of administration and by the public, private and cooperative sectors. Indicators used for monitoring long-term care also vary and administrative data are often not available or comparable at Union level.

(22)

Long-term care stakeholders include those in need of long-term care, their family members and organisations representing them, relevant authorities at national, regional, and local levels, social partners, civil society organisations, long-term care providers, and bodies responsible for promoting social inclusion and integration and for the protection of fundamental rights, including national equality bodies. Social economy bodies, including cooperatives, mutual benefits societies, associations and foundations, and social enterprises are important partners for public authorities in the provision of long-term care.

(23)

The European Semester process, supported by the Social Scoreboard, has highlighted the challenges in long-term care, resulting in some Member States receiving country-specific recommendations in that area. The guidelines for the employment policies of the Member States adopted by Council Decision (EU) 2022/2296 (5) underline the importance of ensuring availability of affordable, accessible and quality long-term care. The Open Method of Coordination for Social Protection and Social Inclusion aims to promote accessible, high-quality and sustainable long-term care and supports that objective through monitoring, multilateral surveillance of reforms, thematic work, and mutual learning. The Social Protection Committee developed a European quality framework for social services (6), including long-term care. However, there is still no Union comprehensive framework to guide national reforms in long-term care.

(24)

The Union provides many funding opportunities for long-term care, targeting different investment priorities in accordance with the specific regulations of the various funding programmes, which include the European Regional Development Fund (with priority focus on non-residential family- and community-based services), the European Social Fund plus, and its Employment and Social Innovation strand, the Just Transition Fund, Horizon Europe, EU4Health Programme, the Digital Europe Programme, technical support to improve the capacity of national authorities to design, develop and implement reforms through the Technical Support Instrument and the Recovery and Resilience Facility for eligible reforms and investments in the context of the recovery from the COVID-19 pandemic.

(25)

This Recommendation builds on Union law regarding transparent and predictable working conditions, such as Directive 96/71/EC of the European Parliament and of the Council (7), Directive (EU) 2019/1152 of the European Parliament and of the Council (8) and Directive (EU) 2022/2041 of the European Parliament and of the Council (9), regarding work-life balance, such as Directive (EU) 2019/1158 of the European Parliament and of the Council (10), and regarding health and safety at work, such as Council Directive 89/391/EEC (11), Council Directive 89/656/EEC (12), Council Directive 90/269/EEC (13), Council Directive 98/24/EC (14),

Directive 2000/54/EC of the European Parliament and of the Council (15), Directive 2003/88/EC of the European Parliament and of the Council (16), Directive 2004/37/EC of the European Parliament and of the Council (17) and Directive 2013/35/EU of the European Parliament and of the Council (18), which is applicable and relevant to long-term care.

(26)

In full respect of the principles of subsidiarity and proportionality and taking into account the diversity and different organisational set-ups of long-term care systems, including decentralised ones, this Recommendation is without prejudice to the powers of Member States to organise their social protection systems and does not prevent them from maintaining or establishing provisions on social protection which go beyond those recommended,

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in the merger section of the ‘Competition policy’ website of the Commission (http://ec.europa.eu/competition/mergers/cases/). This website provides various facilities to help locate individual merger decisions, including company, case number, date and sectoral indexes,

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in electronic form on the EUR-Lex website (http://eur-lex.europa.eu/homepage.html?locale=en) under document number 32022M10619. EUR-Lex is the online point of access to European Union law.

(1)

An association agreement between the Union and Ukraine (2), including a Deep and Comprehensive Free Trade Area, entered into force on 1 September 2017.

(2)

In 2014, Ukraine embarked on an ambitious reform programme with the aim of stabilising its economy and improving the livelihoods of its citizens. The fight against corruption, as well as constitutional, electoral and judicial reforms, are among the top priorities on the agenda. The implementation of those reforms was supported by consecutive macro-financial assistance programmes, under which Ukraine has received assistance from the Union in the form of loans for a total of EUR 6,6 billion.

(3)

The emergency macro-financial assistance, which was made available in the context of mounting threat, right before the Russian invasion, pursuant to Decision (EU) 2022/313 of the European Parliament and of the Council (3), provided EUR 1,2 billion in loans to Ukraine, disbursed in two instalments, each of EUR 600 million, in March and May 2022.

(4)

The Union’s exceptional macro-financial assistance of up to EUR 1 billion, made available pursuant to Decision (EU) 2022/1201 of the European Parliament and of the Council (4), provided swift and urgent support to the Ukrainian budget and was fully disbursed in two tranches on 1 and 2 August 2022. That assistance constituted the first stage of the planned exceptional macro-financial assistance to Ukraine of up to EUR 9 billion, announced by the Commission in its communication of 18 May 2022 entitled ‘Ukraine Relief and Reconstruction’ and endorsed by the European Council of 23-24 June 2022.

(5)

Decision (EU) 2022/1628 of the European Parliament and of the Council (5) constituted a further step in the implementation of the Union’s planned exceptional macro-financial assistance. It established the basis for providing to Ukraine a further amount of up to EUR 5 billion in the form of loans on highly concessional terms, of which EUR 2 billion was disbursed on 18 October, with the remaining EUR 3 billion to be disbursed by the end of 2022.

(6)

Russia’s unprovoked and unjustified war of aggression against Ukraine since 24 February 2022 has caused Ukraine a loss of access to financial markets and a significant drop in public revenue, while public expenditure to address the humanitarian situation and to maintain the continuity of State services has increased markedly. In that very uncertain and volatile situation, the best estimates of Ukraine’s funding needs by the International Monetary Fund (IMF) in the summer of 2022 pointed to an extraordinary funding gap of around USD 39 billion in 2022, of which around half could be met thanks to international assistance. The swift provision by the Union of the macro-financial assistance to Ukraine under Decision (EU) 2022/1628 was, given the extraordinary circumstances, considered to be an appropriate short-term response to the sizeable risks to Ukraine’s macro-financial stability. The further amount of up to EUR 5 billion of exceptional macro-financial assistance under that Decision was to support Ukraine’s macro-financial stabilisation, strengthen the immediate resilience of the country and sustain its capacity towards recovery, thereby contributing to the public debt sustainability of Ukraine and its ability to ultimately be in a position to meet its financial obligations.

(7)

Since the beginning of Russia’s war of aggression against Ukraine, the Union, its Member States and European financial institutions have mobilised EUR 19,7 billion for Ukraine’s economic, social and financial resilience. That amount combines support from the Union budget, in the amount of EUR 12,4 billion, including the exceptional macro-financial assistance and support from the European Investment Bank and the European Bank for Reconstruction and Development, fully or partially guaranteed by the Union budget, as well as further financial support by Member States, in the amount of EUR 7,3 billion.

(8)

In addition, the Council decided on assistance measures to support the Ukrainian armed forces under the European Peace Facility, in the amount of EUR 3,1 billion under Council Decision (CFSP) 2021/509 (6), and a military assistance mission in support of Ukraine with EUR 0,1 billion for the common costs under Council Decision (CFSP) 2022/1968 (7). The Union and its Member States have also delivered unprecedented in-kind emergency response via the Union Civil Protection Mechanism under Regulation (EU) 2021/836 of the European Parliament and the Council (8), constituting the largest emergency operation since the creation of that mechanism, and channelling millions of emergency items to Ukraine and the region.

(9)

The European Council of 23 June 2022 decided to grant the status of candidate country to Ukraine. Ongoing strong support to Ukraine is a key priority for the Union. As the damage from Russia’s war of aggression to the Ukrainian economy, citizens and businesses is tremendous, ongoing strong support to Ukraine requires an organised collective approach as set out in the instrument for providing Union support to Ukraine (macro-financial assistance +) established by this Regulation (the ‘Instrument’).

(10)

Russia’s war of aggression against Ukraine represents a strategic geopolitical threat to the Union as a whole and requires Member States to stand strong and united. It is therefore essential that Union support be deployed rapidly and be able to adapt flexibly and gradually for immediate relief and short-term rehabilitation on the way to future reconstruction.

(11)

The general objective of the Instrument is to contribute to closing the funding gap of Ukraine in 2023, notably by providing highly concessional short-term financial relief to Ukraine’s State budget in a predictable, continuous, orderly and timely manner, including financing the rehabilitation and initial support towards post-war reconstruction, where appropriate, with a view to supporting Ukraine on its path towards European integration.

(12)

To attain the Instrument’s general objective, the assistance should be provided to support macro-financial stability in Ukraine, and to ease Ukraine’s external financing constraints. The Commission should implement the support under the Instrument in accordance with the key principles and objectives of the measures taken within the different areas of external action and other relevant Union policies.

(13)

The provision of rehabilitation support, repair, and maintenance of critical functions and infrastructure as well as relief for people in need and for most affected areas in terms of material and social support, temporary housing, residential and infrastructural construction should also count among the main areas of support under the Instrument.

(14)

The Instrument should also support the strengthening of the capacity of Ukrainian authorities to prepare for the future post-war reconstruction and for the early preparatory phase of the pre-accession process, as appropriate, including the strengthening of Ukraine’s institutions, reforming and reinforcing the effectiveness of public administration as well as transparency, structural reforms and good governance at all levels.

(15)

The Instrument will support the Union’s external policy towards Ukraine. The Commission and the European External Action Service should work closely together throughout the support operation in order to coordinate, and ensure the consistency of, the Union’s external policy. The support to Ukraine under the Instrument will continue to contribute significantly to satisfying Ukraine’s funding needs as estimated by the IMF, the World Bank and other international financial institutions, taking into account Ukraine’s capacity to finance itself with its own resources. The determination of the amount of the support also takes into account the expected financial contributions from bilateral and multilateral donors, as well as the pre-existing deployment of the Union’s other external financing instruments in Ukraine and the added value of the overall Union involvement.

(16)

The situation of Ukraine requires a step-by-step approach whereby an instrument focusing on macro-financial stability as well as immediate relief and rehabilitation should be accompanied by continuous support under the Neighbourhood, Development and International Cooperation Instrument – Global Europe established by Regulation (EU) 2021/947 of the European Parliament and of the Council (9) and the humanitarian aid operations under Council Regulation (EC) No 1257/96 (10).

(17)

This Regulation should lay down the resources available for the Instrument for the period from 1 January 2023 to 31 December 2023 with possible disbursements until 31 March 2024. A maximum amount of EUR 18 billion should be made available in the form of loans. In addition, for the period from 1 January 2023 to 31 December 2027, this Regulation should provide for an interest rate subsidy. To ensure coverage of interest costs during the lifetime of the loans, contributions from the Member States beyond 2027 should be renewed and continue as external assigned revenue unless covered through other means in future multiannual financial frameworks. Therefore it might be possible to extend the contributions from the Member States beyond 2027.

(18)

This Regulation should provide the possibility for the Member States to make available additional resources, as external assigned revenue, to be implemented under the memorandum of understanding (MoU) of the Instrument. Such a possibility for additional contribution should also be made for interested third countries and parties as external assigned revenues, in accordance with Article 21(2), points (d) and (e), of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (11) (the ‘Financial Regulation’). To foster synergies and complementarities, it is appropriate to allow that such additional contributions from the Member States, from interested third countries and parties could also be made available to the programmes established under Regulations (EU) 2021/947 and (EC) No 1257/96 to finance measures contributing to the objectives of the Instrument.

(19)

Voluntary contributions by the Member States should be irrevocable, unconditional and on demand. For that purpose, the Member States should enter into a contribution agreement within the meaning of Article 22(2) of the Financial Regulation with the Commission. Such contribution agreement should cover the contribution to the interest rate subsidy and, should the Member States wish to provide them, also additional amounts.

(20)

The support under the Instrument should be made available under the precondition that Ukraine continue to respect effective democratic mechanisms and its institutions, including a multi-party parliamentary system, and the rule of law, and to guarantee respect for human rights.

(21)

The support under the Instrument should be linked to policy conditions to be set out in a MoU. Those conditions should also include commitments to strengthen the country’s economic performance and resilience, the business environment, facilitate critical reconstruction and address challenges in the energy sector.

(22)

The policy conditions should be complemented by stringent reporting requirements, aiming to ensure that the funds are used in an efficient, transparent and accountable manner.

(23)

In view of the situation in Ukraine, it is appropriate to provide for a mid-term review of the MoU.

(24)

The support under the Instrument should be released subject to the respect of preconditions, satisfactory implementation and progress towards the implementation of the policy conditions.

(25)

It is appropriate to provide for the possibility to reassess the funding needs of Ukraine and to reduce, suspend or cancel the support if those needs decrease fundamentally during the period of the disbursement of the support under the Instrument compared to the initial projections. It is also appropriate to provide for the possibility to suspend or cancel the disbursements in case the requirements for the release of the support under the Instrument are not fulfilled.

(26)

In the context of Ukraine’s urgent financing needs, it is appropriate to organise the financial assistance under the diversified funding strategy provided for in Article 220a of the Financial Regulation and established as a single funding method therein, which is expected to enhance the liquidity of Union bonds and the attractiveness and cost-effectiveness of Union issuance.

(27)

Given the difficult situation of Ukraine caused by Russia’s war of aggression and to support Ukraine on its long-term stability path, it is appropriate to provide loans to Ukraine on highly concessional terms with a maximum duration of 35 years and to not start the repayment of the principal before 2033. It is also appropriate to derogate from Article 220(5), point (e), of the Financial Regulation and to allow the Union the possibility to cover the interest rate costs and to waive the administrative costs that would otherwise be borne by Ukraine. The interest rate subsidy should be granted as an instrument deemed appropriate to ensure the effectiveness of the support under the Instrument within the meaning of Article 220(1) of the Financial Regulation. It should be financed from additional voluntary contributions by the Member States and should become available gradually as the agreements with the Member States enter into force.

(28)

It should be possible for Ukraine to request the interest rate subsidy and the waiver of administrative costs each year.

(29)

The financial liability from loans under this Regulation should not be supported by the External Action Guarantee, by derogation from Article 31(3), second sentence, of Regulation (EU) 2021/947. Support under the Instrument should constitute financial assistance within the meaning of Article 220(1) of the Financial Regulation. In considering the financial risks and the budgetary coverage, no provisioning should be constituted for the financial assistance in the form of loans under the Instrument and, by derogation from Article 211(1) of the Financial Regulation, no provisioning rate as a percentage of the amount referred to in Article 4(1) of this Regulation should be set.

(30)

Council Regulation (EU, Euratom) 2020/2093 (12) currently does not allow for coverage of the financial liability arising from loans under the Instrument. Pending its possible amendment, which would allow, as a guarantee, the mobilisation of budgetary resources over and above the multiannual financial framework (MFF) ceilings and up to the limits of the ceilings referred to in Article 3(1) and (2) of Council Decision (EU, Euratom) 2020/2053 (13), it is appropriate to seek an alternative solution providing additional resources.

(31)

Voluntary contributions by Member States in the form of guarantees have been identified as an appropriate tool to provide the protection allowing the borrowing and lending operations under this Regulation. The Member States’ guarantees should constitute an appropriate safeguard ensuring the Union’s ability to repay the borrowings supporting the loans under the Instrument.

(32)

The guarantees provided by Member States should cover the support under the Instrument in the form of loans of up to EUR 18 000 000 000. It is important that Member States complete the applicable national procedures to provide the guarantees as a matter of the utmost priority. Given the urgency of the situation, the time needed for the completion of those procedures should not delay the disbursement of the required financial support to Ukraine in the form of loans under this Regulation. At the same time, the financial support under the Instrument in the form of loans should be made available progressively, as the guarantees provided by Member States enter into force. In view of the principle of sound financial management and prudence, the Commission should arrange the loans taking due consideration of its credit standing. However, the support should become available for the full amount of up to EUR 18 000 000 000 as of the date of application of an amendment to Regulation (EU, Euratom) 2020/2093, or its successor, which provides for a guarantee of the loans under the Instrument under the Union budget over and above the MFF ceilings and up to the limits of the ceilings referred to in Article 3(1) and (2) of Decision (EU, Euratom) 2020/2053.

(33)

The Member States’ guarantees should be irrevocable, unconditional and on demand. Those guarantees should ensure the Union’s ability to repay the funds borrowed on the capital markets or from financial institutions. The guarantees should cease to be callable as of the date of application of an amendment to Regulation (EU, Euratom) 2020/2093, or its successor, which provides for a guarantee of the loans under the Instrument under the Union budget over and above the MFF ceilings and up to the limits of the ceilings referred to in Article 3(1) and (2) of Decision (EU, Euratom) 2020/2053. The guarantees should be called in the event that the Union does not receive a timely payment from Ukraine in respect of the loans under the Instrument, including, in particular, in cases of changes to the payment schedule for any reason whatsoever as well as expected and unexpected non-payments.

(34)

Amounts recovered under the loan agreements in respect of the loans under the Instrument should be reimbursed to the Member States that have honoured the guarantee calls, by derogation from Article 211(4), point (c), of the Financial Regulation.

(35)

Before calling on the guarantees provided by the Member States, the Commission, at its sole discretion and responsibility as the Union institution entrusted with the implementation of the general budget of the Union in accordance with Article 317 of the Treaty on the Functioning of the European Union, should examine all measures available under the diversified funding strategy provided for in Article 220a of the Financial Regulation, in accordance with the limits set out in this Regulation. In the relevant call on guarantees, the Commission should inform the Member States about the examination, as appropriate.

(36)

The relative share of the contributions of each Member State (contribution key) to the overall guaranteed amount should correspond to the relative shares of Member States in the total gross national income (GNI) of the Union. The calls on the guarantees should be made pro rata, applying the contribution key. Until all the guarantee agreements between the Commission and the Member States enter into force, the contribution key should be proportionately adjusted on a temporary basis.

(37)

It is appropriate that the Commission and Ukraine conclude a loan agreement for the loan support, within the framework of the conditions set out in the MoU. In order to ensure that the Union’s financial interests linked to the support under the Instrument are protected efficiently, Ukraine should take appropriate measures regarding the prevention of and fight against fraud, corruption and any other irregularities linked to that support. In addition, provision should be made in the loan agreement and in the financing agreement for the Commission to carry out checks, for the Court of Auditors to carry out audits and for the European Public Prosecutor’s Office to exercise its competences, in accordance with Articles 129 and 220 of the Financial Regulation.

(38)

Since the objective of this Regulation, namely to contribute to closing the funding gap of Ukraine in 2023, notably by providing highly concessional short-term relief to Ukraine’s State budget in a predictable, continuous, orderly and timely manner, cannot be sufficiently achieved by the Member States but can rather, by reason of its scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.

(39)

In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (14).

(40)

In view of the urgency entailed by the exceptional circumstances caused by 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.

(41)

In light of the situation in Ukraine, this Regulation 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,

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Given that it does not seem possible to adopt the proposed amendment to the MFF Regulation timely enough to allow for the coverage of the financial liability arising from the loans under the MFA+ Instrument as proposed by the Commission, it is appropriate to seek an alternative solution that would allow for swift disbursements of the funds to Ukraine.

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